VOLUNTARY DISCLOSURE FOR VAT

VOLUNTARY DISCLOSURE FOR VAT

 

INTRODUCTION :

 

A Voluntary Disclosure is a form provided by the Federal Tax Authority (“FTA”) pursuant to which the Taxpayer notifies the FTA of an error or omission in a Tax Return, Tax Assessment or Tax Refund application

 

DETERMINING  SUBMISSION OF VOLUNTARY DISCLOSURE :

 

♦ On becoming aware that a Tax Return submitted to the FTA is incorrect, which resulted in a calculation of the Payable Tax according to the Tax Law being less than it should have been

 

♦ On becoming aware that a Tax refund application submitted to the FTA is incorrect, which resulted in calculating the refund amount to which you are entitled according to the Tax Law, being more than it should have been

 

♦ On becoming aware that a Tax Return submitted to the FTA is incorrect, which resulted in a calculation of the Payable Tax according to the Tax Law being more than it should have been

 

♦ On becoming aware that a Tax refund application submitted to the FTA is incorrect, which resulted in calculating the refund amount to which you are entitled according to the Tax Law, being less than it should have been

 

 

NOTE :

 

Form should be not be submitted only if the amount of the Payable Tax is not  more than AED 10,000 as long as the person is able to correct the error in the Tax Return for the tax period in which the error has been discovered

 

TIME LIMITS FOR VOLUNTARY DISCLOSURE :

 

A) If an error(s) resulted in a calculation of the Payable Tax being more than AED 10,000

 

♦ Make a Voluntary Disclosure to the FTA within 20 business days from the date when the Taxable Person became aware of the error

 

B) If an error(s) resulted in a calculation of the Payable Tax being less than AED 10,000

 

♦ Correct the error in the Tax Return for the Tax Period in which the error has been discovered before the due date for the submission of the respective Tax Return

 

                                     OR

 

♦ Make a Voluntary Disclosure to the FTA, if there is no Tax Return through which the error can be corrected within 20 business days from the date of becoming aware of the error

 

 

STEPS TO SUBMIT THE FORM IN THE PORTAL :

 

1) Go to “VAT201 – VAT Returns” tab in the VAT Section & click on submit Voluntary Disclosure’ button on the row of the VAT Return against which you wish to submit the Voluntary Disclosure

 

NOTE: If the ‘Submit Voluntary Disclosure’ button is not available against any particular Tax Return , then this means that another updated Voluntary Disclosure Form has been submitted against it. Taxpayer can go to the “Voluntary Disclosure/Tax Assessment” section on eServices

 

2) Details of the Taxable Person and the VAT Return Period for which you are filing a Voluntary Disclosure is pre populated. Please check and ensure that this information is correct before going any further

 

3) Select the date on which you identified the error that you are disclosing in the Voluntary Disclosure Form. If the Voluntary Disclosure relates to multiple errors please indicate the date on which the first error was identified

 

4) Corrections of Errors

 

  As Reported:

 

♠ It indicates the amounts that have been disclosed in each box in the latest tax return, Voluntary Disclosure or Tax Assessment.

 

♠ These amounts are pre- populated in order to allow you to see the latest figures which correspond to this tax period.

 

As Current:

 

♠ It should be the total values that should have been reported for that period and not the error amounts

 

♠ The ‘As Current’ fields are pre-populated with the respective ‘As Reported’ amounts

 

♠ The ‘As Current’ field should be amended in each specific box of the Voluntary Disclosure and indicate the new total amount to be disclosed for that specific box

 

♠ If there were no errors in a field, the amount should remain the same as the ‘As Reported’ amount

 

5) Supporting Documentation

 

 ♦ A letter should be uploaded which provides the background facts and a detailed description of the error(s) disclosed in this Voluntary Disclosure Form

 

♦ This letter should also indicate the reasons for the Voluntary Disclosure and the errors disclosed, as well as the impact on the relevant sections/boxes of the tax return

 

♦ The letter will assist the FTA in acknowledging your request

 

6) Declaration and Authorized Signatory

 

♠ The details of the Authorized Signatory  are pre-populated in their registration application

 

♠ Review the details and check the declaration

 

7) Make payment of the amount due along with Penalty

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