How to Request a Reconsideration for VAT Penalty

Introduction

If your business has received a VAT penalty from the Federal Tax Authority (FTA) that you believe is unfair or incorrect, you have the right to challenge it through a formal process called a Reconsideration Request.

It explains how to request a reconsideration for a VAT penalty, including the steps, deadlines, required documents, and expert tips to improve your chances of success.

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🧾 What is a Reconsideration Request?

A Reconsideration Request is a formal appeal submitted to the FTA when a taxpayer disagrees with:

• A tax assessment,

• An administrative penalty,

• A rejection of refund or registration request, or

• Any other FTA decision.

The request asks the FTA to reassess its decision based on the information and justifications provided by the taxpayer.

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🛠️ When Should You File a Reconsideration?

You should consider filing a request when:

• You believe the penalty was wrongly applied

• You made an unintentional error with reasonable cause

• You have supporting documents proving your case

• You believe there is legal or procedural misinterpretation by FTA

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⏰ Reconsideration Request Deadline

The Reconsideration Request must be filed within 20 business days from:

• The date you received the penalty or decision from the FTA

⚠️ Missing this deadline can result in automatic rejection of your request.

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📥 How to File a Reconsideration Request (Step-by-Step)

🔹 Step 1: Prepare the Request

Include the following:

• Details of the penalty or decision being challenged

• Reason for the request

• Legal and factual justifications

• Reference to relevant VAT laws or FTA guides

• All supporting documents in PDF format (e.g., invoices, bank statements, correspondence)

🔹 Step 2: Translate the Request (if in another language)

• The entire submission must be in Arabic.

• You may need to engage a legal translator.

🔹 Step 3: Submit on the EmaraTax Portal

• Log in to: https://eservices.tax.gov.ae

• Go to: Reconsideration Services

• Complete the Form DRR01

• Attach your Arabic-formatted request and documents

• Submit and note the acknowledgment number

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📄 Documents to Attach

• Copy of FTA penalty notice or decision

• Power of attorney or authorization letter (if submitted by a representative)

• Tax returns or relevant reports

• Contracts, invoices, or legal documents

• Your written justification in Arabic

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🕒 What Happens After Submission?

• The FTA will review and issue a decision within 20 business days of receiving your request.

• You may receive:

o Approval (penalty waived/reduced)

o Rejection (explained with legal reasoning)

✅ You can escalate a rejected request to the Tax Disputes Resolution Committee (TDRC) within 20 days of rejection.

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✅ Tips for a Successful Reconsideration

• Act within the 20-business-day deadline

• Present your case clearly and professionally

• Use strong legal references from UAE VAT Law and FTA clarifications

• Include complete and organized documentation

• Keep a record of submission acknowledgment

• Seek assistance from a Registered Tax Agent if unsure

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📍 Real-World Example

Case: A Dubai-based business was fined AED 10,000 for late VAT registration.

Action: Filed a Reconsideration Request citing system delays, attached evidence, and legal basis.

Result: Penalty reduced to AED 1,000 due to reasonable cause.

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🤝 How We Can Help

Sheikh Anwar Accounting and Auditing LLC offers:

• Drafting of Arabic reconsideration submissions

• Preparation and organization of required documents

• Submission through EmaraTax portal

• Appeal strategy for rejected requests

📧 Contact: info@sa-auditors.com

🌐 Visit: www.sa-auditors.com