The FTA encourages the submission of Voluntary Disclosure by taxpayers who may have violated the provision or who believe that a mistake was made. A proactive approach to failures or mistakes is necessary for avoiding a penalty. 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, there are situations defined in the guide under which a taxable person can file Voluntary Disclosure.
It is a matter of question, of how a business can find errors/mistakes in already filed VAT Returns. A business can go for an Audit review to understand the mistakes in already filed returns. A VAT Audit-Review by a Registered Tax Agency (approved by the Federal Tax Authority of the UAE) can help you to find all the errors/mistakes/omissions in your VAT returns
Eventually, this exercise will minimize the risk of fines and penalties in case of a Tax Assessment by the FTA. It will also ensure that you do not create VAT issues for your customers which can adversely affect your commercial relationship.
There have several instances of rejection of applications due to improper applications filed by taxpayers. MBG Corporate Services has assisted numerous clients in filing the Voluntary Disclosure forms. Our team of VAT experts guides you throughout the process and also after the application is submitted.
With a thorough understanding of business sectors, we can assist your company to apply within the stipulated 20-day time frame for discovering the error. We also guide you at every step even after the application submission. With due diligence, you can prevent the rejection of your applications and receive your VAT Refunds on time.
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