FTA has introduced a new section in FTA Vat return
FTA has introduced a new section in FTA Vat return, after submitting the VAT return, it asks for “Voluntary disclosure” which needs to be submitted if there is any error in VAT Return and attach the supporting documents for that i.e a letter on company’s letter head explaining the background facts and figures and other supporting documents.
So from now onwards, FTA is not just going to rely on figures, instead it will dig further to identify erros and penalize the companies for deception ti FTA or mistakes in VAT return.
Following two penalties shall be applied in case of errors in VAT Return.
Failure of a business to voluntarily disclose errors in a tax return, tax assessment, or refund application before a tax audit.
Three penalties are applied:
1. (AED3,000) for the first time
2. (AED5,000) in case of repetition
3. 50% of the amount unpaid to the Authority due to the error.
So it is strongly advised to get your VAT Return filed by appropriate tax consultants to avoid penalties and fines from FTA