New FTA procedures for reconsideration of decisions announced

January 22, 2022Dated:  | |

The Federal Tax Authority (FTA) has announced new procedures for tax registrants who apply for review and reconsideration of FTA decisions regarding VAT in the UAE. These decisions include those made by the Tax Disputes Resolution Committee, challenge procedures, controls for paying by installment, and the waiving of administrative penalties.  

The Authority asserted that any taxable person has the right to submit a request to the Authority to reconsider any decision issued in connection to them, provided that the request includes reasons and meets the conditions prescribed within 40 business days from the date they were notified of the decision. The Authority will then review the reconsideration request and issue a decision within 40 business days from the date of receiving the application. The authority will inform the applicant of its decision within five business days from the date of issuance of the decision.

Before the amendment, persons were required to pay all relevant outstanding taxes and Penalties related to the matter before being eligible to lodge an objection with the TDRC.From 1 November 2021, persons may submit an application to the TDRC despite not having paid the Penalties imposed, as long as the full amount of tax has been settled, as well as all other conditions are met.

The new amendments also allow the registrants to submit an objection to the Authority’s decision directly to the Tax Disputes Resolution Committee. However, the objection submitted to the committee will not be admissible if:

  1. a reconsideration request has not been previously submitted to the Authority
  2. if the tax in connection with the objection has not been settled
  3. if the objection is not submitted within 40 business days from the date of notification of the Authority’s decision.

According to the new amendments, the final decisions issued by the Tax Disputes Resolution Committee regarding disputes which do not exceed AED 100,000 shall be deemed as executory instruments.

However, the final decisions of disputes exceeding AED 100,000 shall be deemed as executory instruments if they were not appealed before the competent court within 40 business days from the date of notification of the outcome of the objection.

The final decisions of the committee will be enforced through the execution judge at the competent court according to the legal provisions.

The new amendments are expected to advance a series of development and enhancement plans for tax legislation and procedures. The new procedures are intended to improve the efficiency of the tax system, further registrants’ confidence in it, and support taxpayers in fulfilling their tax obligations with easy and transparent procedures.

Starting a business in Dubai requires careful consideration of the VAT rules and regulations, and the assistance of an experienced professional is advised. For the past 17 years, Flying Colour Tax Consultants and FlyingColour Group have been helping clients with all matters related to VAT and accounting in the UAE. Our qualified tax consultants in Dubai can provide you with all details and assistance regarding VAT in the UAE and assist you in starting your dream venture in Dubai. Please feel free to mail your queries at or contact us at +971 4 4542366.

Write a comment