2. HLB HAMT has a team of VAT experts who will guide through the process
and apply for Voluntary disclosure in the exact format and in a timely
manner to avoid any chances of rejection.
We have dedicated desk of tax professionals who have submitted Voluntary
Disclosures in UAE for multinational conglomerates and responded to FTA
queries making the voluntary disclosure submission a cakewalk for the
clients.
3. What is VAT Voluntary Disclosure
Submission in UAE?
A voluntary disclosure is a form by which the taxpayer notifies the FTA
of an error or omission in a Tax return, Assessment or Refund
application. Where the error or omission resulted in a calculation of
payable tax being less than required by more than AED 10,000, then a
Voluntary Disclosure shall be made within 20 business days from the
date the taxable person becomes aware of the error.
A voluntary disclosure submission can be a result of independent
health check carried out by the tax registrant, any review related to any
transaction scenario, review of past returns filed or any changes to be
made based on instruction by FTA during review of refund application.
4. Voluntary Disclosure submissions can be done using form VAT 211 in the
FTA Portal. This form can be accessed in the FTA Portal under VAT section, as
shown below.
5. It is important to note that, Voluntary Disclosure submissions are subject to
two types of penalties which are:
1. Fixed Penalty for Voluntary Disclosure
For every Voluntary Disclosure submission, there will be a fixed penalty of
AED 1,000 for the first Voluntary disclosure. Thereafter, AED 2,000 each for
any subsequent Voluntary Disclosure submission.
6. 2. Percentage – Based Penalty
VD Submitted within below specified period
from the due date of submission of the Tax
Return, the Tax Assessment, or the relevant
refund application
Percentage based penalty
First-year 5%
Second-year 10%
Third-year 20%
Fourth-year 30%
After fourth year 40%
7. FTA has also mandated to upload a Voluntary Disclosure letter in a particular
format, which would provide 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 Voluntary disclosure must be made only after thorough review of any
existing errors/commissions as the FTA can request for documents or
supporting evidence to proceed with approval of Voluntary disclosure.
8. Frequently Asked Questions – Voluntary
Disclosure
What is Voluntary Disclosure (VD) in UAE?
Voluntary Disclosure is a form provided by FTA using which the tax
registered person can amend the previously filed VAT return due to error or
omission in the tax return.
It can also be used to correct any error or omission identified by FTA during
audit and communicated the same error or omission by Tax Assessment
order. After filing of refund application, if any correction is required, that
can be done through a Voluntary Disclosure submission.
9. HLB HAMT
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
www.hlbhamt.com
