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VAT Voluntary Disclosure services in UAE
The FTA gives the taxpayer the VAT Voluntary Disclosure Form so that the taxpayer can tell the FTA about a mistake or absence on a tax return or an application for a tax refund. The VAT voluntary disclosure form needs to be looked at very carefully. It might be best to get professional advice from a registered tax consultant before turning in any voluntary disclosures so that all of the possible effects can be understood in advance.
How to correct VAT voluntary disclosure UAE errors by FTA?
In the UAE, this is a highly complex question. It will be a tragedy if a business makes an error or mistake while submitting VAT and then repeats it while submitting a VAT voluntary disclosure.
FTA VAT voluntary disclosures in the UAE are Forms provided by the Federal Tax Authority (FTA), according to which the taxpayer notifies the FTA of an error or omission in a tax return, assessment and refund application. VAT Businesses that have to pay taxes will be able to fix any mistakes or errors on their own before the government finds out during a VAT audit or an assessment.
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When do you need to submit a VAT voluntary disclosure Form?
There are certain situations in which taxpayers should or can use a VAT Voluntary Disclosure Form and send it to the FTA. Highmark consultants will fill out a Voluntary Disclosure form when a taxpayer notices a mistake or omission in a VAT Return, VAT Assessment, or VAT Refund application.
- If you find out that a VAT Return you sent to the FTA or a VAT Assessment the FTA sent you was wrong, which caused the calculation of the Payable tax to be less than it should have been, you must send a Voluntary Disclosure to fix the mistake.
- If you find out that a VAT Return you sent to the FTA or a VAT Assessment the FTA sent you was wrong and caused the amount of tax you owe to be higher than it should have been, you can submit a VAT Voluntary Disclosure to fix the mistake.
When is business exempted from VAT Voluntary Disclosure form?
Businesses do not have to send a Voluntary Disclosure for unpaid taxes if the amount owed is less than AED 10,000. The error can be fixed in the Tax Return for the tax period in which the error was discovered.
VAT Voluntary Disclosure Services
Highmark Vat consultants in Dubai are not replaceable by an ordinary team of vat consultants in UAE. We are the one-stop solution provider for Vat Voluntary Disclosure services in UAE on which your business depends. We will door for successful business in Dubai.
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What is the Timeframe for submitting a VAT Voluntary Disclosure?
The VAT voluntary disclosure error must be filed within twenty (20) workdays, or penalties may apply.
Also, it’s a good idea for all businesses to make sure that the VAT Return filing has been done according to FTA rules. This will make the VAT Voluntary Disclosure Form 211 less likely to be used.
Highmark accountants can help you send FTA your VAT Voluntary declaration. For the VAT Voluntary Disclosure form, you had to know a lot about it, and the FTA law said that you had to follow many rules. Before making any Voluntary Disclosures, it’s essential to get professional help from tax consultants so that you can think about and deal with any possible consequences. If you made a mistake with your VAT, don’t worry. Let Highmark Accountants take care of your VAT voluntary declaration.
What is the percentage of fine for VAT Voluntary Disclosure?
| Fines based on a percentage % | From the date of the Tax Return, Tax Assessment, or the appropriate Refund Application was due. |
|---|---|
| 5% | for the first year |
| 10% | for the second. |
| 20% | in the third year |
| 30% | for the fourth year |
| 40% | after the fourth year |
What are the types of fines for Voluntary Disclosure in the UAE?
- If someone fills out the VAT Voluntary Disclosure form for the first time, they have to pay a fine of 3,000 AED.
- If the VAT Voluntary Disclosure form is used, there will be a fine of 5,000 AED for each repeat.
Highmark’s expert’s consultation on VAT Voluntary Disclosure
Calculation of the tax due:
Not only do our experts in UAE on VAT help you figure out how much tax you owe, but they also help you report the wrong amounts. That to the FTA, along with the right ideals. Both numbers have to be given to the local tax office so that any differences can be explained.
Review and submit supporting documents:
The FTA also needs a letter with background information and thorough descriptions of all errors found. The letter has to say why the VAT voluntary declaration was made and list the mistakes that were made. This letter, which was also looked over by Highmark’s team and sent to the tax office, will help the tax office acknowledge the request.
Our pros will also pay fines:
Note that you may have to pay a fine if you voluntarily tell VAT about a mistake. This is less than what taxpayers would have to pay if the FTA found the errors, as stated earlier. We can also discuss settling a ticket and help you figure out the best way.
We know you have many questions about voluntary UAE VAT declaration. Call us right now!
FAQs on VAT Voluntary Disclosure in UAE
What is VAT voluntary disclosure and how does it work in the UAE?
VAT voluntary disclosure allows eligible businesses in the UAE to come forward and rectify any errors or omissions in their previous VAT returns voluntarily. This helps businesses avoid penalties and potential legal consequences.
What are the penalties for not making a VAT voluntary disclosure?
Failure to make a VAT voluntary disclosure can lead to penalties imposed by the Federal Tax Authority (FTA). These penalties may change depending on the severity of the violation, but they can be quite substantial.
Is there a threshold or limit for VAT voluntary disclosure in the UAE?
There is no specific threshold or limit for VAT voluntary disclosure in the UAE. Any business, regardless of its size or turnover, can make a voluntary disclosure if they identify any errors or mistakes in their previous VAT returns.
Where can I find a guide on VAT voluntary disclosure in the UAE?
Highmark accountants will provide a comprehensive guide on VAT. This guide contains all the necessary information, procedures, and requirements for businesses to make a voluntary disclosure.
Do I need to fill out a specific form for VAT voluntary disclosure?
Yes, businesses are required to submit the VAT Voluntary Disclosure Form (Form 211) to the FTA when making a voluntary disclosure. This form can be found on the FTA’s website and should be completed accurately and truthfully.
Can I make a voluntary disclosure for VAT in Dubai or other emirates in the UAE?
Yes, voluntary disclosure for VAT can be made in all emirates of the UAE, including Dubai. The process and requirements are the same across the country.
Is there a format or template for a voluntary disclosure letter for VAT?
While there is no specific format or template for a voluntary disclosure letter, it is important to include all relevant details such as the nature of the error, the period it occurred, and the corrective measures taken. Professional assistance may be sought to ensure the letter meets the necessary requirements.
Can I make a voluntary disclosure for VAT return errors under UAE VAT law?
Absolutely. If you identified errors or omissions in your previous VAT returns, you could make a voluntary disclosure under the UAE VAT law. This allows you to correct these errors and comply with the regulations.
Updated VAT and excise tax voluntary disclosure guides in UAE?
Yes, the FTA periodically updates its Voluntary Disclosure User Guide to provide businesses with the most up-to-date information and procedures related to voluntary disclosure for VAT and Excise Tax in the UAE. It is recommended to refer to the latest version available on the FTA’s website.
What is the purpose of VAT voluntary disclosure in the UAE?
The purpose of VAT voluntary disclosure in the UAE is to encourage businesses to rectify any errors or mistakes in their previous VAT returns voluntarily. By doing so, businesses can avoid penalties and legal consequences while maintaining compliance with the VAT regulations.
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