Important update related to filing VD (Voluntary Disclosure) correcting errors in VAT returns

The Federal Tax Authority has issued Decision No. 8 of 2024 – Issued 1 November 2024 – (Effective from 1 January 2025) outlining the mechanism for correcting errors or omissions in VAT returns. 

• If the Taxpayer discovers an error or omission in the Tax Return submitted to the Authority for the purposes of Federal Decree-Law No. 8 of 2017 (VAT), where there is no difference in the Due Tax, they shall correct such error by submitting a Voluntary Disclosure if any of the cases stated below 

 

1. Misreporting Standard-Rated Taxable Supplies: Reporting standard-rated taxable supplies for one Emirate in the box of another Emirate. 
2. Incorrect Reporting of Zero-Rated Taxable Supplies: Understating or overstating zero-rated taxable supplies. 
3. Incorrect Reporting of Exempt Supplies: Understating or overstating exempt supplies. 

 

 

How to avoid errors in filing VAT returns? 

• Ensure accuracy when preparing Tax Returns to avoid voluntary disclosure requirements. 

• Double-check the classification of supplies (Standard-Rated, Zero-Rated, or Exempt) for proper reporting. 

• Report taxable supplies under the correct Emirate to remain compliant. 

 

Stay Compliant • Avoid Errors • File Accurately 

 

 

Why Choose Spectrum Auditing?

At Spectrum Auditing, we go beyond just being an auditing firm; we’re your trusted partner in navigating the ever-evolving landscape of UAE regulations. Here’s what sets us apart:

• Unparalleled Expertise: Our team consists of accredited auditors, management accountants, consultants with in-depth knowledge of UAE laws, ensuring your business remains compliant.
• Streamlined Solutions: We take a comprehensive approach, guiding you through every step of the process, from risk assessment to filing reports.
• International Recognition: Be audits or any type of compliance, we adhere to the highest standards (ISA, IAS, IFRS), providing global credibility.
• Personalized Support: We understand every business is unique. We tailor our services to address your specific needs and answer any questions you may have.

 

Partner with Spectrum Auditing today. Let’s focus on your success, while you focus on what you do best – running your business.

 

Contact us today for a consultation at +971 4 2699329  or email [email protected] to get all our queries addressed.