VAT Reconsideration Services in UAE
In the United Arab Emirates (UAE), the Federal Tax Authority (FTA) oversees tax laws and the management and collection of federal taxes and fines. There are instances where taxpayers find themselves in disagreement with decisions made by the authority. In such scenarios, individuals and businesses have the option to apply for VAT Reconsideration. The FTA reviews the decision and may waive VAT penalties based on compelling evidence presented by the business.
Appealing FTA Decisions on Penalties
Who can apply for Penalty Reconsideration?
The Federal Tax Authority (FTA) is equipped to reevaluate its decisions regarding penalties imposed on business entities. Applicants can submit an application to the authority, appealing for a review of their case and a potential reversal of the penalty. This UAE VAT reconsideration application must be submitted within 20 working days from the receipt of the penalty. Importantly, any individual or entity contesting the penalty must prepare their application in Arabic.
Any legal or natural person has the right to apply to the FTA for reconsideration within 20 business days from the date of receiving the decision. Upon receiving the application, the FTA will review the request, and if it meets the necessary requirements, the FTA will issue a justified decision within 20 working days. The applicant will be notified of this decision within 5 business days from the date of issuance. It’s crucial to note that the application and all supporting documents must be in Arabic.

Saurav Gupta
Sun Shine Artifacts LLC

Nessie Mallari
Protech Middle East Solutions LLC

Ehab Abdelaziz
Poco Optics LLC

Craig Ogden
Conntrak Catering Services LLC

Alana Prinsloo
Casa Verde Real Estate LLC

Majid Hassan Alnaqbi
Majid Alnaqbi General Trading L.L.C

Khaled Khalifi
The Sylla Group FZ LLC

Mira S.
Amira Jewellery & Piercings FZ LLC

Vineeta Gogia
Media Monkeyz FZ LLC

Philip Hand
West One Contracting L.L.C

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VAT Reconsideration Procedure
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When Can You Use VAT Reconsideration Services?
You can use VAT Reconsideration Services in the UAE when you have disputes or concerns related to:
- VAT assessments made by the FTA, including discrepancies in declared and assessed amounts.
- VAT penalties imposed by the FTA, such as late filing penalties or incorrect tax calculations.
- Any other VAT-related decisions or actions taken by the FTA that you believe are incorrect.
Steps to Follow If Dissatisfied with FTA’s Decision
Tax Dispute Resolution Committee
- The reconsideration was not previously filed with the FTA.
- Penalties imposed by the authority have not been settled.
The decision made by the Tax Dispute Resolution Committee is considered final if the total amount of Due Tax and Administrative Penalties determined does not exceed AED 100,000. In such cases, taxable individuals or entities are not permitted to escalate the tax dispute to the Competent Court without first submitting the objection to the Committee.