All About Private VAT Clarification in the UAE

Sometimes businesses can face VAT concerns that need to be addressed specifically. The problem grows when companies try to follow the rules but can’t find clear guidance. Searching public documents doesn’t always help. Reaching out directly to the tax authority often feels like a dead end.

This is where the private VAT clarification process becomes essential. It allows businesses to request a direct, official answer from the Federal Tax Authority (FTA), helping them stay compliant and avoid costly errors.

Let Tax Gian explain to you what a private VAT clarification is and how you can apply for it with the help of our VAT agents in the UAE.

What Is a Private VAT Clarification in the UAE?

A private clarification is an official document from the FTA. It answers a taxpayer’s question about VAT or any other tax matter based on their specific case.This written clarification:

• Is signed and stamped by the FTA.
• Only applies to the person who requested it.
• Cannot be used as a reference for other taxpayers.

Applicable for the transaction/business as mentioned.

Who Can Apply a Private Clarification?

You can apply for a private clarification if:

• You are registered for VAT or another UAE tax.
• You are the authorised person or company involved.
• You have a VAT agent in Dubai acting on your behalf.

Tax groups can also apply, but only through the group’s representative member.

What Can You Ask in a Private Clarification?

Private clarifications can be requested if:

• The matter involves UAE federal taxes or penalties.
• The situation directly affects you or your company.
• The request is based on actual facts, not guesswork or future plans.

You must explain:

• The issue you need help with.
• The exact law you’re asking about.
• All facts and documents related to the case.

When Will the FTA Say No to Your Request?

Not all requests get an answer. The FTA may refuse if:

• The issue is already explained in a public guide.
• The question is hypothetical or unclear.
• A tax audit or assessment on the same issue is ongoing.
• The case looks like tax avoidance or abuse of the system.
• Documentation and proof are insufficient, e.g., in the case of penalties.

The FTA also checks if the request relates to another person or if it’s submitted by someone without proper authority.

How to Submit Your Request

You can either follow the steps yourself or take help from VAT agents in Dubai to avoid confusion.

1. Go to the EmaraTax portal.
2. Fill in the official form.
3. Attach the required documents (contracts, tax numbers, legal proof, etc.).
4. Pay the application fee.

You have 40 business days to submit the request after starting it. If you don’t, the draft will be deleted.

What Happens After You Apply?

Once you submit your request, the FTA:

• Reviews your application and documents.
• May ask for more details.
• Sets a timeline for issuing a reply.

If extra information is needed, the 50-day or 60-day clock resets from the day they receive it.

• Clarifications for VAT or Excise Taxare issued within 50 business days.
• Clarifications for Corporate Taxtake 60 business days.

You’ll be notified of any delays or changes to the expected timeline.

Refund of Clarification Fees

The fee you pay can be refunded in some instances:

• If you withdraw your request within 2 business days.
•       If the FTA decides not to issuea clarification because:
• You’re not registered for Corporate Tax (unless the issue is about registration).
• You’re already under tax audit.
• The matter is under review for a legal change with the Ministry of Finance.

How Long Is the Clarification Valid?

Once issued, the clarification is binding as long as:

•       Your facts and documents don’t change.
•       The law it’s based on stays the same.

If the law changes or the FTA updates its view with a new clarification, the old one becomes invalid.

Why Does This Matters for Your Business?

Getting a private VAT clarification:

•       Helps you avoid mistakes.
•       Reduces your risk of penalties.
•       Gives you clear direction on complex tax matters.

This process is especially beneficial when public information is not enough or the law seems unclear.

How can Tax Gian Assist?

The UAE’s private VAT clarification process gives businesses a chance to ask and receive clear answers directly from the tax authority. If you’re unsure whether your business qualifies or how to apply correctly, it’s smart to consult our VAT agents in the UAE who understand the FTA’s procedures. Our experts will stay by your side throughout the process and will try their best to get you the response you expected.