VAT Penalty Waiver in UAE

If your business has been issued a penalty by the FTA for a violation (such as late filing, late payment, or non-compliance), you may be eligible to request a penalty waiver by way of Reconsideration or Penalty Waiver Request and request for settlement of Administrative Penalties by instalments. The person may submit a request to the Authority to reconsider the decision, or part thereof, issued by the Authority in connection to the Person, provided that the request specifies reasons within 40 Business Days from the date he was notified of the decision.

The Authority may reduce or waive Administrative Penalties for any Person or category whose violation of the provisions of the Law or Tax Law was proved, if the following conditions are met:

There is an excuse that is acceptable to the Authority.
Availability of evidence that justifies the existence of the excuse and the violation it caused, which led to the imposition of Administrative Penalties.

HLB HAMT Management Consultancy (HHMC)’s Penalty Waiver or Reconsideration Support helps you navigate the penalty waiver process, ensuring the best possible outcome for your business.

Request for Reconsideration in UAE

The business who has been issued a penalty by the FTA may submit a request to the Authority to reconsider the decision or part thereof, provided that the request specifies reasons, within 40 Business days from the date he was notified of the decision. The Authority shall review the reconsideration request and issue a decision including reasons within (40) forty Business Days from the date of receiving the application and inform the applicant of its decision within (5) five Business Days from the date of issuing the decision.

Our experts will prepare and submit the Reconsideration request to the FTA on your behalf, ensuring all necessary documents are included and the request is compliant with FTA guidelines. This will include:

A written application outlining your case and reasons for requesting the waiver.
Supporting documentation demonstrating that the non-compliance was unintentional or caused by factors beyond your control.
A formal request for penalty reduction or cancellation.

Once your Reconsideration request has been submitted, the FTA will assess it and may respond with one of the following:

Partial Waiver: The FTA may agree to reduce the penalty, partially waiving the fine based on the severity of the violation.
Full Waiver: In cases where the FTA believes the circumstances warrant it, the penalty may be fully waived.
Rejection: In some cases, the FTA may reject the waiver request. If this happens, we will explore further options, including appealing the decision.

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Penalty Waiver Request in UAE

A business can submit a request to waive the Administrative Penalties imposed by the Authority in the forms prepared by the Authority. The Authority may approve the Waiver of Administrative Penalties if the following are met:

No Connection to Tax Evasion: The penalties must not be related to any tax evasion crimes.
Timely Submission: The request must be submitted within the period specified by the FTA’s Committee.
Specific Qualifying Cases:
- Death of the Registered Person: If the taxpayer is a natural person or sole establishment owner, and their death directly caused a delay in fulfilling tax obligations.
- Serious Illness of the Registered Person: If the registered person or sole establishment owner was seriously ill, and the illness directly prevented timely compliance.
- Impact of Key Employee Loss: If a key employee’s death, illness, or resignation directly caused delays in fulfilling tax obligations.
- Government-Imposed Restrictions: If government-imposed restrictions or precautionary measures in the UAE were the direct cause of non-compliance.
- Technical Failures in Authority Systems: If there was a general malfunction in the FTA’s systems, payment gateways, or telecommunications services that prevented a group of taxpayers from meeting their obligations.
- Custodial Sentence: If the registered person or sole establishment owner was serving a custodial sentence.
- Payments Made via Another Tax-Registered Account: If the taxpayer met their obligations and settled all due tax amounts through another tax-registered person’s account.
- Bankruptcy or Insolvency: If the taxpayer was declared insolvent or bankrupt, and outstanding taxes prior to the declaration were settled, as long as the bankruptcy was not intended to avoid paying penalties.
- Other Special Cases: Any additional cases assessed and approved by the Committee.

Need Assistance with Your Penalty Waiver Request in UAE?

Understanding the eligibility requirements and correctly submitting a waiver request can be challenging. Our team is here to provide expert guidance through every step, from documentation to submission, to increase the chances of a successful outcome.

Objection Made to the Tax Dispute Resolution Committee

If the FTA rejects the Reconsideration request, an objection to the Authority’s decision in respect of the reconsideration request shall be submitted to the Tax Dispute Resolution Committee (TDRC) within 40 Business Days from the date of being notified of the Authority’s decision.

Why File an Objection with the TDRC?

Filing an objection allows taxpayers to formally challenge the FTA’s decision, providing an opportunity to present additional documentation or clarification to support their case. This process ensures that taxpayers are treated fairly under the law and that any issues with FTA decisions are given due attention by an independent committee.

Our TDRC Appeal Assistance

Navigating the appeal process can be complex. We are here to help you file an objection with the TDRC, maximizing your chance for a favourable outcome. Our services include:

Detailed Consultation: We assess your case and provide guidance on eligibility and required documentation.
Preparation of Appeal Documentation: Our team assists in organizing and submitting all necessary paperwork to the TDRC.
Step-by-Step Support: We guide you through each stage of the appeal process, from submission to follow-up, ensuring you have expert support at every turn.

FTA Audit Support in UAE

HLB HAMT Management Consultancy (HHMC) offers expert FTA audit support to help businesses navigate the complexities of VAT compliance during an audit by the Federal Tax Authority (FTA). Our services include pre-audit preparation, such as reviewing tax filings and organizing documents, as well as representation during the audit to ensure smooth communication with the FTA. Post-audit, we assist with reviewing audit findings, challenging penalties, and ensuring full compliance through tailored tax recommendations. With our deep knowledge of UAE VAT laws and a proven track record, we provide cost-effective solutions to minimize financial risks and ensure smooth audits for your business.

Why Choose Our Penalty Waiver Services in UAE and UAE?

Expert Knowledge of UAE VAT Laws: Our team of tax professionals has in-depth knowledge of UAE VAT regulations, ensuring the best possible outcomes for your business.
Tailored Support: We provide personalized support tailored to your business’s unique circumstances, helping you stay compliant and minimize the impact of penalties.
Proven Track Record: With years of experience in handling penalty waiver requests, we have a proven track record of successfully helping businesses navigate complex tax matters.
Cost-Effective Solutions: We work efficiently to help you avoid unnecessary fines and penalties, minimizing the financial impact on your business.

If you have received a penalty for non-compliance with VAT laws, contact us today for expert advice and comprehensive support. Our team is ready to help you submit a penalty waiver request to protect your business’s interests.

VAT Penalty Waiver in UAE

Request for Reconsideration in UAE