“Understanding FTA’s VAT Administrative Exceptions Guide: Key Insights and Implications”

In the UAE, VAT registrants have the option to avail concessions and exceptions permitted in the VAT Laws and relevant regulations through the VAT Administrative Exception process. By applying for VAT Administrative Exceptions, registrants can enjoy concessions and exceptions granted by Federal Decree-Law No. 8 of 2017 or Cabinet Decision No. 52 of 2017, in cases where challenging circumstances hinder compliance with specific procedural aspects of the Decree-Law or the Executive Regulation.

The Federal Tax Authority (FTA) has recently issued the VAT Administrative Exceptions Guide (VATGX1) providing an overview of eligible categories for submitting exception requests and explaining the fields and information required to complete the form. For further insights on the guide, tax agents in Dubai are available to assist.

Eligibility

To be eligible for making a VAT Administrative Exception Request in the UAE, the applicant must be a registered VAT entity with the FTA. Additionally, they must meet the specific requirements related to the relevant Exception Request and submit all necessary supporting documentation.

Categories

The VAT Administrative Exception covers specific categories for which tax registrants in the UAE can apply. These categories and their underlying conditions are as follows:

Tax Invoices: Registrants can request exceptions from mentioning particulars specified in Article 59 of the Executive Regulation for Tax Invoices, or not be required to issue Tax Invoices in certain cases. The exception will be considered if there are sufficient records available to establish supply particulars, and it would be impractical to issue a tax invoice.

Tax Credit Notes: Registrants can request exceptions from mentioning particulars in Article 60 of the Executive Regulation for Tax Credit Notes or not be required to issue them in certain cases. This exception is allowed if sufficient records are available to establish supply particulars, and issuing a Tax Credit Note would be impractical.

Length of the Tax Period: VAT registrants can request a change in the length of the Tax Period, such as changing to half-yearly filing. This is allowed for individuals, businesses in refund positions, and SMEs, but a valid reason must be provided.

Tax Stagger: Registrants on quarterly filing can request a change in the assigned tax stagger, provided they present valid reasons for the change.

Evidence of Export of Goods: Taxable persons can request permission to use an alternative form of evidence to prove the export of goods. The FTA may specify an alternative form after reviewing the request and considering the nature of the export or goods.

Time for Export of Goods: Registrants may request an extension of time to physically export goods outside the UAE. The request should include actual reasons/circumstances justifying the extension.

VAT consultants in Dubai can provide guidance and assistance for submitting exception requests related to tax credit notes, tax stagger changes, evidence of export, and other relevant matters.

To submit a VAT Administrative Exception Request in the UAE, VAT registrants need to access the concerned person’s Emaratax portal on the FTA’s website. The request can be submitted through this portal, and tax agents in the UAE are available to assist registrants in the process. The VAT Administrative Exception Request in the UAE can be submitted on behalf of the VAT registrants by the following eligible persons:

• The authorized signatory of the registrant.
• The registrant’s appointed tax agent.
• The registrant’s appointed legal representative.
• A representative member in case the applicant is a tax group.

In the Application Form for a VAT Administrative Exception Request, tax registrants are required to provide the following information:

• A description explaining the reason for making the VAT Administrative Exception Request based on the provided criteria.
• A supporting letter that includes a detailed background and presents the set of facts supporting the administrative exception request. It should also provide detailed reasons for the inability to meet the legal requirements, thereby necessitating the exception.
• Any documentary evidence to support the factual and legal grounds on which the request is based. This may include alternative documents, sample invoices, contracts, payment slips, or any other relevant evidence.

Tax registrants in the UAE may find the process of submitting VAT Administrative Exception Requests complex. However, VAT consultants like Trustworth Tax Consultants and Accountants can assist in completing the request in compliance with relevant laws and regulations. With a dedicated team of tax experts, Trustworth provides knowledge and guidance on VAT and updates from the FTA.