VAT Voluntary Disclosure (VD)
Federal Tax Authority (FTA) has allowed businesses and taxpayers to notify FTA about the errors/mistakes and omission/changes in a Tax return or Tax Refund. Form 211, in UAE benefits a taxable person to make rectifications in the VAT Return or VAT Refund forms if they have made any mistakes/ errors.
From 211 (VAT Voluntary Disclosure)
There are specific scenarios where a Voluntary Disclosure Form should or can be initiated by registrants and submitted to the FTA. This would, in general, be in cases where a taxpayer becomes aware of an error or omission in a Tax Return, Tax Assessment or Tax Refund application, as below:
- If you become aware that a Tax Return submitted by you to the FTA or a Tax Assessment sent to you by the FTA is incorrect, which resulted in a calculation of the Payable Tax according to the Tax Law being less or more than it should have been, you must submit a Voluntary Disclosure to correct such error.
- If you become aware that a Tax refund application that you have 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 or less than it should have been, you must submit a Voluntary Disclosure to correct such error.
Taxable person or businesses are not required to submit a Voluntary Disclosure for the underpaid tax / over paid tax if the amount 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
VAT Voluntary disclosure form – 211 must be submitted to the Federal Tax Authority (FTA) within 20 business days from the date when the taxable person became aware of the error.
AL Dhaheri Jones & Clark is an approved tax agent by the Federal Tax Authority (FTA), approach us now for the assistance in the submission of VAT Voluntary disclosure and we will help your business to grow by avoiding any fines and penalties.