Don’t Overlook This Voluntary Disclosure

A voluntary disclosure should be made by a taxable person to notify the FTA of an error or omission in their tax return, tax assessment, or tax refund application. As per Article 8 of Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures.

Voluntary disclosures are required to be made in the following cases:

• Where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, in an amount of more than AED 10,000
• Where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, by not more than AED 10,000 and there is no Tax Return through which the error can be corrected; or
• where a filed Tax Refund Application is incorrect, resulting in a calculation of a refund to which the Taxpayer is entitled being more than the correct amount unless the error was a result of an incorrect Tax Return or Tax Assessment.

Time limit for Filing Voluntary Disclosure

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

How businesses can find Errors/ mistakes in already filed VAT Returns- VAT Audit Review

A VAT Audit-Review by a Registered Tax Agency (Approved from Federal Tax Authority of UAE) can help you to find all the errors/mistakes/omissions in your VAT returns in order to minimize the risk of fines and penalties in case of Tax Assessment by FTA. It will also ensure that you do not create VAT issues for your customers which can adversely affect your commercial relationship.

Our approach to carrying out VAT Audit reviews is flexible and targeted to the needs of individual businesses; we will not follow exactly the same procedure for each review as we recognize that every business and every issue faced is unique. We will look at the processes that the business has established for managing VAT and will consider the controls that are in place to manage risk. This is essential in order to find errors/mistakes done in previous returns and also for demonstrating to tax authorities that the business has the appropriate risk management structure.

At the end of the process of VAT Audit Review, a detailed VAT Report is produced highlighting areas of concern which may cover a broad range of observations on deficiencies/errors/mistakes, including impact & recommendations for corrections of those errors.

Request a call back and one of our consultants will meet with you to discuss further.