How to Apply for UAE VAT Reconsideration

If you run a business in the UAE, you’re probably already familiar with VAT (Value Added Tax). Introduced in 2018, VAT is a 5% tax applied to most goods and services in the country. It’s managed by the Federal Tax Authority (FTA), and staying compliant is a must for all registered businesses. 

But what happens if the FTA makes a decision you don’t agree with – like rejecting your VAT registration, imposing a fine, or assessing tax incorrectly? That’s where UAE VAT Reconsideration comes in. It’s a process that allows you to formally ask the FTA to review and possibly reverse a decision. 

Knowing how VAT reconsideration works can really help protect your business. Whether you’re facing unexpected penalties or think a mistake was made on your tax status, applying for reconsideration could make all the difference. 

However, timely and accurate submission of a reconsideration request is essential, as the FTA stipulates specific procedures and deadlines for such appeals. 

What is VAT Reconsideration in the UAE? 

VAT Reconsideration enables taxpayers to challenge specific decisions made by the FTA concerning VAT issues. This could include disagreements over VAT registration rejections, penalties imposed, or assessments made. By submitting a reconsideration request, the taxpayer seeks a re-evaluation of the FTA’s decision, providing justifications and supporting documents to substantiate their case. 

The FTA is responsible for reviewing reconsideration requests submitted by taxpayers. Upon receiving a valid request, the FTA examines the details, assesses the justifications provided, and determines whether the original decision should be upheld or amended. 

Legal Basis for UAE VAT Reconsideration 

The right to request a VAT reconsideration is grounded in the UAE’s tax legislation. Specifically, Article 27 of the Federal Decree-Law No. 7 of 2017 on Tax Procedures allows any person to submit a reconsideration request to the FTA regarding decisions issued by the Authority. This provision ensures that taxpayers have a legal avenue to seek redress and promotes accountability within the tax system. 

When Can You Apply for VAT Reconsideration? 

You may consider applying for UAE VAT Reconsideration in the following scenarios: 

1. VAT Registration Issues 

If your application for VAT registration or deregistration is rejected—despite meeting the threshold or fulfilling the required conditions, you can request the FTA to review its decision. This is common for new businesses or those closing operations.

2. Penalties and Fines

If you have been issued penalties for late submission of returns, failure to pay VAT on time, or other compliance issues—and you believe these penalties were applied unfairly or due to reasonable circumstances, you can apply for reconsideration. 

3. Tax Assessments 

If the FTA has assessed a higher VAT liability than expected—perhaps due to misunderstanding or errors in your submitted returns, you can request a reassessment with supporting documents.

4. VAT Refund Claims

If your claim for a VAT refund has been partially or fully rejected and you believe you’re entitled to the full amount, a reconsideration request allows you to challenge the decision. 

5. Voluntary Disclosure Rejections 

If you’ve tried to correct an earlier VAT return using a Voluntary Disclosure and the FTA rejected it or imposed a penalty, you can request a review if you have valid justifications or supporting evidence.

6. Errors in Administrative Decisions

Sometimes the FTA may issue decisions that are based on misinterpretation, incomplete data, or technical errors. If you believe any administrative decision has been made unfairly or incorrectly, you have the right to appeal.

7. Input Tax Rejections

If the FTA has disallowed part or all of your input tax claim (for example, claiming VAT on expenses), and you believe the expenses were eligible, you can file for reconsideration with clear documentation and reasoning. 

8. Tax Grouping Application Denied 

If your request to form a VAT tax group with other related companies has been rejected by the FTA, despite fulfilling the conditions, you can seek a review of this decision. 

Timeframe for Filing 

It’s crucial to act promptly. You must submit your reconsideration request within 40 business days from the date you received the FTA’s decision. Missing this deadline may result in your request being rejected. 

This extension from the previous 20 business days was implemented through amendments to the UAE Tax Procedures Law. After receiving your reconsideration request, the FTA is required to review and issue a decision within 40 business days, and notify you of the outcome within 5 business days of issuing the decision.  

If you remain dissatisfied with the FTA’s decision, you may escalate the matter to the Tax Disputes Resolution Committee (TDRC) within 40 business days of receiving the reconsideration decision. 

Eligibility Criteria for UAE VAT Reconsideration 

To apply for VAT reconsideration in the UAE, certain conditions must be met. The Federal Tax Authority (FTA) only accepts requests from individuals or businesses that are directly impacted by a tax-related decision. Here’s who can apply:

1. Registered Taxpayers

Any individual or business that is registered for VAT with the FTA. 

2. Applicants Affected by an FTA Decision 

If the FTA has issued a decision that directly impacts you or your business, such as a rejected registration, a fine, or a denied refund—you are eligible to apply. 

3. Authorized Representatives 

A tax agent or legal representative authorized to act on behalf of the taxpayer may also file the reconsideration request. 

Requirements for Filing a Reconsideration Request 

To submit a reconsideration request, the following criteria must be met: 

Timeframe 

The request must be filed within 40 business days from the date of notification of the FTA’s decision. 

Language 

All applications and supporting documents must be submitted in Arabic. 

Documentation 

Provide all relevant documents supporting the request, such as factual and legal grounds, tax advice received, and any other pertinent evidence. 

Submission Platform 

Requests should be submitted through the FTA’s e-services portal. Registered users can access the “Registered Reconsideration” tab, while non-registered users should use the “Non-Registered Reconsideration” tab. 

How to Apply for UAE VAT Reconsideration? 

If you disagree with a decision made by the Federal Tax Authority (FTA) regarding VAT matters, you can request a reconsideration. Here’s how: 

Step 1: Log in to the FTA e-Services Portal 

• Visit the official FTA website: www.tax.gov.ae 
• Click on “e-Services” and log in with your registered username and password. 
• If you don’t have an account, you will need to register first to access the services. 

Step 2: Access the Reconsideration Section 

Navigate to the “Reconsideration” tab on your dashboard. 

Choose the appropriate option: 

• Registered Reconsideration: For VAT-registered users. 
• Non-Registered Reconsideration: For users not registered for VAT. 

Step 3: Initiate a New Reconsideration Request 

Click on “New Reconsideration Request.” 

Fill in the required details, including: 

• The FTA decision reference number. 
• The category of your request (e.g., penalty, registration). 
• A detailed explanation of why you believe the decision should be reconsidered. 

Step 4: Attach Supporting Documents 

Prepare and upload the necessary documents, such as: 

• A formal letter explaining your case (must be written in Arabic). 
• A copy of the FTA’s original decision you’re disputing. 
• Business trade license, Emirates ID, or any other identification documents if applicable. 
• Additional documents supporting your position (e.g., payment proof, VAT returns, invoices, or any correspondence with the FTA). 

Step 5: Review and Submit 

Carefully review all entered information and attached documents. Confirm that all details are accurate. Submit the reconsideration request. 

Step 6: Await FTA’s Response 

The FTA will review your application and typically respond within 45 business days. You will be notified of the outcome via your registered email or through the e-Services portal. 

For a hassle-free process, consider using professional VAT reconsideration services in UAE to ensure everything is submitted correctly and on time. 

Documents Required for VAT Reconsideration Application 

When submitting a VAT reconsideration request to the UAE Federal Tax Authority (FTA), it’s essential to provide specific documents to support your application. 

Detailed Explanation Letter: 

A comprehensive letter in Arabic outlining the reasons for requesting reconsideration. Include factual and legal grounds, referencing relevant laws or FTA guidelines.  

Supporting Evidence: 

Documents that substantiate your claim, such as: 

• Contracts or agreements related to the transaction. 
• Invoices, payment receipts, or bank statements. 
• Correspondence with the FTA or other relevant parties. 
• Any other documentation that supports your case. 

Copy of the FTA Decision: 

The official decision issued by the FTA that you are contesting.  

Identification Documents: 

• For individuals: A copy of a valid passport or Emirates ID. 
• For businesses: Trade license, VAT registration certificate, and any other relevant business documents. 

Authorization Letter (if applicable): 

If a representative is submitting the request on your behalf, include a notarized Power of Attorney or authorization letter. 

Translation of Documents: 

All documents must be submitted in Arabic. If original documents are in another language, provide certified Arabic translations. 

Make VAT Reconsideration Simple with Professional Support 

Filing for UAE VAT reconsideration is essential if you disagree with a decision from the Federal Tax Authority (FTA), such as a fine, penalty, or VAT registration issue. It’s essential to submit your application on time and make sure everything is accurate to avoid any delays or problems. 

Getting professional help can make the process a lot easier. Tax consultants like Shuraa Tax can help you write your justification letter in Arabic, ensure all your documents are in order, and present your case clearly to the FTA. With the right support, you’ll have a better chance of resolving your issue quickly. 

If you need assistance with VAT reconsideration, feel free to reach out to Shuraa Tax. Our team of experts is ready to guide you and make sure everything is handled properly so you can focus on running your business. 
Contact us today for personalised assistance: 

📞 Call: +(971) 44081900 

💌 WhatsApp: +(971) 508912062 

📧 Email: info@shuraatax.com 

Frequently Asked Questions 

1. What are VAT penalties and reconsiderations in Dubai? 

VAT penalties are fines imposed by the Federal Tax Authority (FTA) for non-compliance, such as late returns or payments. Reconsideration is the process of requesting the FTA to review and possibly reverse a decision or penalty. 

2. Can I apply for VAT penalty reconsideration in Dubai? 

Yes. Both registered and non-registered individuals or businesses affected by an FTA decision can apply for reconsideration within 40 business days of receiving the decision. 

3. How do I apply for VAT reconsideration? 

Submit your request through the FTA’s e-Services portal. Registered users should use the “Registered Reconsideration” tab, while non-registered users can access the “Non-Registered Reconsideration” section. 

4. What is the deadline to submit a reconsideration request? 

You must file the reconsideration request within 40 business days from the date you were notified of the FTA’s decision. 

5. Can I request a penalty waiver along with the reconsideration? 

Yes. You can submit a penalty waiver request alongside your reconsideration application if you believe the penalty was unjust or due to valid circumstances. 

6. What happens if I’m not satisfied with the FTA’s reconsideration decision? 

If you’re dissatisfied with the outcome, you can escalate the matter to the Tax Disputes Resolution Committee (TDRC) within 40 business days of receiving the reconsideration decision.