Dear Expert your opinion required on the below case:
1- Vat return period 01/07/2019 to 31/08/2019.
-2- Expenses reported in sectuion 9 of vat return AED- 7,875,321 (Including short term deposit of AED- 820,000.00) vat claimed as per return 352,766.05 (Calculation mistake)
Short term deposit of AED. 820,000.00 was erroniously recorded in taxable expenses.
How to ractify the error ?.
Since the value of deposit was included only in the amount of taxable expenses and VAT was not incorrectly claimed in the return, there is no impact on the VAT payable. So you would be entitled to rectify the same in the current return by reducing from value of taxable expenses. Please note that this was a gross mistake and would be definitely lead to query by FTA in the event of audit/assessment. If you can justify that it was a mistake, no undue benefit was received (input claim) and it has been subsequently rectified, it should be acceptable to them.0 Like
You can rectify in the current or upcoming return by reducing value of taxable expenses. For example if the taxable expenses to be reported in your current return is AED 5,000,000/- and input VAT of AED 250,000/- then reduce AED 820k and report taxable expenses of AED 4,180,000/- and input VAT of AED 250,000/-0 Like