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This guide explains how businesses in the UAE can respond to FTA tax assessments, challenge disputed tax liabilities, and navigate review and reconsideration procedures. It highlights key deadlines, required documents, and legal requirements, with professional tax advisory support from SFA.
Receiving a tax assessment from the Federal Tax Authority (FTA) can create uncertainty for businesses in the UAE. However, taxpayers have legal options to challenge assessments they believe are incorrect. Under Federal Decree-Law No. 28 of 2022 on Tax Procedures, businesses may request a review, seek reconsideration, or escalate eligible disputes to the Tax Disputes Resolution Committee (TDRC).
Whether the assessment concerns VAT, Corporate Tax, or Excise Tax, understanding the applicable procedures and deadlines is essential for protecting your business interests and maintaining tax compliance.
Key Point: Taxpayers may submit an optional Tax Assessment Review Request within 40 business days of notification. A formal Reconsideration Request is also available under specific conditions. Federal Tax Authority Decision No. 1 of 2025 allows deadline extensions in certain circumstances.
Disclaimer: This article provides general information and does not constitute legal or tax advice. Always verify current requirements through the official FTA website at tax.gov.ae or consult a qualified tax professional.
Received an FTA Tax Assessment? Contact SFA for Professional Tax Advisory Support in the UAE.
An FTA tax assessment is an official determination issued by the Federal Tax Authority under Article 23 of Federal Decree-Law No. 28 of 2022. It establishes or adjusts a taxpayer's liability when discrepancies or non-compliance are identified, often following a tax audit.
Assessments may involve:
VAT: Incorrect tax calculations, underreported supplies, or ineligible input tax claims.
Corporate Tax: Errors in taxable income calculations or tax reporting.
Excise Tax: Discrepancies in declarations or tax payments.
Administrative Penalties: Violations involving registration, filing, or payment obligations.
The response period generally begins when the taxpayer is officially notified, including through EmaraTax, rather than when the notification is subsequently read.
The FTA may issue an assessment after identifying inconsistencies between submitted tax returns, financial records, and applicable tax requirements.
Common reasons include:
Differences between VAT returns and accounting records.
Incorrect application of VAT exemptions or zero-rating.
Late VAT or Corporate Tax registration.
Errors discovered during an FTA tax audit.
Incomplete financial records or supporting invoices.
Discrepancies involving Excise Tax and customs declarations.
Understanding the reason behind an assessment helps businesses determine the most appropriate response.
Businesses should act promptly to avoid missing statutory deadlines and to prepare an effective response.
Verify the Notification Date: Identify the official notification date to calculate the applicable response deadline.
Review the Assessment: Examine the tax calculations, penalties, and legal grounds cited by the FTA.
Collect Supporting Evidence: Gather relevant tax returns, invoices, accounting records, and previous FTA correspondence.
Evaluate Your Options: Determine whether an assessment review or reconsideration is appropriate.
Consult a Tax Professional: Obtain specialist guidance to prepare an accurate, well-supported submission.
Need Help Reviewing an FTA Assessment? SFA Can Assist Your Business in Understanding the Available Tax Dispute Procedures.
UAE tax legislation provides two important administrative procedures for challenging FTA assessments and decisions.
A Tax Assessment Review Request allows taxpayers to challenge an assessment based on technical inaccuracies, calculation errors, or issues identified during the audit process.
Under FTA Public Clarification TAXP008, this procedure generally relies on documents and information previously submitted to the Authority. New evidence should instead be considered through the reconsideration process.
Key requirements:
Submission deadline: Within 40 business days of assessment notification.
FTA decision period: 40 business days from receiving the request, subject to applicable extensions.
Decision notification: Within 5 business days after issuance.
Submission channel: AssessmentReview@tax.gov.ae, subject to confirmation of current FTA requirements.
The assessment review procedure is optional and should be evaluated according to the circumstances of the dispute.
A Reconsideration Request enables taxpayers to formally challenge an FTA decision, either fully or partially, and may allow additional evidence to be submitted.
Applications are filed through the EmaraTax platform and must include clear grounds explaining why the decision is disputed.
Key requirements:
Submission deadline: Within 40 business days of notification of the relevant FTA decision.
FTA decision period: 45 business days after receiving the application.
Decision notification: Within 5 business days of issuance.
Supporting evidence: Relevant documents and a reasoned explanation of the dispute.
A Reconsideration Request concerning the same assessment cannot proceed while a Tax Assessment Review Request remains pending. The taxpayer must wait for the review decision or the expiry of the applicable statutory review period.
Preparing accurate documentation is essential when disputing an FTA assessment. Depending on the case, businesses may need:
The original FTA assessment and penalty notices.
VAT or Corporate Tax returns for the relevant periods.
Sales invoices, purchase invoices, and financial statements.
General ledger records and bank statements.
Previous communications with the FTA.
A written explanation outlining the grounds of the dispute.
Complete and organized evidence helps support the taxpayer's position and facilitates the review process.
Federal Decree-Law No. 28 of 2022 establishes the main legal procedures governing tax assessments and disputes in the UAE.
| Legal provision | Purpose |
|---|---|
| Article 23 | Authorizes the FTA to issue tax assessments. |
| Article 28 | Regulates Tax Assessment Review Requests. |
| Article 29 | Establishes the reconsideration procedure. |
| Articles 30–34 | Govern objections through the Tax Disputes Resolution Committee. |
| FTA Decision No. 1 of 2025 | Provides for deadline extensions in qualifying circumstances. |
If reconsideration does not resolve the disagreement, eligible taxpayers may escalate their case to the TDRC.
However, Article 32 requires payment of the full disputed tax amount as a condition for the Committee to accept an objection.
Procedural errors can significantly affect a taxpayer's ability to challenge an assessment. Businesses should avoid:
Missing the applicable 40-business-day deadline.
Filing overlapping assessment review and reconsideration requests.
Introducing new evidence through an assessment review rather than reconsideration.
Escalating a dispute without satisfying the required tax payment conditions.
Submitting incomplete documentation or unsupported arguments.
Assuming that a delayed FTA response means the assessment has been cancelled.
Careful preparation and timely action can help minimize these risks.
Managing an FTA tax assessment requires an understanding of UAE tax legislation, accurate financial documentation, and compliance with statutory procedures.
SFA provides professional tax advisory support to businesses navigating tax assessments, compliance concerns, and dispute-related requirements.
Our services can help businesses:
Review FTA assessment findings and identify potential discrepancies.
Evaluate available assessment review and reconsideration procedures.
Organize supporting documentation and prepare responses.
Address VAT and Corporate Tax compliance issues.
Strengthen internal tax processes to reduce future compliance risks.
Seeking professional assistance early can help businesses approach tax disputes more effectively and avoid unnecessary procedural complications.
An FTA tax assessment does not necessarily represent the end of a taxpayer's options. UAE tax legislation provides structured procedures for challenging assessments, requesting reconsideration, and escalating eligible disputes.
The most important considerations are understanding the assessment, preparing sufficient evidence, and meeting the applicable legal deadlines.
Facing an FTA Tax Assessment in the UAE? Contact SFA for Professional Guidance and Support With Your Tax Compliance and Assessment Challenges.
This article reflects the professional perspective of our specialists at SBA – #. If you would like to discuss how these developments affect your organisation, our team is happy to help.
This guide explains how businesses in the UAE can respond to FTA tax assessments, challenge disputed tax liabilities, and navigate review and reconsideration procedures. It highlights key deadlines, required documents, and legal requirements, with professional tax advisory support from SFA.
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