Under What Condition You Can Apply For VAT Amendment?

Are you registered for VAT? Does your filed record with FTA need to be updated? The registrant is responsible to notify the changes in business details that are provided while applying for VAT registration. Any change that is different from what’s there in the tax records kept by the FTA, registrant must inform the FTA by updating records within 20 business days from the occurrence of such update.

If the changes are not notified and amended, a penalty could be levied. FTA allows the taxpayers to modify the registration details online by login in to the FTA portal. However not all details can be modified online as certain fields are blocked from modification. Business details can be changed using “Edit” and “Amendment” options. Edit Option can be exercised for the following changes:

• Business activities of the applicant section: For changes in primary activity and the other activities
• GCC activities section: Registration of VAT in any GCC member states needs to be reported here
• Customs Registration Information section: In the customs registration information section, customs registration number issued by the relevant customs department in the UAE needs to be provided. If you have multiple Customs Registration Numbers (“CRN”) in the UAE, you should add each of them as a separate line item.

Please note that, when registrant make changes through the ‘Edit’ option, the changes are reflected automatically on your profile, by saving the changes in the form. FTA approval is not required. Amendment Option can be exercised for the following changes:

• Details of the Applicant
• Contact details
• Banking details of the applicant
• Business relationships
• About the VAT application
• Declarations

Please note that, if registrant makes changes to the form through the ‘Amendment’ option, the changes will reflect on the form only after the FTA has approved your amendments. The FTA may ask you for more information while reviewing your application for the respective amendments.

Penalty If registrant fails to inform the Authority about any circumstance that requires the amendment of the information pertaining to his tax record, the registrant is bound to pay penalty as follows:

• AED 5,000 for the First Time
• AED 15,000 in case of Repetition

This blog post is written by CA Rashid Ali, Tax Advisor at Flyingcolour Tax Consultants. If you have any question related to VAT amendment or any VAT related query then feel free to call us at +971 4 4542366 today for a quality consultation or please send inquiry to info[at]flyingcolour[dot]com. Please Note: This article was published on 05th August,2020. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.