The FTA has introduced the VAT 211 Form for making voluntary disclosures. This form is to be used by taxable persons to rectify the errors entered in a VAT return which has already been filed. After logging into the FTA e-services portal, the taxpayer will see an additional tab labelled ‘Submit Voluntary Disclosure’. Upon clicking this tab, the form will open where the reported figures for the period are pre-populated.
The taxpayer can then submit revised figures to rectify errors, and is required to upload a voluntary disclosure letter stating the background facts and a detailed description of the error(s) disclosed as well as the impact on the relevant boxes in the VAT return. Please note that the voluntary disclosure is to be used only if the net value of all errors is greater than AED10,000.
When should a voluntary disclosure be made?A voluntary disclosure should be made by a taxable person to notify the FTA of an error or omission in their tax return, tax assessment, or tax refund application. As per Article 8 of Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures, voluntary disclosures are required to be made in the following cases:
- where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, in an amount of more than AED 10,000;
- where a filed Tax Return or a Tax Assessment is incorrect resulting in a calculation of the Payable Tax being less than required i.e. an underpayment of tax due, by not more than AED 10,000 and there is no Tax Return through which the error can be corrected; or
- where a filed Tax Refund Application is incorrect, resulting in a calculation of a refund to which the Taxpayer is entitled being more than the correct amount, unless the error was a result of an incorrect Tax Return or Tax Assessment.
For details on making a payment based on the voluntary disclosure, please refer to the FTA’s Payment Guide. Penalties may be applied by the FTA depending on the specific situation.
Voluntary disclosures can also be made for Excise Tax returns – please refer to the Voluntary Disclosure User Guide for detailed instructions.