Step-by-Step Guide to Filing Reconsideration Requests in UAE Tax Assessments

The Federal Tax Authority (FTA) of the United Arab Emirates is responsible for administering and collecting taxes such as Value Added Tax (VAT), Excise Tax, and Corporate Tax. As part of its regulatory process, the FTA may issue tax assessments, penalties, or decisions that taxpayers may find incorrect or unjustified. In such cases, the taxpayer has the legal right to file a reconsideration request.

A reconsideration request is a formal appeal that allows the taxpayer to challenge an FTA decision and seek a review. This process is an important safeguard that ensures fairness and transparency in tax administration. This article provides a comprehensive step-by-step guide to filing a reconsideration request with the UAE’s Federal Tax Authority.

What is a Reconsideration Request?

A Reconsideration Request is a written application submitted by a taxable person to the FTA to review a tax-related decision or penalty issued by the authority. This may include:

• Tax assessments
• Administrative penalties
• Rejection of refund claims
• Denial of voluntary disclosures
• Any other decision that affects the taxpayer

According to Federal Law No. (7) of 2017 on Tax Procedures, a taxpayer has the right to request a reconsideration within 20 business days from the date they are notified of the FTA decision.

Who Can File a Reconsideration Request?

Any registered or non-registered person under the UAE tax system who has received an unfavorable decision from the FTA has the right to file a reconsideration request. This includes:

• VAT-registered businesses
• Excise taxpayers
• Corporate tax registrants
• Individuals subject to tax penalties

Step-by-Step Guide to Filing a Reconsideration Request

Step 1: Understand the Basis of the FTA Decision

Before you begin the process, carefully review the decision, penalty, or assessment received from the FTA. It is important to understand:

• The reason cited for the penalty or tax adjustment
• The applicable legal articles or regulations
• Any deadlines mentioned for response or appeal

Understanding the root cause will help you prepare a focused and valid reconsideration request.

Step 2: Ensure Timely Filing (Within 20 Business Days)

As per the law, the reconsideration request must be submitted within 20 business days from the date of notification of the FTA’s decision. This is a strict deadline, and late submissions are generally rejected.

Mark the date of receipt clearly and calculate 20 business days (excluding weekends and UAE public holidays) to avoid missing the window.

Step 3: Prepare Required Documents

You will need the following documents and information:

• A detailed justification letter explaining why the decision should be reconsidered
• Supporting documents (e.g., invoices, tax returns, bank statements, contracts)
• A copy of the original decision or penalty notification
• A valid Emirates ID or passport copy (for individuals)
• Trade license and other legal documents (for companies)
• Power of Attorney (if submitted by a representative)

The justification letter should clearly state the legal and factual grounds upon which the reconsideration is being sought.

Step 4: Access the FTA’s E-Services Portal

To submit a reconsideration request, log in to the EmaraTax portal using your FTA credentials.

1. Navigate to the ‘Requests’ section
2. Choose ‘Reconsideration Request’
3. Fill in the online form with relevant details
4. Upload all supporting documentation
5. Submit the request

You will receive a reference number confirming successful submission.

Step 5: Wait for FTA Response

After submission, the FTA will review your request and issue a decision. As per UAE law, the authority is required to respond within 20 business days of receiving the request. However, in practice, it may take longer depending on the complexity of the case.

You will receive the outcome through the EmaraTax portal or via email. The decision will either:

• Accept the reconsideration and cancel/amend the decision, or
• Reject the reconsideration with a statement of reasons

What Happens If the Request is Rejected?

If the FTA rejects the reconsideration request, the taxpayer still has legal options. You can escalate the matter to the:

1. Tax Disputes Resolution Committee (TDRC) – Must be filed within 20 business days from the rejection.
2. UAE Courts – If unsatisfied with the committee’s decision, you may appeal in court under judicial procedures.

Common Mistakes to Avoid

• Missing the 20-day deadline
• Submitting incomplete documents
• Failing to provide a proper justification
• Not translating documents to Arabic (FTA requires documents to be in Arabic)
• Submitting without supporting evidence

Hiring a qualified tax advisor can significantly improve your chances of success and ensure compliance with procedural requirements.

Tips for a Successful Reconsideration

• Act quickly: File the request as soon as possible after receiving the decision.
• Be concise and factual: Avoid emotional or argumentative language. Focus on legal grounds.
• Use professional help: Consider involving tax consultants or legal experts.
• Follow up regularly: Keep track of the status via the EmaraTax portal.

Conclusion

Filing a reconsideration request is a valuable legal recourse available to all taxpayers in the UAE who disagree with a decision by the FTA. While the process is straightforward, strict deadlines and documentation requirements make it essential to approach the matter carefully and promptly.

By following the proper steps—understanding the decision, preparing strong evidence, filing on time, and tracking the response—you can ensure your rights are protected and potentially reverse an unfavorable tax decision. Businesses and individuals are encouraged to consult with UAE tax professionals like Tax Consultant Dubai to strengthen their case and navigate the procedure efficiently.