FTA Tax Clarification Process for Professionals

In continuation of my previous article, the UAE Federal Tax Authority (FTA) has released attached Public Clarification VATP044, offering much-needed clarity on self-invoicing and documentation requirements for recovering input VAT on imported services. Here are the key takeaways simplified for you: ✅ Self-Invoicing is Mandatory If you're a VAT registrant receiving services from overseas, you're considered to be supplying the service to yourself. That means you must issue a valid tax invoice to yourself—unless an exception applies. 📄 What exceptions are available? To ease the burden, the FTA allows you to skip self-invoicing if: - You retain the supplier’s invoice showing the service details and payment. - You correctly apply the reverse charge mechanism. - You keep sufficient records to support the transaction. 📌 What if there’s No Supplier Invoice? In rare cases (e.g., reinsurance), if no invoice is issued by the supplier, a combination of documents showing key details as provided in the clarification may be accepted. 📒 But if even that’s missing, you must apply for an administrative exception under Article 59(7). ⚠️ Penalty Alert Failure to prove or obtain an exception when required may result in a penalty of AED 2,500 for each detected case. 💡 Bottom Line You can still recover input VAT without self-invoicing, provided you meet the documentation and compliance requirements. #UAEVAT #FTAUpdate #TaxCompliance #VATClarification #ReverseCharge #InputVAT #SelfInvoicing Grant Thornton - UAE Imran Mushtaq, PhD Charlotte Stanley

The Federal Tax Authority (FTA) has released an updated Private Clarifications Guide as of July 2025. This revised version incorporates FTA Decision No. 2 of 2025, bringing greater clarity to the process by distinguishing between cases where Private Clarification requests will be rejected and those where they may be rejected. The guide aims to enhance transparency, efficiency, and taxpayer awareness regarding clarification procedures. The new edition spans 25 pages and includes detailed criteria, processes, and examples to support accurate submissions. 📘 Private Clarifications | Tax Procedures | TPGPC1 -July 2025 أصدرت الهيئة الاتحادية للضرائب الدليل المحدث لطلبات التوضيح الخاصة في يوليو 2025، متضمناً القرار رقم (2) لسنة 2025. يميز الدليل الجديد بين الحالات التي يتم فيها رفض طلب التوضيح الخاص بشكل مؤكد وتلك التي قد يتم فيها الرفض، مما يعزز من الشفافية والكفاءة ووعي دافعي الضرائب بالإجراءات المعتمدة. يشمل الدليل المحدث 25 صفحة ويوفر شرحًا تفصيليًا للمعايير والإجراءات والنماذج الداعمة لتقديم الطلبات بشكل دقيق. 📘 طلبات التوضيح الخاصة | الإجراءات الضريبية | TPGPC1 – يوليو 2025 #FTA #UAE_Tax #PrivateClarification #TaxProcedure #FederalTaxAuthority #الهيئة_الاتحادية_للضرائب #الضرائب_في_الإمارات #التوضيح_الخاص #الإجراءات_الضريبية

The FTA recently published Public Clarifications TAXP008, which contains some important findings regarding the differences between tax assessment review and tax and reconsideration. Firstly, tax assessment review is an earlier stage of the quasi-appeal process than reconsideration. In other words, once the reconsideration request is filed, the doors for tax assessment review are shut. Secondly, no new information or documents can be provided during the tax assessment review, and the review is limited only to explanations, information and documents collected "during the tax audit". If a taxpayer wishes to provide some new documents then reconsideration should be requested. That leads to the following crucial observations: ➡️ It is important for a taxpayer to identify when the tax audit started. Sometimes, certain information is gathered by the FTA during the pre-audit stage, when no formal audit notification is yet issued (e.g. during the tax refund process). ➡️ The taxpayer should provide ⚠️ ALL possible documentation and information (including all calculations) during the tax audit phase ⚠️With this taxpayer allows himself access to the additional "appeal" stage - tax assessment review. Request for assessment reviews should be sent to the email: 🔶 AssessmentReview@tax.gov.ae 🔶 I recommend not depriving your organisation and client of an additional stage (tax assessment review) because some documents were not provided during the tax audit. Like in any other jurisdiction, during the tax audit please: 🟢 Establish a dialogue with tax officers handling your case; 🟢 Understand why certain information and documents are requested; 🟢 In case of disagreement on the interpretation of the law, lay out your reasoning as clearly and plainly as possible so it can be easier to accept by the officer. The number of taxpayers subject to audit will only increase going forward, hence correct policy and strategy is crucial to safeguard taxpayers' interest and potentially save material amounts that can be assessed. 👉 "Prevention is better than cure" - Desiderius Erasmus. #taxaudit #taxp008 #uaetax #fta #auditstrategy

CTP006 issued on 3 July 2025 : Corporate Tax Late Registration Penalty : Public Clarification on Waiver from FTA The FTA has issued Clarification CTP006, guiding us on the procedure & that late registration penalties for Corporate Tax can be automatically waived, provided certain conditions are met. 📌 Key Conditions: ✅ File the CT Return / Annual Declaration (as applicable) within 7 months from the end of the first tax period — not 9 months. ✅ If the penalty is unpaid, the waiver will apply automatically. ✅ If the penalty is already paid, the amount will be credited to your EmaraTax CT account, usable against future CT liability or refundable. 🏢 For Tax Group members, the CT Group Return must also be filed within 7 months for the member's penalty to be waived. 🗓️ What About the Corporate Tax Payment Due Date? As per Article 48 of the CT Law, payment of Corporate Tax can be made within 9 months from the end of the tax period. This timeline is independent of the return filing deadline under Article 53. 📌 The FTA, in Clarification CTP006, has not specified payment within 7 months as a pre-condition for the late registration penalty waiver. So the taxable person can take the call on the payment, consciously. 👥 Eligible Persons Include: - Any person (natural person, juridical person or other) required to file a CT return - Persons who may later join or form a Tax Group - Qualifying Public Benefit Entities under Cabinet Decision No. 37 of 2023 - Exempt Persons under Article 4(1)(f)–(i), whose exemption was approved after registration ⚠️ Important Notes: If a reconsideration request is already under review, it becomes null and void under this initiative. If the penalty was already waived through a prior reconsideration, this waiver initiative does not apply to the,. 📎 Attachment: Illustrations of late CT registrations potentially eligible for penalty waiver under FTA Clarification CTP006, issued on 3 July 2025. reach us out, for more information Choose Difference maker... Choose DSB Chartered Accountants #CorporateTaxUAE #CTWaiver #FTACircular #CTP006 #EmaraTax #FTAUpdate #UAECompliance #TaxUpdate #CorporateTax

🚫 The Clarification service is not an advisory service – and the FTA will, generally, not address hypothetical scenarios. 🧾 Even after a sleepless night on a flight, I’m using my connection time wisely to share the news with you. Private Clarification - July 2025 update is here — and it changes the game. 📌 What’s new? ✅ A crystal-clear split between “will be rejected” vs “may be rejected” cases ✅ You must be a registered Tax Agent for that tax type (CT ≠ VAT) ✅ Your case must involve real, actual facts – not assumptions or future ideas ✅ FTA can invalidate Clarification ab initio if facts change, or assumptions are not met ✅ Joint requests allowed, but only in exceptional cases ✅ Refund rules finally explained in detail 🕒 Timing alert: The FTA has increased the response window to 60 business days (was 50 before). 👉 If they request more info — the 60 days start from the date you submit it. ⚖️ For complex matters involving other authorities, even more time may be taken. ⚠️ Pro tip: FTA won’t tell you if you’re eligible or if your treatment is “correct”. You must: 🔍 Frame a genuine uncertainty 📑 Provide your legal analysis 🔄 Compare with an alternative treatment 📎 They even published a standard format for your cover letter (yes, finally!). 🧠 So if you’re a tax agent or compliance head preparing a submission — be technical, be factual, be real. And if you’re unsure, get help before you submit. ✍🏻 From your most profAssional accountant and registered Tax Agent💄 #FTA #UAEtax #CorporateTax #TaxClarification #RedLipstickSeries #Compliance #TaxTips