UAE: New tax service fees announced; ‘private clarification’ fees apply from June 1 – News

Taxpayers can submit requests and use services through the official website of the authority

The Federal Tax Agency (FTA) announced today that it will start charging companies a “private clarification” fee from Thursday 1 June 2023.

Fees will be charged for submitting requests seeking further information and clarifications related to one tax or multiple taxes issued by the FTA, the authority explained. This will come in the form of documents stamped and signed by the FTA relating to specific tax technical issues and specific taxpayers.

“Private clarification” is a request submitted by the taxpayer for this purpose on the authority’s website using a specific form together with the documents attached to the form.

The fee will be collected by the authority as part of the implementation of Cabinet Decision No. 7 of 2023.

The authority explained that under the new decision, the FTA can refund the applicant the fees incurred for the “private clarification” request if the FTA does not issue the required clarification.

FTA confirmed that taxpayers can use the two services through its website, where users need to register on the website, submit the required supporting documents, and pay the fees stipulated in Cabinet Decision No. (65) of 2020 and its amendments.

According to tax consultant Crowe, the service fee for a clarification request related to a single tax item is Dh1,500 and for more than one item, Dh2,250.

“We understand that ‘taxes’ relate to applicable taxes in the UAE, namely VAT, excise and corporate taxes…Given the additional costs involved in requesting ‘private clarification’, the recommended date to submit the request before it becomes effective is 1 June 2023 ,” it said on its website.