What is VAT Reconsideration in the UAE?

Sometimes, businesses in the UAE receive a decision/response from the Federal Tax Authority (FTA) that feels unfair or incorrect. Yes, it is possible; authorities do make mistakes sometimes. This can be stressful as it may affect cash flow, business operations, or even your ability to plan ahead. However, there is a solution to this, too, as provided by the FTA itself. You can file a VAT Reconsideration Request. This is your official way to request that the FTA review its decision, possibly change it if necessary, or suggest an alternative to you.

Let Tax Gian help you understand the legal process of filing a VAT reconsideration request, with the expertise of our qualified VAT agents in the UAE.

What Is a VAT Reconsideration?

A VAT Reconsideration is a formal request submitted to the Federal Tax Authority. It allows a person or business to challenge a decision made by the FTA. The aim is to get the FTA to review and possibly reverse its earlier judgment.

This is useful if:

•       You believe the FTA made a mistake.
•       You think your case deserves a second look.
•       You want to present new documents or facts.

The UAE gives every taxable person this right under its tax laws.

Who Can Apply?

Anyone who is directly affected by an FTA decision can apply on his/her own or with the help of a VAT agent in Dubai. This includes:

•       Registered businesses
•       Tax agents
•       Tax agencies
•       Legal representatives

You must have a valid reason to file the request. It must be related to a decision made by the FTA that you disagree with.

How to Apply for VAT Reconsideration?

You can apply online using the EmaraTax portal, which is the official system of the FTA or with the help of a VAT agent in the UAE, as the process may be new and unknown to you.

Here is how the process works:

1. Log In to EmaraTax

You can log in using your username and password, or by using the UAE Pass system. If you don’t have an account, you can sign up. If you forget your password, you can reset it.

2. Open the Taxable Person Dashboard

Once logged in, select the taxable person profile. Then click “Other Services” and look for the Reconsideration tile. Click “View All” to see any past requests. Click “New Request” to begin a new one.

Information You Need Before Applying

Before you start filling out the form, make sure you have:

•       The FTA decision reference number
•       A clear reason for requesting reconsideration
•       Supporting documents (in PDF or image format)
•       Legal references, if possible (e.g., FTA laws or guidance)

You will also see a page with guidelines. Read it carefully and confirm that you understand the instructions.

Filling Out the Application Form

When you begin the application, you’ll see that some of your details are already filled in. Check these for accuracy. Then:

•       Select the relevant category of your request.
•       Write the reason why you think the FTA should change their decision.
•       Upload any supporting documents.
•       Mention any legal articles or FTA circulars that support your position.

You can save your form as a draft and return to it later. Once you’re done, move to the Review section.

Review and Submit

Before submitting, review all the information you have entered. Make sure it’s complete and correct. Then:

•       Tick the checkbox to confirm your review.
•       Click “Submit”.

Your request is now sent to the FTA. You will be notified through the portal once a decision is made.

What Happens After You Submit?

After submission:

•       The FTA will review your request.
•       You may receive communication if additional details are needed.
•       The final decision will be posted on your portal dashboard.

Keep checking your EmaraTax account for updates. Staying in touch with a VAT agent in the UAE during the process can be helpful for informed decision making.

Common Reasons for Reconsideration

Some common cases where businesses request reconsideration include:

•       Disagreement over late payment penalties
•       Mistakes in tax return assessments
•       Misunderstanding of input tax claims
•       Denial of tax registration or deregistration

Each case is different, and the FTA will decide based on facts, documents, and tax laws.

Important Things to Remember

•       You must file the request within 40 business daysfrom the date of the FTA decision.
•       Reconsideration is a legal right. But it does not mean the FTA will always change their decision.
•       Be clear and professional in your explanation. If necessary, take assistance from a VAT agent in Dubai.
•       Attach all important documents.
•       Use legal references where applicable.

How can Tax Gian Assist?

VAT Reconsideration gives you a second chance that can go in your favour sometimes. If you believe the FTA made an error, consider using this option with the assistance of VAT agents at Tax Gian. We ensure that you act promptly, provide complete details, and present your side effectively. If your request is reasonable and well-supported, the FTA may reconsider its decision, and Tax Gian will assist you in navigating this process correctly. Choose our expert services without hesitation.