Although VAT has been in effect in the UAE for more than two years, taxable persons may still have questions about specific provisions of the VAT legislation or decisions made by the Federal Tax Authority (FTA).
Taxable persons may submit a VAT Clarification Form to the FTA to inquire about VAT uncertainties. If the uncertainty persists after studying the FTA's VAT legislation, regulations, and guidelines, the businesses can apply for VAT Clarification.
Specific guidelines outline how to submit the VAT Clarification form, and businesses can seek advice from the best tax consultants like JAXA chartered accountants in Dubai. The following are some guidelines for submitting the UAE VAT Clarification form.
How to File a UAE VAT Public Clarification?
If you believe you have a valid VAT-related question and the uncertainty remains after reviewing the FTA's public clarifications and guidelines, you can appoint a tax agent in Dubai, UAE, to file the request. The tax consultant or agent will assist you in completing the application form and submitting it along with supporting documents and information.
The taxable person must email the VAT Clarification form to the FTA. The Federal Tax Authority accepts clarification requests from registered tax agents or appointed legal representatives in Dubai, UAE. On the other hand, tax advisers who are not registered tax agents in the UAE are not permitted to submit the application form on behalf of the taxable person.
Valid Reasons for Submitting the Clarification Request
The UAE's taxable person or registered tax agents can submit a VAT clarification request to the FTA. However, before submitting the UAE VAT clarification, you should ensure that your request meets the following FTA conditions:
- Even after analyzing the relevant tax legislation, regulations, and guidance issued by the FTA, there is still uncertainty about the VAT issue.
- The taxable individual has a material interest in the VAT issue.
- The FTA's previous clarifications should have addressed the VAT issue.
If the issue does not fall under these categories, the FTA will not clarify the specific VAT issue you raised. Therefore, before submitting the form, consult with reputable tax consultants in Dubai to ensure your request is valid under the FTA regulations. Tax agents in Dubai can also provide other significant reasons why FTA will not respond to your clarification request.
What is a VAT Clarification as per the Federal Tax Authority?
In FTA's words, a VAT clarification is written guidance that advises applicants on FTA's interpretation and stance on specific matters of VAT uncertainty subject to the Tax Authority's regulations and terms and conditions. The FTA's responses to your questions apply only to you and the specific VAT issue for which you sought clarification from the FTA. While dealing with materially different VAT transactions in the UAE, the FTA's response to the particular request does not apply to other taxable persons or the applicant himself.
Who can Apply for VAT Clarification in the UAE?
Anyone seeking technical clarification from the FTA on specific VAT matters may use the clarification form if they have researched the relevant laws before applying. The individual must, however, be a taxable person registered with the FTA. Consult the best tax consultants in Dubai for more information on the VAT clarification form.
End Note
All businesses should exercise such rights and mechanisms available under the UAE VAT Law to try and reduce the financial burden of penalties. In addition, it is essential to evaluate remedial actions to minimize the impact of any penalties imposed. Any such UAE VAT penalty waiver requests should be accompanied by a write-up detailing the facts of the case, relevant provisions of the Law, etc., which can help strengthen a case for a waiver. A weak appeal against a penalty can easily lead to its rejection.
