Everything You Must Know About New Amendments to UAE Tax Procedures Law

VAT procedures in the UAE are regulated by Federal Law No. 17 on Tax Procedures, generally known as the Tax Procedures Law. On September 16, 2021, the UAE Cabinet enacted Federal Decree-Law No. 28 of 2021, which changes various aspects of Federal Law No. 7 of 2017 on Tax Procedures (Tax Procedures Law). The modifications were implemented on November 1, 2021. There were some significant modifications to the time restrictions for submitting reconsideration petitions, appeals to the Tax Dispute Resolution Committee challenges to FTA rulings, the time period for filing an appeal with the courts, and so on. The following are the important highlights of the amendments:

Extended Timeline for Applying For VAT Reconsideration
Businesses in the UAE have the right to request VAT reconsideration after 20 business days of being notified of the judgment under previous provisions of the Tax Procedures Law. Whereas now, according to Article 27 (1) of Federal Decree-Law No. 28 of 2021, businesses need to request tax reconsideration within 40 working days of being informed of the FTA's decision in association with the taxable person. VAT consultants in Dubai may assist firms in filing an objection following the new rules. The timeframe extension allows businesses more time to explore relevant measures and develop powerful strategies while pursuing tax disputes.


Changes in the Decision to Reconsider
Previously, the FTA would make a decision on tax reconsideration within 20 business days after receiving an application. According to Article 27 (2) of the amended law, the FTA will decide within 40 business days after receiving the application.
 
Disputes with the TDRC
Taxpayers have 20 working days from the day they were notified of the reconsideration decision to file an objection to the decision. Article 30 (1) of Federal Decree-Law No. 28 of 2021 now allows businesses greater time to object. Applicants may now file an objection to the reconsideration decision with the Tax Disputes Resolution Committee (TDRC) within 40 business days after being notified of the decision.
 
Requirement to Settle Penalties with TDRC
According to the modified laws, taxpayers are no longer compelled to settle the penalty amount when submitting an objection with the TDRC. The only thing that has to be addressed is the tax amount. This will be a relief for firms hoping to go on to the TDRC tier.
 
Appeal to Court
To file an appeal with the Federal Primary Court, one must pay at least half of the fines in dispute. Payments can be made in cash or through an authorized bank guarantee in favor of the FTA.
 
A Special Committee for Penalty Instalment, Waiver, & Refund
The FTA will appoint a special committee to make judgments on petitions for penalty waivers, authorization to pay fines in installments, & penalty repayments. According to Tax Procedures Public Clarification, the Cabinet will shortly publish a resolution outlining the restrictions & procedures that will be used by a new committee to authorize payment of penalties in installments or in whole.

Hire The Best VAT Experts In Dubai, UAE To Implement These Changes To Your Business

Even though the business sector has appreciated the amendments to UAE Tax Procedures Law for their innovative approach to VAT procedures, notably tax reconsideration, they're difficult to implement accurately. As these steps for VAT reconsideration & other tax processes must be properly handled, businesses may incur penalties if any of these processes are not followed appropriately. So it is advisable to seek the assistance of one of the top VAT consultants in Dubai, such as ARC Associates, to boost adaptability, cut operational costs, & reduce the risk of your business's VAT model. As authorized tax agents in UAE, we can assist you in operating your business effectively without leaving any chance for flaws.
Location: United Arab Emirates

Comments

  1. Anonymous17 August 2022 at 00:52

    This comment has been removed by the author.

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  2. Anonymous17 August 2022 at 00:56

    Amazing write up! This blog clearly provides a quick guide for vat consultants in Dubai. Thanks for sharing.

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