Received An FTA Penalty Or Found A Filing Error? Resolve It Decisively!
We handle ongoing tax return filings and other regulatory submissions, keeping your company compliant with local laws.
The KSB Advantage
Correcting tax filings or contesting official decisions requires detailed legal knowledge, precise financial calculations, and formal Arabic documentation. Located at Aspin Commercial Tower, Office 4816, Sheikh Zayed Road, Dubai, KSB Consultancy oversees your entire resolution workflow.
Addressing tax errors or penalties promptly ensures your corporate entity maintains compliance credibility before the FTA.
Complete bilingual support, managing full technical preparation and formal Arabic translation for statutory submissions.
Strategic case management to minimize penalty exposure under Cabinet Decision No. 40 of 2017, as amended, most recently by Cabinet Decision No. 129 of 2025, or contest unjustified assessments.
Voluntary Disclosure vs. Reconsideration
While both processes address discrepancies in your tax standing, they serve distinct regulatory functions:
| Feature | Voluntary Disclosure (VD) | Administrative Reconsideration |
|---|---|---|
| Purpose | Self-correcting reporting errors before FTA detection. | Formally appealing an official FTA penalty or assessment decision. |
| Trigger | Discovered underpaid VAT or overclaimed input tax. | Receipt of an official FTA penalty notice or decision letter. |
| Time Limit | Within 20 business days of identifying an error above AED 10,000. | Strictly within 20 business days of receiving the decision notice. |
| Language | Portal submission via EmaraTax. | Submitted via the EmaraTax portal strictly in Arabic. |
| Penalty Rate | Reduced rate of 1% per month on unpaid tax amounts. | Seeks total or partial waiver of imposed fines under Cabinet Decision No. 40 of 2017. |
Voluntary Disclosure Services (Form VAT211)
Under Cabinet Decision No. 40 of 2017, self-disclosing filing errors before an FTA audit carries a significantly reduced penalty of 1% per month on the underpaid tax amount, compared to the 15% flat penalty imposed when the FTA identifies errors during an audit.
Reporting Windows
Errors exceeding AED 10,000
Must be self-disclosed using Form VAT211 within 20 business days of discovery.
Errors of AED 10,000 or less
May be corrected directly in the subsequent periodic VAT return, provided the return is submitted on time.
Our Voluntary Disclosure Process
1. Error Audit: We review historical ledgers to calculate exact variance figures between reported and actual liabilities.
2. Technical Reporting: We draft a formal narrative explaining why the discrepancy occurred and detailing the corrected position.
3. EmaraTax Submission: We lodge Form VAT211 along with supporting ledgers and tax invoices.
Administrative Reconsideration Services
If your enterprise receives an unjustified penalty notice, assessment, or refund rejection, you hold the statutory right to request a formal review by the FTA under Article 29 of Federal Decree-Law No. 28 of 2022 on Tax Procedures.
Key Requirements
Strict 20-Day Window
Applications must be lodged within 20 business days of receiving the FTA notice. Late applications are automatically rejected.
Mandatory Arabic Submission
The reconsideration application, legal grounds, and all supporting evidence must be translated into technical Arabic.
Sequential Appeal Rights
Reconsideration represents the mandatory first step in tax dispute resolution. You cannot appeal directly to the Tax Disputes Resolution Committee (TDRC) without completing this stage.
Our Reconsideration Process
1. Decision Analysis: We evaluate the FTA notice to identify valid legal and procedural grounds for challenge.
2. Evidence Compilation: We organize commercial contracts, payment receipts, bank statements, and tax invoices.
3. Arabic Legal Preparation: Our specialists draft the formal Arabic submission setting out clear technical arguments.
4. Authority Representation: We manage all follow-up communications and clarification requests with the FTA review committee.
Frequently asked questions
What is the deadline for filing an FTA VAT reconsideration application?
The application must be submitted within 20 business days from the date your business receives official notification of the FTA's decision or penalty notice under Article 29 of Federal Decree-Law No. 28 of 2022.
What penalty applies if an error is self-disclosed via Voluntary Disclosure?
Under Cabinet Decision No. 40 of 2017, voluntary disclosures incur a reduced penalty of 1% per month on the unpaid tax, calculated from the original filing due date to the submission date.
Can an administrative reconsideration application be submitted in English?
No, the FTA requires all reconsideration applications, legal statements of grounds, and supporting evidence files to be submitted entirely in Arabic.
What happens if the FTA rejects an administrative reconsideration application?
If the FTA upholds its decision, the business can escalate the dispute by filing an appeal with the independent Tax Disputes Resolution Committee (TDRC) within 20 business days, provided statutory conditions are met.
Can a business submit a Voluntary Disclosure while an FTA audit is ongoing?
No, once the FTA issues an official audit notification, the option to file a Voluntary Disclosure for that tax period is closed, and audit penalties will apply if errors are found.