Update for VAT-Registered Entities in the UAE

The Federal Tax Authority (FTA) has issued Decision No. 8 of 2024, introducing a mechanism for correcting errors or omissions in tax returns submitted for Value Added Tax (VAT). 

What You Need to Know: The decision applies to errors or omissions without any difference in the due tax. 

Examples include: 

– Misreporting standard-rated taxable supplies between Emirates. 

– Incorrect reporting of zero-rated taxable supplies (overstated or understated). 

– Misreporting exempt supplies (overstated or understated). 

Key Highlights: Errors must be corrected through a Voluntary Disclosure. 

Effective Date: 1 January 2025. 

This decision is designed to streamline compliance and ensure accuracy in VAT reporting.