VAT Voluntary Disclosure Form 211 in UAE

Voluntary Disclosure VAT 211 Form UAE: What is it?

The Federal Tax Authority (FTA) offers a form called a Voluntary Disclosure, which allows taxpayers to voluntarily inform the FTA of an error or omission in a prior Tax Return, Tax Assessment, or Tax Refund application.
Businesses should keep track of any overdue taxes since failing to do so might result in fines and interest charges. The voluntary disclosure VAT 211 form UAE is made to assist businesses in finding any unreported taxes and payments and to guarantee that the right amount of tax is paid.

When should a VAT Voluntary Disclosure Form be presented?

A VAT Voluntary Disclosure Form should or can be utilized by taxpayers and presented to the FTA in certain circumstances. In principle, this would be in situations when a taxpayer discovers a mistake or absence in a VAT return, VAT assessment, or VAT refund application, as described below:

• If you discover that a VAT return you filed to the FTA or a VAT assessment you received from the FTA is inaccurate, resulting in a Payable Tax computation that is lower than the value, you must file a VAT Voluntary Disclosure to fix the problem.
• If you discover that a VAT refund application you filed to the FTA was inaccurate and that the reimbursement sum that you are entitled was calculated incorrectly, you must make a Voluntary Disclosure to rectify the issue.
• You may file a VAT Voluntary Disclosure to amend a mistake in a VAT return you filed to the FTA or a VAT Assessment you received from the FTA that resulted in a computation of the Payable Tax being higher than it ought to be.

Penalty levied on Voluntary Disclosure in UAE

The FTA will impose penalties if you use the Voluntary Disclosure Form. There will be two sorts of Voluntary Disclosure fines imposed:

• Fixed Penalty for Voluntary Disclosure
• Percentage-Based Penalty for Voluntary Disclosure

Submission deadline for a VAT Voluntary Disclosure

If the mistake or omissions are reflected in a computation of due tax that is less than the necessary amount by more than AED 10,000, the taxable person must make a voluntary disclosure inside 20 working days of becoming informed of the discrepancy. Businesses need to make sure that their VAT returns are filed in accordance with FTA regulations. This will reduce the need to use the VAT Voluntary Disclosure Form 211 to avert VAT financial penalties. All taxable businesses must file their VAT returns on schedule and precisely according to the FTA’s guidelines.