Even businesses with established accounting procedures can discover VAT issues after submitting a return.

What matters is identifying the issue, determining the appropriate corrective procedure and addressing it correctly.

Correcting VAT Issues

When an error is discovered, businesses should determine its nature, affected Tax Period and the appropriate correction mechanism.

Depending on the circumstances, a voluntary disclosure may need to be considered.

VAT Refunds

Businesses may also find themselves in a position where a VAT refund may be available.

Records supporting the amounts involved should be complete and consistent before a claim is made.

VAT Deregistration

A business's VAT obligations may change if its activities cease or its circumstances otherwise meet the relevant deregistration requirements.

The FTA currently states that where submission of a VAT deregistration application is mandatory, it must be submitted within 20 business days from when the deregistration obligation started.

Review Before Taking Action

VAT corrections, refunds and deregistration can have different requirements depending on the circumstances.

Eccuracy can help businesses review their VAT records and determine appropriate next steps.

This article is provided for general informational purposes and does not constitute tax, legal or professional advice. UAE tax legislation and administrative requirements may change. Businesses should assess the rules applicable to their specific circumstances.