Voluntary disclosure

Federal Tax Authority (FTA) has published a new Voluntary Disclosure User Guide. This follows the implementation of the voluntary disclosure feature on the FTA’s eServices portal in June 2020. The guide provides an overview of the process of completing the voluntary disclosure form for Value Added Tax (VAT) and Excise Tax, and submitting it to the FTA

When I should submit a voluntary disclosure??

A voluntary disclosure should be submit by a taxable person to notify the Federal Tax Authority of an error or omission in their tax return, tax assessment, or tax refund application.

voluntary disclosures are required to be made in the following cases:

where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, in an amount of more than AED 10,000;

where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, by not more than AED 10,000 and there is no Tax Return through which the error can be corrected; or

where a filed Tax Refund Application is incorrect, resulting in a calculation of a refund to which the Taxpayer is entitled being more than the correct amount, unless the error was a result of an incorrect Tax Return or Tax Assessment.

The voluntary disclosure must be made within 20 business days of discovering the error or penalties may apply.