The Federal Tax Authority (FTA) has announced Decision No. 8 of 2024, which provides guidelines on how companies can correct errors or omissions in their VAT returns. This applies when companies find mistakes in their submitted VAT returns, but there is no change in the due tax amount. In such cases, the errors should be corrected through a Voluntary Disclosure.

Errors or omissions that do not affect the due tax but still require correction include:

• Misreporting standard-rated taxable supplies between Emirates.
• Incorrect reporting (understating or overstating) zero-rated taxable supplies.
• Misreporting (understating or overstating) exempt supplies.

This update is part of the Federal Tax Authority’s ongoing efforts to improve accuracy and compliance in VAT returns. The decision was issued on November 1, 2024, and will become effective from January 1, 2025.

As businesses adapt to this new regulation, it is important to carefully review how it impacts your VAT reporting. At YUGA Accounting & Tax Consultancy, we are ready to assist you with any questions or concerns related to this update or any other tax matters. Please reach out to us for support.

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Phone : +971 52 1952 532 / +971 4 240 1110

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