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VAT

VAT Reconsideration

Registered Tax Agent — Regulated by the FTA

VAT Reconsideration in the UAE lets a taxable person formally request the Federal Tax Authority (FTA) to review a decision, penalty, or fine. Capella prepares and files your reconsideration request so your case is presented accurately and on time.

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TAN 30000939TAAN 20011987
VAT Reconsideration — Capella Tax Consultancy
FTA Approved
VAT
8+Years of Expertise
3,500+Clients Served
35,000+VAT Filings
4.9/5Client Rating

What is VAT Reconsideration?

VAT reconsideration in the UAE permits a taxable person to request a review of an FTA decision. Every company must understand the tax rules to operate efficiently in the UAE, as businesses that do not comply with Federal Tax Authority (FTA) legislation can face VAT fines and penalties.

There are many cases where businesses follow the FTA's laws and regulations yet still face fines and penalties. When a taxpayer is not convinced by the FTA's conclusion, they may request a VAT reconsideration to have the decision and the imposed penalty reviewed.

At a glance
  • Formal review of an FTA decision or penalty
  • Available to legal entities and natural persons
  • A route to contest fines you believe were wrongly imposed

Who Needs VAT Reconsideration?

If you are not satisfied with the FTA's decision after a penalty has been imposed, you can file a VAT reconsideration request asking the authority to review that decision. This applies to any business or individual that has received an FTA penalty or judgment they believe is incorrect or unfair.

  • Businesses penalised despite following FTA regulations
  • Taxpayers who disagree with an FTA conclusion
  • Companies seeking a reduction or cancellation of a fine

How to Apply for VAT Reconsideration in Dubai

The FTA is willing to reconsider its judgment on penalties imposed on businesses. The application is submitted electronically to the authority, requesting a review of the case and a reconsideration of the penalty, and must be made within 20 working days of receiving the penalty.

The applicant must provide justifications for the request, including the alternative treatment they believe should have applied to their situation. The FTA reviews the request and, if it meets the requirements, issues a reasoned decision within 20 business days of receipt, with the applicant notified within 5 business days of the decision being issued.

  • File within 20 working days of receiving the penalty
  • Submitted online to the FTA
  • Application and supporting documents must be in Arabic only
  • Reasoned FTA decision within 20 business days of a valid request

Documents and Information Required

A VAT reconsideration request must be supported by complete documentation and a clear explanation of why the FTA's decision should be reviewed.

  • VAT registration certificate
  • Emirates ID used for registration
  • Passport copy used for registration
  • Registered mobile number and Memorandum of Association
  • Amount and date of the penalty
  • Detailed facts and data explaining the reasons for reconsideration

Response Timeline

A response to a valid and complete reconsideration request can take up to 40 business days. If a request is incomplete, the FTA will ask for additional information, and a response can take up to a further 40 business days after re-submission.

  • Up to 40 business days for a complete request
  • Incomplete requests trigger an FTA request for more information
  • Accurate, complete filing avoids costly delays

Federal Decree-Law 28/2022 (Tax Procedures)

45 business daysFTA review period (notified within 5 business days)
40 business daysDeadline to file from the FTA decision
Why Capella

Why choose Capella

FTA-registered tax agent in the UAE handling your case end to end
Requests prepared and submitted correctly in Arabic, as required by the FTA
Strong, well-evidenced justifications to give your reconsideration the best chance
Filed within the strict 20-working-day deadline to protect your rights
Expert guidance through complex VAT regulations and FTA procedures
How Capella Handles It

Your VAT reconsideration, filed right the first time

01
Step 1

Free case assessment

We review the FTA decision or penalty you received, confirm you are within the 40-business-day filing window, and tell you honestly whether a reconsideration has merit.

02
Step 2

Evidence & grounds preparation

Our FTA-registered tax agents assemble your supporting documents and draft the legal and factual grounds in Arabic, as required by the Authority.

03
Step 3

Submission to the FTA

We file the reconsideration request electronically through the FTA portal within the deadline and confirm receipt so nothing lapses.

04
Step 4

Follow-up & response

The FTA reviews and issues a reasoned decision, normally within 45 business days, and notifies you within 5 business days. We track it and advise on next steps, including a Tax Disputes Resolution Committee escalation if needed.

Penalties

What non-compliance costs you

ViolationPenaltyHow Capella helps
Late VAT registration (failure to register within 30 days of exceeding the AED 375,000 threshold)AED 10,000 fixed administrative penaltyIf you believe registration was timely or the penalty was wrongly applied, Capella files a reconsideration with evidence of your supply dates and threshold calculation within the 40-business-day window.
Late submission of a VAT returnAED 1,000 first time; AED 2,000 if repeated within 24 monthsWhere a return was filed on time or a portal/technical issue caused the delay, we compile proof and request the FTA to cancel or reduce the penalty on reconsideration.
Late payment of VAT due2% of unpaid tax immediately, then 4% monthly, capped at 300%If payment was made or the assessed amount is incorrect, we present payment records and recalculations to the FTA to have the late-payment penalty reconsidered.
Voluntary disclosure / error penalty5% in year 1, rising 10%/20%/30%/40% in later years on the tax differenceWe review whether the disclosure percentage and base tax were applied correctly and challenge any miscalculated penalty through a reconsideration request.
Late VAT deregistration (failure to apply within 20 business days of becoming eligible)AED 1,000 per month, capped at AED 10,000If the deregistration trigger date is disputed or the cap was exceeded, Capella files for reconsideration with the supporting timeline and financials.
The Capella difference

Numbers that speak for us

900+

Businesses served

Across VAT, corporate tax and accounting in the UAE

100%

FTA-registered agents

Reconsiderations filed by licensed UAE tax agents

4.9/5

Client rating

Trusted for accurate, on-time FTA filings

40-day

Filing window managed

We act well inside the 40-business-day deadline

How we compare

Why businesses choose Capella

Generic agentsBig-4 / premiumCapella
FTA-registered tax agentOften not Yes Yes
Dedicated account managerVariesTeam-based Yes
Direct WhatsApp access No No Yes
Transparent fixed-fee packagesVariesHigh retainersFrom AED 299/mo
SME & startup focusVariesEnterprise-focused Yes
Accounting, tax & audit under one roofRarely Yes Yes
Local UAE / FTA expertiseVaries Yes Yes
FTA Approved

An FTA-registered & approved tax agency in the UAE.

Tax Agent (TAN): 30000939  |  TAAN: 20011987

Capella Tax Consultancy L.L.C is an FTA-approved Tax Agent in the UAE, helping businesses stay compliant with tax regulations. We provide VAT registration, VAT return filing, tax advisory, compliance reviews, and corporate tax services across all seven Emirates.

DubaiAbu DhabiSharjahAjmanAll UAE
Capella FTA tax agent certificate
FTA Registered Tax Agent
FAQ

Frequently asked questions

It is a formal request asking the Federal Tax Authority (FTA) to review and reverse a VAT decision or administrative penalty you believe is incorrect. You would use it to challenge penalties for late registration, late filing, late payment, or assessment errors, supported by factual and legal grounds.

Under the updated Tax Procedures Law, you must submit the request within 40 business days from the date you were notified of the FTA decision or penalty. Missing this deadline usually means the request is rejected unless you qualify for an extension under FTA Decision No. 1 of 2025 with supporting evidence.

You need a clear written justification setting out the factual and legal grounds, plus supporting evidence such as invoices, payment proofs, correspondence, and any tax advice received. The request and supporting documents should be submitted in Arabic, with certified Arabic translations for any documents originally in another language.

Requests are filed online through your EmaraTax portal account, and the service itself is free. It can be submitted by the taxpayer directly, or by an appointed Tax Agent or legal representative acting on your behalf.

The FTA issues a reasoned decision within the statutory period of around 40 to 45 business days from receiving your complete request, and notifies you of its decision within 5 business days of issuing it. If your reconsideration is rejected, you can escalate to the Tax Disputes Resolution Committee within the prescribed timeframe.

Testimonials

What clients say about Capella.

Capella has been a game-changer for our business. Their team is knowledgeable, responsive, and always ensures we stay compliant.

SME
SME ownerDubai

Professional, proactive, and always available when we need them. They handle our accounting, VAT, and corporate tax with complete accuracy.

TC
Trading companySharjah

Their insights go beyond compliance. Capella helps us understand our numbers better and make smarter financial decisions.

FN
FounderAbu Dhabi
Let's talk

Book a Free Consultation Today

Talk to Capella's tax experts about your FTA penalty and let us prepare and file your VAT reconsideration request before the deadline.

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