- The UAE Federal Tax Authority (FTA) published Decision No. 8 of 2024 on November 1, 2024, outlining the mechanism for taxpayers to correct errors or omissions in their VAT returns.
- The Decision became effective on January 1, 2025.
- Taxpayers must submit a Voluntary Disclosure (VD) to correct errors or omissions in their VAT returns, even if the correction does not result in a difference in the tax due.
- The FTA has outlined specific scenarios where no difference in the due tax arises despite errors or omissions in VAT returns, including misreporting of standard-rated, zero-rated, and exempt supplies.
- Previously, taxpayers could correct errors below AED 10,000 in the subsequent quarter’s VAT return.
- Effective January 1, 2025, taxpayers must file a VD even when the tax value of the error is zero, provided the error falls within the scenarios listed above.
- The threshold of AED 10,000 remains in place for errors exceeding that amount.
- Businesses are advised to review their VAT submissions and take corrective measures to align with the updated guidelines.
Source: mailchi.mp
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
