UAE: Updated Voluntary Disclosure (VD) User Guide for VAT & Excise Tax

In February 2022, the Federal Tax Authority ("FTA") updated its VD User Guide for VAT and Excise Tax. Below we provide an overview of the procedures for filing a VD.

What

• A VD is required when a taxpayer becomes aware of an error in a Tax Return, Tax Assessment, or Tax Refund application resulting to:
• Additional tax payable of more than AED 10,000.
• Tax refund amount being more than it should have been.

When

• Within 20 business days from the date of discovery of the error.

How

• Submission of the VD form is submitted on the FTA portal.

Take Note:

A Tax Group VD can only be submitted by:

• Tax Group representative member 
• Last representative member if Tax Group has been deregistered. Other members of the Tax Group can only view the submissions.

A VD can be submitted against:

• Submitted VAT returns.
• Acknowledged VD.
• Acknowledged tax assessments.

An Official letter must be submitted along with the VD providing background and description of the error(s) disclosed.

How can Crowe help?

• Assess the current tax position of the taxpayer.
• Provide guidance on how to properly apply for VD.
• Assist in the preparation and submission of VD.
• Assist in responding to additional requirements of the FTA.