VAT Voluntary Disclosure

What is VAT Voluntary Disclosure?

VAT Voluntary Disclosure is a process facilitated by the Federal Tax Authority (FTA) in the UAE that allows registered businesses to voluntarily report any errors, omissions, or incorrect treatments made in previously submitted VAT returns or refund claims.

The official form used for this is Form 211. Filing this form correctly ensures that any tax discrepancies are resolved proactively, avoiding unnecessary legal or financial consequences.

When Should You Submit a VAT Voluntary Disclosure?

• If your submitted VAT return resulted in underpaying tax, and the difference exceeds the FTA’s threshold.
• If your VAT refund claim was inaccurate and overstated the amount due.
• If your declared tax was higher or lower than the accurate amount due to errors or misinterpretation.
• If your VAT treatment of a transaction was incorrect, leading to incorrect tax calculations.

In all these situations, submitting a VAT Voluntary Disclosure in the UAE ensures that your tax records are corrected in compliance with FTA regulations.

Understanding the Penalties

While voluntary disclosures are encouraged, there are associated penalties based on when the disclosure is submitted:

• First-time submission: Fixed administrative penalty applies.
• Repeated submissions: Higher administrative penalty enforced.
• Before audit notification: Lower percentage-based penalty on unpaid tax.
• After audit notification but before audit: Mid-range percentage penalty applies.
• After audit: Higher penalty percentage on the undisclosed tax amount.

These guidelines help reinforce the importance of timely disclosure. Noraal ensures that every disclosure is carefully handled to minimize risk and comply with legal standards.

Why Choose Noraal for VAT Voluntary Disclosure?

Our specialized team assists in identifying discrepancies in your VAT returns or refunds, advises on the correct submission of Form 211, and communicates directly with the FTA on your behalf.

Noraal stands as a reliable VAT compliance partner in the UAE, dedicated to helping you avoid complications through accurate VAT Voluntary Disclosure processes. Whether you’ve made an error in calculation or filing, our team is here to ensure a swift resolution and full compliance.