Many entities make the mistake of combining multiple transactions and recording a single line item
The Federal Tax Authority (FTA) will start charging companies for “private clarification” from Thursday, June 1, 2023, it was announced today.
The authority explained that the fees will be charged for submitting a request to seek further information and clarification related to one tax, or to more than one tax issued by the FTA. This will come in the form of a document stamped and signed by the FTA in relation to specific tax technical matters and for a specific taxpayer.
“Private clarification” is a request that the taxpayer submits using the specific form for that purpose on the authority’s website, along with the documents attached to that form.
The authority will charge the fee as part of the implementation of Cabinet Decision No. 7 of 2023.
The authority explained that as per the new decision, the FTA may refund the fees incurred for a “private clarification” request to the applicant in the cases it does not issue the clarification required.
The FTA confirmed that taxpayers can avail of the two services through its website, where users need to register, submit the required supporting documents, and pay the fees specified in Cabinet Decision No. (65) of 2020 and its amendments.
According to tax consultant Crowe, the services fee for clarification requests pertaining to a single tax is Dh1,500 and Dh2,250 for more than one.
“We understand that ‘tax’ pertains to the applicable taxes in the UAE, i.e., VAT, Excise Tax and Corporate Tax… Considering the additional fees involved in requesting a ‘Private Clarification’, it is recommended to submit the request prior to its effective date of June 1, 2023,” it said on its website.
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