What are the Common Errors to Avoid While Applying for VAT Administrative Exceptions?

The land of the UAE has become one of the fertile grounds for the businesses. The entrepreneurs from all over the world would look forward to setting up their establishment in the UAE due to the tax-friendly environment and the business-friendly regulations implemented by the authorities. In order to enhance the business friendliness and to streamline the tax structure, the FTA and the relevant authorities have been implementing new tax regulations and important amendments that further make the land more attractive. VAT Administrative Exceptions is one such provision that allows the registrants to get the exception or concessions.

The FTA has issued the guide stating the procedures and the eligibility for the exceptions. Apart from that, the FTA has further included the common errors that have been noted while receiving the applications from the registrants, which the future registrants can avoid. This blog includes the list of such common errors. 

The Common Errors Made 

Here is the list of the common errors that are made by the registrants and that must be avoided when applying for the exception requests:

o There are chances where the registrants may submit the applications under the wrong category, which must be avoided.

o There are situations where the registrants would apply for the waiver from an administrative or legal requirement apart from the eligible cases, which are explained in the guide, which must be avoided.

o Where the VAT refund is requested as a part of the VAT administrative exception, it must be avoided.

o When the application is made without providing the appropriate documents, background information, or supporting evidence in the cover letter, then it would be rejected.

o Where the application is submitted related to the tax invoice issuance, for any export of services, that must be avoided

o Where the application is made for the VAT registration exceptions, the request would be rejected.

o Where the member applies instead of the representative member of the tax group, then it would be rejected.

o Where the natural person applies for the exception related to the legal person

o Where the tax agent applies but is only listed for the direct tax purposes, then it would be rejected.

o When the request is made on behalf of any person who is not registered under the VAT

The above listed are some of the common errors that have been noted by the FTA and have been included in the guide to assist the registrants to avoid the same errors and to ensure that the application is accepted successfully. 

What is the role of CDA in VAT administrative exceptions?

CDA, being one of the leading accounting, auditing, and tax consultancy firms in the UAE, has been providing the best tax consultancy and assistance to its vast clientele. The entities struggling with the tax-related matters, whether it be VAT or CT, can approach the personalized experts of CDA, who will assist you in devising the proactive strategies to ensure compliance, accuracy, and transparency. The experts can assist the entities in identifying the eligibility under the VAT administrative exceptions and identify the eligible cases for which the exceptions can be availed and hence would assist in avoiding the above-listed errors whereby the application can be submitted successfully and the benefits can be received.

To know more about the services, connect our experts today!

Mitesh Maithia

Tax Manager

Mitesh is a Tax Professional with expertise in direct, indirect, and international taxation, including transfer pricing, since 2018. Passionate about making complex tax matters simple, he shares insights to help businesses stay compliant and forward-looking.