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FTA VAT Voluntary Disclosure UAE

Voluntary Disclosure application in the correct format and on time to avoid rejection.

We have a dedicated desk of tax professionals that have submitted Voluntary Disclosures for global corporations in the UAE and answered to FTA enquiries, making voluntary disclosure submission a breeze for our customers.

When does a taxpayer have to use VAT voluntary disclosure In the UAE?

In the event that a taxpayer makes an error or omission in a Tax Return, Tax Assessment, or Tax Refund application, a disclosure can be completed. This form “”VAT211″” enables taxpayers to repair errors. Depending on the circumstances, a taxable person should or may notify the FTA of an error or omission in an excise tax return, tax assessment, or refund application by submitting a voluntary disclosure.

What are the essential requirements for completing a VAT voluntary disclosure in Dubai?

  • If the taxpayers discovers that a tax return submitted by him to the FTA or a tax assessment sent to him by the FTA is Wrong , which resulted in a calculation of the payable tax being less than it should have been by more than 10,000 AED, he must submit a voluntary disclosure to correct such error.
  • If the taxpayers discovers that a tax refund application that he have presented to the FTA is incorrect, which resulted in calculating the refund amount to which he is entitled, being more than it should have been, he must submit a voluntary disclosure to correct such error.
  • If the taxpayers discovers that a tax return presented by him to the FTA or a tax assessment sent to him by the FTA is Wrong, which resulted in a calculation of the payable tax being more than it should have been, he may submit a voluntary disclosure to correct such error. If the taxpayer wants to make correction he has to check the variance. if the variance is more than 10,000 AED he only can make corrections by voluntary disclosure, less than that, he can adjust in the subsequent period.
  • If the taxpayers discovers that a tax refund application that he have presented to the FTA is incorrect, which resulted in calculating the refund amount to which he is entitled being less than it should have been, he may submit a voluntary disclosure to correct such error.

It is important to note that, Voluntary Disclosure submissions are subject to two types of penalties which are:

1. Fixed Penalty for Voluntary Disclosure

For every Voluntary Disclosure submission, there will be a fixed penalty of AED 1,000 for the first Voluntary disclosure. Thereafter, AED 2,000 each for any subsequent Voluntary Disclosure submission.

2. Percentage – Based Penalty

The FTA has additionally required that you submit a Voluntary Disclosure letter in a specific format, which would provide the background facts and a detailed description of the error(s) disclosed in this Voluntary Disclosure Form. The reasons for the Voluntary Disclosure, the inaccuracies revealed, and the impact on the relevant sections/boxes of the tax return should also be included in this letter.

The FTA can seek documentation or supporting evidence to proceed with approval of the Voluntary disclosure, thus it must be made only after a thorough evaluation of any current errors/commissions..

Time frame for submitting a VAT Voluntary Disclosure

The voluntary disclosure must be made within 20 business days of discovering the error or penalties may apply

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    Our Offices

    DUBAI

    Empire Heights, Podium Floor 3,
    Business Bay, Dubai, 124584, UAE

    Phone : +971 42 971 738

    Email : hello@capella.ae

    REQUEST A FREE QUOTE NOW!

    Take the first step towards improving your accounting system

    Fill out the form below and we’ll be in touch with you soon:

      (required)

      (required)

      (required)