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VAT Voluntary Disclosure

Our service helps your business proactively correct past VAT errors with tax authorities. By managing the Voluntary Disclosure process, KWS significantly reduces potential penalties and helps you avoid lengthy audits. We handle the complexity to ensure your business achieves quick compliance and peace of mind.

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WHAT IS VAT VOLUNTARY DISCLOSURE ?

The FTA VAT Voluntary Disclosure UAE is a formal mechanism that allows a taxable business to proactively correct errors or omissions in previously submitted tax records. This form, commonly known as VAT211, is provided by the Federal Tax Authority (FTA).

The Taxpayer uses this formal process to officially notify the FTA of an error or mistake found in a previously filed:

  • Tax Return
  • Tax Assessment
  • Tax Refund application

When you should submit a VAT Voluntary Disclosure Form?

1 . A VAT Voluntary Disclosure (VAT211) is used when a taxpayer becomes aware of an error or omission in a previously filed Tax Return, Tax Assessment, or Tax Refund application.

2 . The decision to submit the form is generally determined by the monetary threshold of the error :

  • Mandatory Submission (You MUST Submit) : If the error or omission results in an impact on the Payable Tax that exceeds AED 10,000, you must submit a VAT Voluntary Disclosure form to the FTA to correct the error immediately.
  • Optional Correction (You MAY Correct in Next Return) : If the impact on the Payable Tax is AED 10,000 or less, you may choose to correct the error in the subsequent VAT Return instead of submitting a Voluntary Disclosure form.

When you should NOT submit a VAT Voluntary Disclosure?

A Business is not legally obligated to file a Voluntary Disclosure (VAT211) if the total amount of underpaid tax resulting from the error is AED 10,000 or less. In these minor cases, the error can instead be corrected directly in the Tax Return for the current tax period, provided the adjustment is made without undue delay. Even for small amounts, always engage a specialist like KWS to accurately confirm the error value before taking action.

Businesses need to ensure accurate and timely VAT submission to the FTA.

While mandatory submission is essential, any necessary correction via the Voluntary Disclosure process requires keen consideration of multiple legal factors. Given the complex nature of the FTA laws, it is highly recommended to obtain professional advice from registered tax consultants like KWS. We assist in calculating the error, determining the correct course of action, and submitting the VAT Voluntary Disclosure to the FTA. If you have discovered an error, do not panic; let KWS handle your VAT compliance matters to ensure all potential consequences are correctly considered and addressed.