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UAE Guide: How to Appeal Vat Penalties in Dubai, Abu Dhabi, and UAE?

VAT in UAE
How To Appeal Vat Penalties In Dubai, Abu Dhabi, And Uae

After the implementation of the new VAT law in Dubai, Abu Dhabi, UAE, new rules have been set for taxpayers. If the taxpayer does not agree with the court’s decision, they can appear for the tax dispute settlement to the court.

All taxable individuals must understand the application of the process for the dispute if and when any need arises. Before understanding the application process of VAT Penalties in Dubai, UAE, let’s learn the actions inviting VAT penalties.

Actions That Can Invite VAT Penalties in UAE

The following are the reasons why a taxable individual requires appealing VAT penalties.

  • Fails at submitting the VAT return in UAE
  • Purposeful failure for paying penalties
  • Involved in tax evasion & tax evasion policy
  • Non-maintenance of records pertaining to the UAE tax
  • Incorrect information
  • Improper submission of tax return

Steps to Appeal on VAT Penalties in Dubai, Abu Dhabi, Sharjah, UAE

Given below are the steps to appeal for the VAT penalty UAE. Let’s learn the steps in detail.

Step 1: Applying for Reconsideration to FTA

An individual may send an appeal to the authority for reconsideration of decisions issued in relation to that person. However, one must do it within 20 business days from getting notified. Upon this, the authority reviews the request only when it fulfills requirements and gets issued within 20 business days. After the approval, the authority would inform the candidate within five business days.

Step 2: Submitting the Objections to the Committee of the Tax Dispute Resolution

When FTA’s decision isn’t relevant, or taxpayers don’t get a satisfactory result with FTA’s decision, they may forward the issue to Tax Dispute Resolution Committee.

A petition gets filed with the TDRC by that taxpayer with jurisdictions. Tax dispute resolution might decide and extend the issue when and if the matter is serious. The time for filing with TDRC is 20 business days upon receiving the FTA’s results concerning the reconsideration request.

Step 3: Sending an Application to Federal Court of Appeal

If the tax dispute the vat late payment penalty UAE doesn’t reach AED 100,000, all parties must abide by the Tax Dispute Resolution Committee’s decision.

For the amount greater than or equal to 100,000, it can get appealed to the Federal Court. It must get filed within 20 business days, right from the TDRC’s notification.

Other Significant Disputes Concerning VAT

Other disputes may arise due to the incorrect tax treatment or tax obligation if TDRC isn’t involved. In such crucial scenarios, this type of issue shall get filed with the civil court. The cases get dealt with by the appointed experts or tax experts by the court in UAE. The assessment includes specialist tax supportand the assistance of litigation attorneys.

Summing up

Taxpayers in the UAE may face irregularities concerning the technical decision by FTA in UAE. The tax dispute or litigation may be a speedy process with the assistance of VAT experts in Dubai, UAE.

These experts offer comprehensive VAT litigation solutions to the ones facing challenges with vat penalty UAE.

For enquiries Phone: +971 567952590

 

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Top VAT Consultants in Dubai UAE (2024)

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21.  UAE Guide: How to Amend VAT Details in Dubai and Abu Dhabi?

22.  UAE Guide: What are VAT Designated Zones in Dubai?

23.  UAE Guide: What is VAT on Telecommunication & Electronic Services in Dubai?

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