VAT Services

VAT Assessment and Appeals Services in UAE

Free Consultation

Let's Talk

    Edit Template

    VAT Assessment and Appeals Services in UAE

    In the United Arab Emirates, the introduction of Value Added Tax (VAT) has made the tax compliance environment more complex. Businesses must submit correct VAT returns and follow the regulations of the Federal Tax Authority (FTA). Often, despite the best efforts, businesses can be facing VAT assessments, disputes, or penalties resulting from errors or misinterpretations of the law. In those situations, it is imperative to get experienced support to manage the VAT assessment appeals process optimally. At Vigor Accounting & Taxation LLC, we offer comprehensive VAT assessment and appeals services that are designed to help firms solve their conflicting matters, and at the same time, we ensure compliance with the UAE tax laws.

    Understanding VAT Assessments

    A VAT assessment is an official determination made by the FTA regarding the amount of VAT payable by a business. If the FTA believes that a business has underpaid VAT, misreported its VAT returns, or failed to comply with VAT regulations, it may issue an assessment outlining the additional VAT due and any penalties associated with non-compliance.

    There are several reasons why businesses may receive a VAT assessment, including

    • Errors in VAT Returns

      VAT returns are the road to mistakes of such nature as faulty calculations, incomplete information, or misapplying of goods and services, which may eventually lead to a VAT assessment. Such mistakes could lead to underpayment or overpayment of the VAT, which will subsequently be corrected by FTA through the assessment process.

    • Failure to File VAT Returns

      Companies that don't meet their VAT deadlines can find themselves in a VAT assessment situation. In situations like these, the FTA can use the available data to calculate the VAT owing and then send a penalty notice for late filings along with the condolent.

    • FTA Audits

      The FTA performs regular audits in which businesses are checked for VAT compliance. By the time an audit has taken place, in case there is any mismatch found, the FTA might send a VAT assessment to collect the unrecovered taxes and apply penalties.

    • Misinterpretation of VAT Rules

      VAT regulations are not easily understandable and, in the cases, where VAT rules are not applied correctly, it causes the staff members of the organization to make mistakes by misclassifying supplies. Misclassifying supplies or not using the correct VAT treatment can result in a VAT assessment.

    The VAT Assessment Process in UAE

    When the FTA identifies an issue with a business's VAT returns or compliance, it may issue a formal VAT assessment notice. This notice outlines the reasons for the assessment, the amount of additional VAT payable, and any penalties imposed. The business is then required to respond to the assessment and either pay the amount due or challenge the assessment if it believes there has been an error.

    The VAT assessment process typically follows these steps

    01

    Business Reviews Assessment
    Upon the receipt of the VAT assessment notice, the business has to go through the assessment carefully to find out whether it is in agreement with the FTA's findings. It is very important to validate the accuracy of the assessment and be sure that all transactions are dealt with properly and accurately.

    02

    FTA Issues VAT Assessment Notice
    The FTA will issue a VAT assessment notice to the business, detailing the findings of the audit or review and specifying the additional VAT payable.

    03

    Payment or Appeal
    If the company, on the other hand, goes along with the VAT assessment, it must clear the debt of the remaining VAT within the time limit given by the FTA. Nevertheless, in case the company is not satisfied with the assessment, it has the option to file a petition and ask for a review of the judgment.

    VAT Appeals Process in the UAE

    If a business disagrees with a VAT assessment or penalty issued by the FTA, it has the option to file an appeal through the VAT appeals process. The appeals process allows businesses to challenge FTA decisions and seek a fair resolution. The key steps involved in the VAT appeals process include

    01
    Filing a Reconsideration Request
    The initial step in the VAT appeals process is the submissions of re-evaluation requests to FTA. It is necessary to send the request not later than 20 business days after reaching the VAT assessment notice. In the reconsideration request, the organization must be explanatory and provide documentation to sustain the reasons why they do not agree with the assignment or the penalty.
    02
    FTA Response to Reconsideration Request
    The FTA will review the reconsideration request and issue a decision within 20 business days of receiving the request. The FTA may decide to uphold the original assessment, modify the assessment, or cancel it entirely, depending on the evidence provided.
    03
    Appealing to the Tax Disputes Resolution Committee (TDRC)
    If the business does not agree with the FTA’s answer on the re-application, it can forward the applications to the taxpayer’s disputes resolution committee (TDRC). The TDRC is an authority of its own which settles tax disputes and issues legally final undertakings. The company ought to hand over the appeal to the TDRC in that time frame in 20 business days from the date when FTA made a decision on the reconsideration request.
    04
    Court of First Instance
    If the TDRC decision is unsatisfactory, businesses have the possibility to make an appeal at the Court of First Instance. Most of the time, this particular kind of appeal is filed in complicated cases where the legal interpretations of VAT laws are at stake.

    Common Challenges in VAT Assessments and Appeals

    Navigating the VAT assessment and appeals process can be challenging for businesses, particularly if they lack a deep understanding of VAT regulations and procedures. Some of the common challenges businesses face include

    01
    Complex Documentation
    The VAT appeals process mandates businesses to furnish all the necessary evidence and documents in order to back their claims. Faulty or incomplete documents can then stand as the evidence against tax payers, which results in the tax appeal being dismissed.
    02
    Strict Deadlines
    The VAT appeals process in the third step of litigation creates a very tight, regulated environment. It is obligatory for businesses to send their reconsideration requests and also appeals within specific time limits. It is likely that missing these time limits will result in the automatic refusal of the appeal.
    03
    Understanding VAT Regulations
    Value-added tax (VAT) laws and requirements in the UAE are complicate, and businesses may have difficulty in making out the rules that are apposite to their industry or transactions. Misinterpretation of these regulations can lead to incorrect assessments and penalties.

    Why Choose Vigor Accounting & Taxation LLC for Your VAT Assessment and Appeals in UAE

    At Vigor Accounting & Taxation, we offer expert VAT assessment and appeals services to help businesses resolve disputes with the FTA and minimize the impact of VAT assessments. Our team of VAT specialists has extensive experience in UAE tax laws and provides tailored solutions to address your specific needs.

    Expert Assessment icon

    Comprehensive Assessment Review

    We perform an in-depth check of your VAT evaluation notice to know if the FTA’s results are correct. Our professionals check your registration forms, fiscal records, and documentary proofs to recognize any differences and to inform you in a clear way about the valuation.
    Accurate Documentation and Filing icon

    Reconsideration Request Preparation

    If you differ with the VAT assessment, we will help you prepare a powerful request for reconsideration that sets out the issues of why you are against the tax demand. We collect all the required proofs and documents to back your claim and assure that the solicitation is filed timely.
    Application Submission icon

    VAT Appeals Representation

    From preparing the request for the revised decision to appealing to the TDRC in case it is necessary, we follow your business in the whole process of VAT appeals. We offer advice on the strategy as well as on the level of technical expertise to be employed to achieve the most satisfying solution in your case.
    FTA Compliance and Audit icon

    FTA Compliance and Audit Support

    Along with doing the VAT appraisals and appeals, we help with ongoing FTA compliance and audit support to companies with the aim of preventing future litigation. We take care that the VAT tax forms are correct, compliant, and are submitted on time, thus reducing the probability of assessments and penalties.

    Transform Your Vision into Reality—Book Your Free Consultation!

    Don’t wait—schedule your free consultation today and take the first step towards transforming your vision into reality!

      Edit Template
      Vigor Groups

      Business Setup in UAE

      Vigor Groups

      Legal Service

      Edit Template