UAE VAT Voluntary Disclosure vs Reconsideration Form

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Oct 10,2019 / Haroon Juma / VAT & Tax Blogs

As a Registered UAE FTA Tax Agency, several questions are usually posed by UAE businesses on the appropriate use of specific processes set out by the UAE Federal Tax Authority. In this blog, we discuss the specific scenarios of when the Voluntary Disclosure or Reconsideration Form is used.

It is of prime importance that the UAE taxpayer is aware of the UAE Federal Laws to save time and effort and avoid any unnecessary penalties and charges. Below is an illustration of the difference between the 211 UAE VAT Voluntary Disclosure form and the Reconsideration form.

	211 Voluntary Disclosure Form	Reconsideration Form
Why?	Deals primarily with situations where there is an error committed on the taxpayer’s UAE VAT return. 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 UAE 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.	Deals primarily with situations where FTA has made a decision on any penalty levied on you and you wish to request for a review of the FTA’s decision. As per FTA, there are different levels to submit your dispute and raise concerns: Level 1: Reconsideration Form – This is where you submit your reconsideration form on FTA portal. Please be informed that this form and any other supporting documents shall be submitted in Arabic only. The FTA will not entertain any forms written in any other language. Level 2: Tax Disputes Resolution Committee – This is the next step you take when the FTA has made a decision and you are still not satisfied. Note that you only have 20 days from the time the decision was made to submit this form. Level 3: Federal Court Litigation – This is the last step you take if you are still not satisfied with the decision made. You can take your case to court where the decision will remain unchallenged. Note that you only have 20 days after the decision made by Tax Disputes Resolution committee.
When?	This form must be made within 20 business days after discovering the error in the VAT return.	This form must be submitted within 20 business days after FTA has made its original decision.
How?	To submit the 211 UAE VAT Voluntary disclosure form, go to the VAT201 – VAT Returns tab in the VAT section of the e-services portal and click on the Submit Voluntary Disclosure button.	To submit a Reconsideration form, go to the e- forms section and click on Reconsideration Form.
Penalties?	There are fines and penalties levied when submitting 211 UAE VAT Voluntary disclosure. Please refer to the FTA user’s guide for detailed penalties.	There are no fines and penalties levied when submitting a Reconsideration form.

In either scenario, preparation and submission of a thorough case with credible information are essential to achieve your desired outcome. Our experienced UAE Tax Consultants can assist you to manage these processes to a satisfactory outcome.

211 – UAE VAT Voluntary Disclosure form

Reconsideration Form

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