Vat Penalty Consultants in Dubai, UAE
Businesses in the UAE often face significant fines from the Federal Tax Authority (FTA) due to VAT-related issues, which can place a heavy burden on their finances. Our team of VAT penalty reconsideration specialists is here to assist you in reducing these penalties. We provide expert guidance to ensure compliance, address disputes effectively, and represent your case before the FTA helping you safeguard your business interests and focus on sustainable growth.
The Federal Tax Authority (FTA) imposes substantial fines on businesses and individuals in the UAE for non-compliance with VAT laws. However, these penalties may be reduced or waived if a valid reason or reasonable excuse is provided.
Under Cabinet Decree No. 105 of 2021, effective from March 1, 2022, clear procedures have been outlined for requesting VAT penalty waivers. The FTA also issues guidelines that allow taxpayers to apply for reconsideration, reductions, or exemptions from fines.
At Now Consultant, our VAT specialists guide you through the entire process—whether it’s submitting a penalty reconsideration request, preparing documentation, or filing appeals with the Tax Disputes Resolution Committee (TDRC) under Cabinet Decision No. 51 of 2021. We work to protect your financial interests and ensure smooth resolution with the authorities.
Our VAT Penalty Reconsideration Process
At Quick Digits, we make the process of requesting a VAT penalty waiver straightforward and stress-free. Our structured approach includes the following steps:
Reconsideration Request
We submit a reconsideration request on your behalf within 20 days of receiving the FTA penalty notice. Our team ensures the application is prepared in line with FTA regulations, supported by detailed reasoning and a strong conclusion—demonstrating that the penalty assessment should be reviewed fairly.
Appeal to the TDRC
If the FTA rejects the reconsideration request due to insufficient grounds, we assist you in filing an appeal with the Tax Disputes Resolution Committee (TDRC) within 20 days of the rejection. This provides a second opportunity to challenge the penalty.
Reduction or Exemption under Cabinet Decision No. 51 of 2021
The law allows individuals and businesses to request penalty reductions or exemptions for VAT violations. However, the FTA requires valid proof and justification. Our experts help you prepare strong supporting documents that meet FTA’s specific criteria, increasing the chances of approval.
We assist you in meeting the FTA’s specific criteria by preparing valid supporting evidence, enabling you to confidently submit applications for VAT penalty reductions or exemptions.
Requirements for VAT Penalty Reduction Application
To qualify for a VAT penalty reduction or exemption, the following conditions set by the Federal Tax Authority (FTA) must be met:
A valid excuse that aligns with FTA criteria must be submitted, supported by appropriate evidence.
The justification must be clearly explained and backed with strong documentation.
The request should be filed within 40 business days after the expiration of the justification period.
Evidence must demonstrate that the violation has been corrected.
If the violation was found to be deliberate, the application will be rejected.
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FAQ
Is a Tax Consultant Necessary in Dubai?
With Dubai’s evolving legal and financial landscape, it has become essential for businesses of all sizes to engage a professional tax consultant. Their expertise helps resolve complex tax matters while ensuring full compliance with Dubai’s regulations.
How Do Businesses Pay Taxes in the UAE?
Since June 1, 2023, the UAE has applied a 9% corporate tax on net profits exceeding AED 375,000. Profits below this threshold are taxed at 0%. In addition, businesses must register for VAT if their taxable supplies exceed the mandatory registration threshold of AED 375,000.
What If I Miss a Tax Deadline?
According to Cabinet Decision No. 75 of 2023 and Ministerial Decision No. 74 of 2023, the UAE Federal Tax Authority imposes a fine of AED 10,000 for late corporate tax registration. Continued delays can result in additional penalties, starting from AED 500 per month and rising up to AED 5,000 per month depending on the length of the delay.
What are your tax consultancy fees?
Our tax consultancy services in Dubai start from AED 500 and can go up to AED 20,000, based on the scope and complexity of your requirements.
Can you help with Free Zone company tax compliance?
At Quick Digits, our tax experts assist Free Zone companies with complete tax compliance, including corporate tax registration, filings, and exemption assessments. We ensure your business meets all FTA requirements accurately and on time, covering major Free Zones such as DMCC, IFZA, MEYDAN, SHAMS, and RAKEZ.