VAT Excise Tax Reconsideration Requests UAE — FTA Appeal Licensed Tax Agent Abdelhamid & Co CPA

VAT & Excise Tax Reconsideration Requests UAE — FTA Appeal & Objection Service

Quick answer: A reconsideration request is the first formal step to challenge an FTA administrative penalty, tax assessment, or decision under Federal Decree-Law No. 28 of 2022 on Tax Procedures (Art. 27) and Cabinet Decision No. 74 of 2023. The registrant must file the reconsideration within 40 business days of receiving the FTA decision; the FTA has 40 business days to respond. If the reconsideration outcome is unfavourable, the next step is the Tax Disputes Resolution Committee (TDRC) under Art. 28 of Federal Decree-Law No. 28 of 2022 and Ministerial Decision No. 247 of 2023, and — thereafter — the Federal Court of First Instance. Abdelhamid & Co — FTA-Licensed Tax Agent TAN: 30003958 / Tax Agency TAAN: 20033908 — prepares technically grounded reconsideration files, submits through the FTA e-Services portal, and manages the full dispute resolution chain through TDRC and court stages.

Abdelhamid & Co Certified Public Accountants & Auditors LLC is fully authorised to act as Tax Agent and Tax Agency before the Federal Tax Authority under the UAE Tax Procedures Law (Federal Decree-Law No. 28 of 2022 and Cabinet Decision No. 74 of 2023): Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908 | Ministry of Economy Licence LC0106-01 | Licensed Auditor Registry No. 956 | Emirates Accountants and Auditors Association (EAAA) Fellow No. 124 | International Arab Society of Certified Accountants (IASCA) Fellow No. 1361 | over 25 years of professional experience in UAE tax, audit, and accounting. Our dispute team has successfully challenged FTA VAT and Excise Tax penalties, assessments, and administrative decisions for businesses across manufacturing, real estate, retail, professional services, and financial sectors. Learn more about our broader VAT & Excise Tax services or about the firm.

Overview — FTA Reconsideration Process for VAT & Excise Tax in the UAE

The UAE Federal Tax Authority has broad powers to issue administrative penalties, raise tax assessments, and make binding decisions on VAT and Excise Tax registrants. These decisions — whether for late registration, late filing, inaccurate returns, failure to keep records, or tax assessment shortfalls — can expose businesses to substantial financial liability. The law provides a structured challenge mechanism to ensure taxpayer rights are protected.

A reconsideration request under Art. 27 of Federal Decree-Law No. 28 of 2022 allows the affected registrant to ask the FTA itself to review a decision it has made. This is a mandatory first step — the TDRC will not accept a dispute unless a reconsideration has been filed and either decided or time-expired. Filing a technically well-prepared reconsideration — with full legal argument, supporting evidence, and precise reference to the applicable statutory provisions — significantly increases the prospect of the FTA reducing or cancelling the challenged decision at this early stage, without the cost and delay of TDRC proceedings.

If the FTA upholds its original decision in whole or in part, the registrant may escalate to the Tax Disputes Resolution Committee within 40 business days of the reconsideration outcome, and — if still aggrieved — to the Federal Court of First Instance within 40 business days of the TDRC decision. At each stage, the strength of the original reconsideration file determines the quality of the legal position available to the taxpayer.

Legal & Regulatory Framework — UAE VAT & Excise Tax Reconsideration

  • Federal Decree-Law No. 28 of 2022 on Tax Procedures — the primary statute governing taxpayer dispute rights: Art. 27 establishes the right to file a reconsideration request with the FTA within 40 business days; Art. 28 establishes the right to escalate to the Tax Disputes Resolution Committee; Art. 29 regulates court proceedings; Arts. 10 & 14 govern Tax Agent authorisation to act on behalf of registrants in dispute proceedings; Art. 43 governs tax assessments and the FTA's assessment powers; Art. 72 sets the statute of limitations at 5 years (15 years in fraud cases).
  • Cabinet Decision No. 74 of 2023 on the Executive Regulation of Federal Decree-Law No. 28 of 2022 — specifies the form and content requirements for reconsideration requests, the FTA's 40-business-day response obligation, the required Power of Attorney for Tax Agent representation, and the escalation procedures to the TDRC.
  • Ministerial Decision No. 247 of 2023 on the Tax Disputes Resolution Committee — establishes TDRC composition, jurisdiction, procedures, timelines, and the conditions for court escalation after an unfavourable TDRC decision.
  • Federal Decree-Law No. 8 of 2017 on Value Added Tax — underlying VAT law whose provisions are commonly the subject of FTA assessments and penalty decisions challenged through reconsideration: supply classification, input tax recovery, reverse charge, VAT Groups, zero-rating conditions, export evidence requirements.
  • Cabinet Decision No. 52 of 2017 on the Executive Regulations of Federal Decree-Law No. 8 of 2017 — detailed VAT rules on tax invoices (Arts. 59–60), filing deadlines (Art. 40), input tax apportionment (Arts. 40–48), and Designated Zone treatment — all frequently contested in FTA assessment decisions.
  • Federal Decree-Law No. 7 of 2017 on Excise Tax — Excise Tax law whose stock movement, registration, and rate provisions are the subject of Excise Tax assessments and penalties challenged at reconsideration stage.
  • Cabinet Decision No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE — the original penalty schedule, including penalties for late registration, late filing, inaccurate returns, failure to keep records, and failure to display prices inclusive of VAT.
  • Cabinet Decision No. 129 of 2025 Amending Cabinet Decision No. 40 of 2017 — updated penalty schedule effective 2025: late-filing AED 1,000 / AED 2,000; inaccurate return 30% surcharge on understated tax; 2% monthly late-payment surcharge; 4% monthly surcharge 7+ days after assessment; AED 20,000 late registration penalty — all subject to reconsideration challenge.
  • FTA Public Clarification VATP031 — FTA guidance on the reconsideration and dispute resolution process, including the documentation required to support a reconsideration request.

Key Facts — UAE FTA Reconsideration & Dispute Resolution

  • Reconsideration deadline: 40 business days from receipt of the FTA decision or assessment (Art. 27, Federal Decree-Law No. 28 of 2022)
  • FTA response time: 40 business days from receipt of the reconsideration request
  • TDRC escalation deadline: 40 business days from receipt of FTA reconsideration outcome
  • Court escalation deadline: 40 business days from TDRC decision (Federal Court of First Instance)
  • TDRC deposit requirement: 50% of the disputed tax amount must be deposited before TDRC filing (waivable in hardship cases)
  • Mandatory first step: Reconsideration must be filed before TDRC — TDRC will not accept a dispute without prior reconsideration
  • Late registration penalty: AED 20,000 (Cabinet Decision No. 129 of 2025) — commonly challenged at reconsideration
  • Late-filing penalties: AED 1,000 (first offence) / AED 2,000 (repeat within 24 months) — subject to reduction on reconsideration with valid excuse
  • Inaccurate return surcharge: 30% of understated tax — reducible on voluntary disclosure or reconsideration
  • Statute of limitations: 5 years standard; 15 years in fraud cases (Art. 72, Federal Decree-Law No. 28 of 2022)
  • Tax Agent authority: FTA Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908
  • Firm credentials: Ministry of Economy LC0106-01 | Licensed Auditor No. 956 | EAAA Fellow No. 124 | IASCA Fellow No. 1361 | 25+ years experience

Our VAT & Excise Tax Reconsideration & Dispute Services

1. FTA Reconsideration Request Preparation & Submission

We prepare a technically rigorous reconsideration file addressing every element of the FTA's decision — legal authority for the challenged decision, factual disputes, applicable statutory provisions, mitigating circumstances, and the specific relief sought (cancellation, reduction, or substitution of the penalty or assessment). We cite the precise articles of Federal Decree-Law No. 28 of 2022, Cabinet Decision No. 74 of 2023, Federal Decree-Law No. 8 of 2017, Cabinet Decision No. 52 of 2017, and the relevant administrative penalty provisions of Cabinet Decision No. 129 of 2025. The reconsideration is submitted through the FTA e-Services portal as authorised Tax Agent (TAN: 30003958) within the 40-business-day deadline under Art. 27.

2. Tax Assessment Challenge & Quantification Review

Where the FTA has raised a VAT or Excise Tax assessment, we forensically review the FTA's computation — examining the basis of the assessed output tax, the input tax disallowances, and the penalty calculations — and identify errors of law, fact, or quantification. We prepare an alternative technical computation supported by contemporaneous accounting records, invoices, contracts, customs declarations, and bank statements, and submit the reconsideration with a full schedule of disputed amounts and the legal basis for each disputed item.

3. Administrative Penalty Reconsideration

Administrative penalties — for late registration, late filing, failure to keep records, failure to display VAT-inclusive prices, and inaccurate returns — are the most frequently contested FTA decisions. We assess the legal basis for each penalty, identify whether the FTA applied the correct provision of Cabinet Decision No. 40 of 2017 (as amended by Cabinet Decision No. 129 of 2025), and argue for reduction or cancellation where: the taxpayer had a reasonable excuse; the FTA failed to follow its own procedural requirements; the penalty is disproportionate to the violation; or a voluntary disclosure was filed before the audit commenced.

4. Tax Disputes Resolution Committee (TDRC) Representation

If the FTA upholds its decision after reconsideration, we manage the escalation to the Tax Disputes Resolution Committee under Art. 28 of Federal Decree-Law No. 28 of 2022 and Ministerial Decision No. 247 of 2023. We prepare the TDRC submission — updating the legal argument in light of the FTA's reconsideration response — arrange the 50% deposit where required, and represent your interests through the TDRC hearing process. The TDRC file builds directly on the technical foundation laid in the original reconsideration submission.

5. Voluntary Disclosure to Mitigate Penalty Before Reconsideration

In some cases — particularly where an FTA audit has identified errors but no penalty decision has yet been issued — a voluntary disclosure under Art. 10 of Federal Decree-Law No. 28 of 2022 filed before the formal assessment can significantly reduce the penalty exposure compared to contesting a post-assessment penalty at reconsideration. We assess whether a voluntary disclosure is more cost-effective than a reconsideration challenge and manage whichever path best protects the client's position.

6. Post-Decision Compliance & Risk Mitigation

Following resolution of a reconsideration or TDRC dispute, we review the systemic cause of the original assessment or penalty and implement process improvements — updated VAT coding, supply classification matrices, invoice checklists, and periodic reconciliation procedures — to prevent recurrence. We also advise on instalment payment arrangements with the FTA for confirmed tax liabilities to manage cash-flow impact under Cabinet Decision No. 74 of 2023.

Our Reconsideration Preparation Methodology

  1. Decision Analysis & Grounds Identification: We obtain and analyse the full FTA decision — assessment notice, penalty schedule, or administrative decision — and identify every challengeable element: errors of law, errors of fact, procedural defects, disproportionate penalties, expired limitation periods, and applicable mitigating factors under Art. 27 of Federal Decree-Law No. 28 of 2022 and Cabinet Decision No. 74 of 2023.
  2. Evidence Gathering & Document Reconstruction: We collect and organise all contemporaneous evidence supporting the challenge: accounting records, tax invoices, contracts, export documentation, customs declarations, bank statements, correspondence with the FTA, and any voluntary disclosures previously filed. We identify gaps and advise on affidavits or third-party confirmations where original documents are unavailable.
  3. Legal Argument Construction: We draft the substantive legal argument — citing the specific articles of Federal Decree-Law No. 28 of 2022, Federal Decree-Law No. 8 of 2017, Cabinet Decision No. 52 of 2017, Cabinet Decision No. 40 of 2017 (as amended), and Cabinet Decision No. 129 of 2025 — with a precise schedule of the disputed tax and penalty amounts and the specific relief requested from the FTA.
  4. Reconsideration Submission: We submit the completed reconsideration package through the FTA e-Services portal as authorised Tax Agent (TAN: 30003958) within the 40-business-day deadline under Art. 27, with a submission confirmation retained for the file.
  5. FTA Response Management & Escalation Planning: We monitor the FTA's 40-business-day response window, manage any FTA information requests during the review, and — upon receipt of the FTA's outcome — immediately assess whether the result warrants acceptance, partial acceptance, or escalation to the TDRC within the further 40-business-day window.

When Should Businesses File an FTA Reconsideration Request?

1. Receipt of an FTA Tax Assessment

When the FTA raises a VAT or Excise Tax assessment under Art. 43 of Federal Decree-Law No. 28 of 2022 — whether following an audit, desk review, or risk-based selection — the affected business has 40 business days to file a reconsideration. Failure to file within this window results in the assessment becoming final and enforceable. Even where the assessed amount appears correct, a reconsideration preserves the right to challenge the penalty component and negotiates the payment timeline.

2. Receipt of an Administrative Penalty Notice

Administrative penalties under Cabinet Decision No. 129 of 2025 — for late registration (AED 20,000), late filing (AED 1,000 / AED 2,000), inaccurate returns (30% surcharge), failure to keep records, or failure to display prices inclusive of VAT — are all subject to reconsideration challenge. The FTA has discretion to reduce or cancel penalties where there is a valid excuse, procedural error, or first-time violation without intent. A well-argued reconsideration commonly achieves full or partial penalty cancellation.

3. FTA Decision on a Refund Claim

Where the FTA reduces or rejects a VAT refund claim — disallowing input tax credits, disputing zero-rate conditions, or requiring additional export evidence — the affected business may challenge the refund decision through reconsideration. We prepare the refund reconsideration with the complete evidence package (export documentation, contracts, freight records, zero-rate analysis) and challenge each disallowance ground advanced by the FTA.

4. FTA Decision on Voluntary Disclosure

If the FTA rejects or partially accepts a voluntary disclosure — disputing the scope of the error corrected, the period affected, or the penalty reduction applied — the taxpayer may challenge the FTA's voluntary disclosure outcome through a reconsideration under Art. 27. This is particularly relevant where the FTA has raised an assessment on periods beyond those covered in the voluntary disclosure or has applied higher penalties than the voluntary disclosure framework permits.

5. FTA Deregistration or Registration Denial Decision

FTA decisions rejecting a VAT or Excise Tax deregistration application, or denying a registration request, are also subject to reconsideration. Where the FTA disputes the grounds for deregistration — for example, asserting that taxable turnover still exceeds the mandatory threshold contrary to the business's projection — we challenge the FTA's technical position with financial data, contract run-off schedules, and activity cessation evidence.

Common Mistakes in FTA Reconsideration Requests

1. Filing After the 40-Business-Day Deadline

The 40-business-day reconsideration window under Art. 27 of Federal Decree-Law No. 28 of 2022 runs from the date the FTA decision is received — not the date it is read or actioned. Businesses that delay instructing a Tax Agent, or that miscount the deadline (confusing business days with calendar days), lose the right to reconsider and face an immediately enforceable assessment. The deadline should be diarised the day the decision arrives and treated as a hard deadline with no exceptions.

2. Submitting a Reconsideration Without a Legal Argument

Many businesses submit a reconsideration through the FTA portal consisting only of a brief statement of disagreement, without citing the applicable statutory provisions, identifying the specific errors in the FTA's decision, or attaching supporting evidence. The FTA is not required to accept a reconsideration that does not comply with the content requirements of Cabinet Decision No. 74 of 2023. A reconsideration without legal substance is almost always unsuccessful — and the right to TDRC is then limited to the grounds actually raised.

3. Failing to Attach the Required Supporting Evidence

The reconsideration file must include all documents supporting the challenge: the original FTA decision, accounting records, tax invoices, contracts, customs declarations, bank statements, and any prior correspondence with the FTA. Submitting a reconsideration without documentary support leaves the FTA with no evidential basis to depart from its original decision. Evidence not submitted at reconsideration stage may be more difficult to introduce at TDRC stage.

4. Conceding the Tax and Only Challenging the Penalty

Some businesses accept the FTA's tax assessment as correct and limit the reconsideration to the penalty element. This approach is sometimes appropriate — but where the underlying assessment is wrong (incorrect rate, disallowed input tax that was recoverable, wrong period, or miscounted taxable supplies), the penalty challenge alone does not address the full liability. We always review the underlying assessment before advising on whether to challenge the tax, the penalty, or both.

5. Missing the TDRC Escalation Window After an Unfavourable Reconsideration

If the FTA upholds its original decision after reconsideration, the registrant has only 40 business days to escalate to the TDRC under Art. 28 of Federal Decree-Law No. 28 of 2022. Many businesses receive the FTA reconsideration outcome without adequate legal representation in place and miss this window, rendering the FTA decision final. Where we are engaged at reconsideration stage, we monitor the FTA response and immediately advise on whether to accept or escalate, ensuring no deadline is missed.

Why Choose Abdelhamid & Co for FTA Reconsideration Requests?

  • FTA-Licensed Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908 — authorised to file reconsideration requests, act in TDRC proceedings, and manage FTA dispute correspondence on behalf of registrants under tax.gov.ae.
  • Ministry of Economy Licensed — LC0106-01 | Licensed Auditor Registry No. 956 — dual-licensed for tax agency and statutory audit, providing cross-disciplinary credibility in FTA assessment disputes.
  • EAAA Fellow No. 124 | IASCA Fellow No. 1361 — recognised professional standing within the UAE and Arab accounting and auditing community.
  • Over 25 years of professional experience in UAE tax compliance, audit, and dispute resolution — extensive experience challenging FTA VAT assessments, Excise Tax penalties, refund denials, and registration decisions.
  • Technically grounded reconsideration files — every submission cites precise statutory articles, attaches all relevant evidence, and presents a quantified schedule of disputed amounts and relief sought, maximising the probability of FTA acceptance at first stage.
  • Full dispute chain coverage — from reconsideration through TDRC to court, with consistent legal positioning at every stage built on the original reconsideration file.
  • Free initial consultation — we assess your FTA decision, the prospects of reconsideration success, and the costs and timelines at no charge before engagement.

Frequently Asked Questions — VAT & Excise Tax Reconsideration UAE

What is an FTA reconsideration request under UAE tax law?

A reconsideration request is the formal mechanism under Art. 27 of Federal Decree-Law No. 28 of 2022 on Tax Procedures by which a VAT or Excise Tax registrant asks the FTA to review a decision it has made — including tax assessments, administrative penalty notices, refund rejections, and registration decisions. The request must be filed within 40 business days of receiving the FTA decision, and the FTA has 40 business days to respond. Filing a reconsideration is mandatory before escalating to the Tax Disputes Resolution Committee (TDRC).

What is the deadline to file an FTA reconsideration request?

Under Art. 27 of Federal Decree-Law No. 28 of 2022 and Cabinet Decision No. 74 of 2023, the reconsideration must be filed within 40 business days of the date the FTA decision is received. Business days exclude UAE public holidays and weekends. If the deadline is missed, the FTA decision becomes final and enforceable, and there is no right to reconsider or escalate to the TDRC. The deadline should be calculated and diarised immediately upon receipt of any FTA decision.

Can FTA administrative penalties be cancelled through reconsideration?

Yes — the FTA has discretion to reduce or cancel administrative penalties at reconsideration stage where the taxpayer demonstrates a valid excuse (force majeure, system failure, third-party error), where the FTA applied the wrong penalty provision under Cabinet Decision No. 40 of 2017 (as amended by Cabinet Decision No. 129 of 2025), where the violation was a first offence with no prior history, or where a voluntary disclosure was filed before the audit commenced. A technically argued reconsideration with supporting evidence achieves full or partial penalty cancellation in many cases.

What is the TDRC and when can I escalate to it?

The Tax Disputes Resolution Committee (TDRC) is an independent administrative tribunal established under Art. 28 of Federal Decree-Law No. 28 of 2022 and Ministerial Decision No. 247 of 2023. A registrant may escalate to the TDRC within 40 business days of receiving an unfavourable FTA reconsideration outcome. The TDRC requires a deposit of 50% of the disputed tax amount as a condition of filing (waivable in hardship cases). TDRC proceedings are independent of the FTA, and the TDRC may uphold, reduce, or cancel the challenged decision.

Do I need to pay the assessed tax before filing a reconsideration?

Filing a reconsideration under Art. 27 of Federal Decree-Law No. 28 of 2022 does not require prior payment of the assessed tax or penalty. However, late-payment surcharges under Cabinet Decision No. 129 of 2025 (2% per month, escalating to 4% per month 7 days after assessment) continue to accrue on any unpaid tax during the reconsideration period. TDRC filing requires a 50% deposit of the disputed tax. Where the reconsideration or TDRC is ultimately unsuccessful, the full liability plus surcharges becomes immediately enforceable.

What types of FTA decisions can be challenged by reconsideration?

Under Art. 27 of Federal Decree-Law No. 28 of 2022 and Cabinet Decision No. 74 of 2023, any FTA administrative decision may be challenged by reconsideration. This includes: VAT and Excise Tax assessments (Art. 43), administrative penalty notices under Cabinet Decision No. 40 of 2017 (as amended by Cabinet Decision No. 129 of 2025), VAT refund rejections or partial allowances, voluntary disclosure outcomes, registration and deregistration decisions, and FTA requests for information or record production that exceed the FTA's legal authority.

What evidence must accompany an FTA reconsideration request?

Cabinet Decision No. 74 of 2023 requires the reconsideration to include: (a) the original FTA decision being challenged; (b) a clear statement of the grounds for challenge with reference to the applicable statutory provisions; (c) all supporting documents (accounting records, tax invoices, contracts, customs declarations, bank statements, correspondence); (d) a Power of Attorney where a Tax Agent acts on behalf of the registrant; and (e) the specific relief sought (cancellation, reduction, or substitution). Incomplete reconsiderations are rejected by the FTA without consideration of the merits.

What happens if the FTA does not respond to the reconsideration within 40 business days?

Under Art. 27 of Federal Decree-Law No. 28 of 2022, if the FTA fails to issue a reconsideration decision within 40 business days of receiving the request, the reconsideration is deemed rejected by operation of law. The registrant may then escalate to the TDRC within 40 business days of the deemed rejection date — the 40-business-day TDRC window runs from expiry of the FTA's response period. Monitoring the FTA response deadline is therefore critical to preserving TDRC rights.

Contact Our VAT & Excise Tax Dispute Team

To engage Abdelhamid & Co as your licensed Tax Agent for FTA reconsideration requests, TDRC proceedings, or penalty challenges, contact us today:

Abdelhamid & Co Certified Public Accountants & Auditors LLC — Ministry of Economy Licence LC0106-01 | FTA Tax Agent TAN: 30003958 | Tax Agency TAAN: 20033908 | EAAA Fellow No. 124 | IASCA Fellow No. 1361

VAT & Excise Tax Services
About the Firm

Abdelhamid M. Abdelhamid — Partner & Managing Director
FTA-Licensed Tax Agent (TAN: 30003958) | Tax Agency (TAAN: 20033908) | Ministry of Economy Licensed Auditor (LC0106-01, Registry No. 956) | EAAA Fellow No. 124 | IASCA Fellow No. 1361 | Over 25 years of UAE tax, audit, and dispute resolution experience | FTA Registered Tax Agent | LinkedIn

Last reviewed: 28 April 2026 — updated to reflect Federal Decree-Law No. 28 of 2022 (Tax Procedures), Cabinet Decision No. 74 of 2023, Ministerial Decision No. 247 of 2023 (TDRC), and Cabinet Decision No. 129 of 2025 (amended penalties).

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