Introduction to Clarifications in UAE Tax
Navigating tax laws in UAE can feel like solving a puzzle. Even with research and expert advice, many cases remain uncertain. To address this, the Federal Tax Authority (FTA) introduced the Clarification service. It allows taxpayers to apply for official guidance on tax questions.
But not everyone can apply. There are clear eligibility criteria that decide who can submit a request and what kind of matters can be clarified. Understanding these rules ensures your application is processed correctly and without delay.
Two Main Types of Eligibility Criteria
Clarification requests are based on two factors:
- Eligible Person – who is authorized to apply.
- Eligible Matters – which issues qualify for clarification.
Both must be met for the request to be accepted.
Who Is an Eligible Person?
The main principle is that the person facing the tax issue is the one who applies. Let’s break it down:
- Taxpayer: The individual or company directly affected can apply. For example, if you’re uncertain about VAT on your transaction, you apply yourself.
- Tax Group: In a VAT or corporate tax group, only the representative member can submit a request. Individual members of the group cannot file separate requests.
- Tax Agent or Legal Representative: A registered tax agent or legal representative can apply on behalf of a taxpayer. Conditions apply:
- The agent must be registered with FTA for that tax type.
- A VAT agent cannot file a corporate tax clarification unless the company is registered.
- The request must show the taxpayer’s name, not the agent’s name.
Note: Advisors who aren’t registered tax agents cannot submit clarification requests.
- Exceptional Case: If multiple parties are involved in one transaction with the same facts, they can file a joint request. FTA reviews these case by case.
What Matters Are Eligible?
Eligibility isn’t just about who applies. It’s also about what is being clarified. Requests must:
- Relate only to federal taxes (like VAT or Corporate Tax) or related penalties.
- Clearly mention the tax type involved.
- Apply to the facts of the applicant only. Clarifications are not general rulings for third parties.
- Contain complete information. Missing documents or vague facts are top reasons for rejection.
Incomplete or irrelevant requests are rejected by FTA.
Key Requirements for a Valid Clarification
To succeed, your request must include:
- Full details of your tax question.
- Clear explanation of facts and background.
- Supporting documents like contracts, invoices, and calculations.
- Identification of the correct tax type.
- Signature by the taxpayer or an authorized agent.
By following these requirements, you increase the chance of approval.
Why Eligibility Matters
Clarification helps taxpayers resolve genuine tax uncertainties. It prevents disputes and ensures compliance with UAE law. But the process works only when eligibility rules are followed carefully.
This structured system improves:
- Transparency – taxpayers know how laws apply to their cases.
- Compliance – businesses avoid mistakes and penalties.
- Confidence – companies can operate with clear understanding of tax rules.
Role of Mubarak Al Ketbi (MAK) Auditing
Tax law in UAE is detailed. While the FTA publishes guides, every case has unique facts. That’s why professional guidance is valuable.
Mubarak Al Ketbi (MAK) Auditing assists businesses and individuals in preparing strong clarification requests. Our experts review documents, highlight compliance issues, and ensure requests meet FTA standards. With our support, you avoid rejection due to incomplete or improper applications.
What Can Help You?
Mubarak Al Ketbi (MAK) Auditing helps businesses manage clarifications with ease. Our experience ensures accuracy, compliance, and peace of mind.
We assist with:
- Preparing tax clarification requests
- Reviewing supporting documents
- Filing applications with FTA
- Advising on VAT and Corporate Tax issues
- Guiding companies with ongoing compliance
Contact Information
For more information:
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Call/WhatsApp: +971 50 276 2132
