vatfiling.com / VAT services / Penalty reconsideration
Corrections
Challenging an FTA penalty
Most penalty notices are correct. Some are not, and a few are correct on the law but built on facts the FTA never had. Telling those apart before you reply is the whole job.
- Window
- 40 business days
- Language
- Arabic
- Then
- TDRC
From notification, to lodge a reconsideration request.
Reconsideration submissions are made in Arabic.
If reconsideration fails, the dispute committee is the next step.
How it runs
- The notice is read against the recordWhich period, which article, which figure. A surprising number of penalties trace to a return the FTA never received rather than one filed wrongly.
- We give you an honest readIf the penalty is right, we say so and put the effort into paying it down instead of arguing.
- Grounds are built on evidenceBank value dates, submission receipts, EmaraTax logs. Hardship is not a ground. A payment that cleared on time is.
- The submission is filed inside the windowAnd the outcome is tracked, with the TDRC route mapped in case it is needed.
What we ask you for
- The penalty notice itself
- The return and payment records for that period
- Bank confirmations showing value dates
- Any prior FTA correspondence
What we see go wrong
- Letting the 40 business days lapse while gathering documents. A late request is not considered at all.
- Arguing fairness rather than fact. The FTA reconsiders on evidence, not on intention.
- Paying nothing while disputing. Late payment keeps accruing at 14% a year regardless of the outcome.
Questions we get asked
How long do I have to challenge an FTA penalty?
Forty business days from being notified of the decision, to submit a reconsideration request to the FTA.
What are good grounds for reconsideration?
Documentary evidence that the underlying fact is wrong — a return that was filed, a payment that cleared before the due date, an assessment built on figures that are not yours. Financial hardship is not a ground.
Should I pay while the reconsideration is pending?
Usually yes, at least the principal. The late-payment charge of 14% a year runs on unpaid tax whatever happens to the penalty.
General information about UAE VAT, current at 10 August 2026. It is not tax advice and does not create a client relationship — see our disclaimer. Confirm your own position with the FTA, or with us, before acting.
Send the return. We will tell you where it stands.
No charge for the first look. If nothing needs doing we will say so, and if something does you will know what it costs before you decide.