VAT Penalty Review & Appeals in UAE

Facing FTA VAT Penalties? AEY Can Help You Review, Appeal & Comply

VAT regulations in the UAE are strictly enforced, and even minor errors in filing or documentation can lead to severe VAT tax penalties issued by the Federal Tax Authority (FTA). If you’ve received a notice or fine and aren’t sure how to respond, you’re not alone—and you’re not without options.

At AEY Accounting LLC, we provide expert VAT tax preparation & filing in UAE and full assistance for businesses needing VAT penalty review and appeal services. From Dubai to Abu Dhabi and Sharjah, our specialists support clients with compliance audits, documentation, and FTA submissions.

Whether you’re a startup, SME, or enterprise, our vat compliance UAE service is designed to help you avoid errors, respond to penalties correctly, and recover your standing with the FTA.

Understanding VAT Penalties in the UAE

The VAT penalty structure in UAE is defined by the FTA and includes administrative fines and recurring daily/percentage-based penalties. These can be imposed for:

  • Late VAT registration
  • Late or incorrect VAT filing
  • Inaccurate or missing invoices
  • Invalid VAT refund claims
  • Non-compliant recordkeeping
  • Delays in payment of due VAT

Key VAT Penalties in UAE

Offense FTA Penalty Amount
Failure to register for VAT AED 10,000
Late VAT return submission AED 1,000 (1st instance), AED 2,000 (repeats)
Late payment of VAT 2% of unpaid tax immediately, +4% monthly after 1 month
Incorrect VAT filing AED 3,000–5,000 per return
Failure to issue tax invoice AED 5,000 per invoice
Failure to maintain records AED 10,000–20,000

If you’ve received an FTA notice, AEY will help you evaluate, respond, and appeal if necessary—within the legal timelines.

 VAT Penalty Risk Assessment
  • Analyze VAT filing history and payment records
  • Cross-check against UAE VAT compliance checklist
  • Identify root causes for penalties and missed obligations
  • Assess appeal eligibility based on FTA guidelines
 VAT Penalty Appeal Preparation
  • Draft official Reconsideration Request to the FTA
  • Submit all supporting documentation and legal references
  • Prepare statements explaining cause and justification
  • Liaise with FTA representatives on your behal
Compliance Correction & Filing
  • Revise incorrect VAT returns (Form 211, Voluntary Disclosure)
  • Update invoice formats, payment logs, and ledger entries
  • Support VAT refund reclaims where applicable
  • Monitor appeal status and track FTA responses

AEY’s VAT Penalty Review & Appeals Services

If you’ve received an FTA notice, AEY will help you evaluate, respond, and appeal if necessary—within the legal timelines.

 VAT Penalty Risk Assessment
  • Analyze VAT filing history and payment records
  • Cross-check against UAE VAT compliance checklist
  • Identify root causes for penalties and missed obligations
  • Assess appeal eligibility based on FTA guidelines
 VAT Penalty Appeal Preparation
  • Draft official Reconsideration Request to the FTA
  • Submit all supporting documentation and legal references
  • Prepare statements explaining cause and justification
  • Liaise with FTA representatives on your behal
Compliance Correction & Filing
  • Revise incorrect VAT returns (Form 211, Voluntary Disclosure)
  • Update invoice formats, payment logs, and ledger entries
  • Support VAT refund reclaims where applicable
  • Monitor appeal status and track FTA responses

Sample VAT Penalty Review Dashboard

Compliance Area Client Status AEY Action
VAT Return Filing 3 late filings in 12 months Applied for penalty waiver
Invoice Format Missing TRN & Date Updated all templates
Payment Timeliness Delayed by 9 days Requested justification letter from bank
Voluntary Disclosure Submitted? No Drafted and submitted Form 211
FTA Reconsideration Filed? Pending Submitted full appeal pack

Benefits of Filing a VAT Appeal in UAE

  • Penalty Reduction or Waiver
  • Avoidance of Accrual Interest
  • Restored compliance credibility
  • Time to correct documentation errors
  • Opportunity to disclose voluntarily

 

The FTA provides a 20-business-day window to file a Reconsideration Request from the date the penalty is issued. AEY ensures your appeal is complete, professional, and supported by proper documentation.

Our VAT Compliance UAE Tax Service

Beyond appeals, we ensure your future filings and operations are aligned with FTA expectations.

 Included in Our Compliance Package:
  • TRN verification and VAT registration
  • Real-time VAT filing (Form 201)
  • Compliance with UAE VAT compliance checklist
  • Invoice and record formatting review
  • Internal staff training for ongoing accuracy
  • Year-round support and audit preparation

Pricing – VAT Penalty Review & Appeals Support

Service Ideal For Starting From (AED)
Penalty Risk Assessment Businesses unsure about fines 1,000
VAT Appeal Submission Received FTA penalty or notice 2,500
Voluntary Disclosure Drafting Mistakes in past returns 1,800
Full VAT Compliance Audit + Filing Quarterly support, appeal + compliance 5,500 / year

Custom pricing available for complex penalty cases or high-volume filings.

Local Support Across the UAE

Our team of VAT specialists works closely with businesses in:

  • Dubai: E-commerce, logistics, and professional services
  • Abu Dhabi: Government contractors, energy, and real estate firms
  • Sharjah: Manufacturing, healthcare, and educational institutions

 

No matter your emirate, AEY ensures your VAT appeals UAE tax service is handled promptly and correctly.

Why AEY Accounting?

Feature Why It Matters
FTA Documentation Expertise Strong appeal drafting and legal support
VAT Filing Experience 1000+ returns filed successfully across all Emirates
Realtime Advisory & Alerts We keep you informed before deadlines hit
Audit & Appeal Readiness Full file preparation for FTA audits and investigations
Software Compatibility Zoho, Tally Prime, QuickBooks, and ERP integration

With AEY, your business stays penalty-free, tax-smart, and audit-ready—year-round.

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Mail Address

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Popular Questions

Your Trusted Partner for Business Support & Solutions.

You must file a Reconsideration Request with the FTA within 20 business days of the penalty being issued.

Copy of the penalty notice

Clarifying letter or justification

Financial records & supporting invoices

Past return filings & bank statements

Yes, in many cases. If you demonstrate valid cause and provide sufficient evidence, the FTA may reduce or cancel penalties.

Yes. AEY can file a Voluntary Disclosure (Form 211) to correct errors in previously submitted returns.

The fine will accumulate interest and trigger FTA legal actions, including audits or potential business license impacts.

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