Under the Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures and Federal Decree Law №18 of 2022 (Amended Decree Law) amending Federal Decree Law №8 of 2017 (Decree Law) effective from January 1st, 2023, VAT returns form a legally binding statement of your tax liabilities as a self-declared assessment.
This means the preparation and accuracy is the responsibility of the taxable person and is subject to UAE FTA VAT audits to verify the accuracy of tax liabilities and compliance to the prevailing legislation.
Following the introduction of VAT in 2018, the 5-year statute of limitation results in any VAT declarations being no longer subject to any FTA VAT audits. Therefore 2023 represents the final year the FTA can trigger audits or invoke provisions under the Amended Decree Law. However, under Article 79 of the Amended Decree Law for Statute of Limitations, grants the FTA an additional four years to undertake an audit providing that it has issued a notice for audit or assessment before the expiration of the general statute of limitations of five years.
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