VAT RECONSIDERATION
KWS Fintech Services is one of the leading independent specialist VAT firms in the UAE
Value Added Tax (VAT) is an important part of the UAE tax system. All companies registered for VAT must comply with filing and payment obligations as per Federal Decree-Law No. 8 of 2017. Failure to meet VAT compliance can result in financial penalties imposed by the Federal Tax Authority (FTA).
However, there may be circumstances where a business was unable to comply due to reasonable cause. In such cases, it is possible for companies to submit a formal reconsideration request to the FTA seeking a waiver or reduction of VAT penalties.
Supporting documentation should be provided to evidence the claim, such as records of system failures, medical emergencies etc. The FTA will evaluate each reconsideration request on a case-by-case basis.
If the FTA accepts the reconsideration application, penalties may be waived fully or partially. However, there is no guarantee of success. Businesses should ensure VAT compliance as much as possible and view reconsideration as a last resort. Maintaining proper VAT records and seeking expert advice can help minimize non-compliance risks in the first place.
Overall, the VAT reconsideration process gives companies a chance to rectify errors and seek relief from penalties. However, it is not a substitute for strong VAT compliance and financial management. Businesses in the UAE are advised to proactively comply with VAT obligations and only seek reconsideration in truly unavoidable circumstances.
