Obtaining private clarification from FTA

Obtaining private clarification from FTA
by Aswani

Obtaining private clarification from FTA

Seeking a Clarification from the FTA entails navigating a complex process with numerous prerequisites. HLB Abu Dhabi’s expert guidance becomes indispensable in this endeavor, facilitating the application and acquisition of private clarification details from the FTA. 

These Clarifications, essential documents issued by the FTA in response to queries, shed light on the tax treatment of specific transactions, aligning with the FTA’s interpretation of tax legislation and its application to the provided facts.


What is meant by private clarification of FTA?

FTA VAT Clarifications are official documents issued by the UAE’s Federal Tax Authority (FTA) in response to specific transaction inquiries from businesses. These clarifications offer the FTA’s interpretation of relevant tax laws and how they apply to the details presented in the application.  However, it’s crucial to note that the FTA relies solely on the information provided – they won’t verify the facts themselves.  Therefore, businesses must ensure complete and accurate information is included in the application.  Importantly, the Clarification applies only to the specific transaction(s) and the requesting business; it doesn’t set a general precedent for others or future transactions.

Who Can Submit a VAT Clarification Request?

In most cases, the business owner (or their authorized representative) should submit the VAT Clarification form themselves when seeking clarification on a business transaction. However, there are some exceptions:

Appointed Tax Agents: Businesses can authorize registered tax agents to submit the Clarification form on their behalf. These agents can offer valuable guidance throughout the process.

Court-Appointed Legal Representatives: If a business has a court-appointed legal representative, they may submit the Clarification form.

Tax Groups: For businesses that are part of a tax group, the authorized signatory of the representative member within the group can submit the request.

Important Note: Tax advisors who are not registered tax agents are not permitted to submit VAT Clarification requests for other businesses.

Benefits of FTA VAT Clarifications

  • Confident Compliance: Clarifications provide clear and official guidance on your VAT obligations for specific transactions. This ensures you’re adhering to the law and minimizes the risk of penalties.
  • Informed Decisions: Clarifications help you navigate complex VAT scenarios. With the FTA’s interpretation of the law, you can make informed decisions about transactions with greater certainty.
  • Reduced Uncertainty: Facing doubts or ambiguities regarding VAT? Clarifications remove the guesswork by offering official guidance, allowing you to move forward with confidence.

HLB Abu Dhabi: Your Partner in Securing VAT Clarifications

While VAT Clarifications offer valuable guidance, navigating the application process can be challenging. HLB Abu Dhabi’s VAT specialists can be your trusted partner throughout this process:

  • Eligibility Assessment: Our team will meticulously evaluate your situation to determine if your specific scenario qualifies for a VAT Clarification request.
  • Crafting a Compelling Application: We will assist you in drafting a clear and concise application that accurately outlines the transaction details and the questions you require clarification on.
  • Ensuring Completeness and Accuracy: Our VAT specialists will ensure all necessary information is included in your application and that the details provided are factually accurate. This is crucial as the FTA relies solely on the information submitted.
  • Streamlined Application Process: We will guide you through the entire application process, ensuring adherence to FTA regulations and deadlines to avoid delays.

How HLB Abu Dhabi Can Help?

Contact us today to discuss your specific situation and learn how we can help.

Call or Email us: +971 50 742 7124 or abudhabi@hlbhamt.com

Frequently Asked Questions (FAQ’s)

  1. What are the advantages of obtaining a VAT Clarification from the FTA?

    FTA VAT Clarifications offer official guidance on your VAT obligations for specific transactions. This helps ensure compliance with UAE VAT regulations, minimizes the risk of penalties, and allows you to make informed decisions regarding complex VAT scenarios.

  2. When should I consider seeking a VAT Clarification?

    Consider seeking a VAT Clarification if you’re unsure about the VAT treatment of a specific transaction, particularly when dealing with complex or unique situations.  Clarification can also be helpful if you have doubts or uncertainties regarding VAT laws and their application to your business.

  3. How can HLB Abu Dhabi assist with obtaining a VAT Clarification?

    HLB Abu Dhabi’s VAT specialists offer comprehensive support throughout the clarification process. We can help assess eligibility, draft a clear and accurate application, ensure completeness, navigate the process efficiently, and even explain complex VAT regulations relevant to your situation.

  4. What are the benefits of partnering with HLB Abu Dhabi for VAT Clarifications?

    Partnering with HLB Abu Dhabi provides peace of mind. Our VAT expertise ensures your application is accurate and compliant, minimizing delays. We can also help develop risk mitigation strategies if any issues arise during the process.