Частные разъяснения - EN - 31 05 2023

Private Clarifications

Tax Procedures | TPGPC1


June 2023

Private Clarifications | Tax Procedures | TPGPC1 1

Contents

1. Introduction ............................................................................................................. 2
1.1. Short brief ......................................................................................................... 2
1.2. Purpose of this document ............................................................................... 2
1.3. Who should read this document? .................................................................. 2
1.4. Status of the document ................................................................................... 2
2. Purpose of Clarifications ....................................................................................... 3
3. Instances where Clarification requests will not be accepted ............................. 4
4. Submitting the Clarification form .......................................................................... 6
4.1 Who is qualified to submit the Clarification form? ....................................... 6
4.2 How to apply? ................................................................................................... 7
4.3 Who can submit the Clarification form on behalf of a person? ................... 7
5. Completing the Clarification form ......................................................................... 8
6. Fees ....................................................................................................................... 14
7. Response from the FTA to a Clarification request ............................................ 15
8. Disputing the Clarification ................................................................................... 16
9. Updates and amendments ................................................................................... 17


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1. Introduction
1.1. Short brief
The Federal Tax Authority (“FTA”) is the government entity responsible for the
administration, collection, and enforcement of federal taxes in the United Arab Emirates
(“UAE”).1
The following federal taxes apply in the UAE:
− Corporate and Business Tax – introduced with effect from 1 June 2023
− Excise Tax – introduced with effect from 1 October 2017
− VAT – introduced with effect from 1 January 2018
The FTA publishes guides, public clarifications, and references that help taxpayers
understand their federal tax obligations and ensure compliance with the UAE tax laws.
Taxpayers may also seek guidance from the FTA on specific queries on the application
of federal tax laws through the Private Clarification (“Clarification”) mechanism.

1.2. Purpose of this document

The purpose of this document is to provide guidance on who may apply for a Clarification,
as well as instances where a Clarification application may be rejected.
This guide will help you:
• Provide accurate answers to the questions on the Clarification form by explaining what
information is required, and
• Understand the icons and symbols you might see as you complete the form.
1.3. Who should read this document?
This document should be read by any person wishing to request a Clarification from the
FTA. It is intended to be read in conjunction with the relevant law and other relevant
guidance published by the FTA.
1.4. Status of the document
This guide is not a legally binding statement, but is intended to assist in understanding in
which instances a person may apply for a Clarification. This guide is not intended to
provide comprehensive details associated with taxes and is not intended for legal
reference.

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2. Purpose of Clarifications
A Clarification is an official document issued by the FTA in response to a query from the
applicant regarding the tax treatment of specific transactions. The Clarification aims to
provide guidance on the FTA’s understanding of the tax legislation and its proper
application to the facts stated in the application. While the FTA will aim to provide an
answer based on the facts stated by the applicant, the FTA will not verify such facts and
will rely solely on the provided information.
The Clarification provided by the FTA applies only to the applicant and the specific
transaction(s) for which such Clarification has been requested. There is no precedence
for the Clarification set out by the FTA’s response that could be applied to other persons
or to the applicant for materially different transactions.


1 Article 4(1)(i) of Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority
and its amendments.

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3. Instances where Clarification requests will not be accepted
The FTA will not provide a Clarification in the following instances:
• The clarification form is not filled correctly or is incomplete, for example:
o The relevant supplies have not been explained in sufficient detail. The application
should clearly state the type of supply/transaction, how it is supplied, who is
supplying what to whom, etc.
o The facts have not been clearly stated.
o No technical or legal analysis has been provided.
o The relevant supporting documents to prove the relationships and the stated
supplies and other underlying relevant facts, have not been attached.
o No summary of the above is provided in the application form, for example the fields
only refer to attached documents, e.g. only state “refer to attached letter”.
• The clarification request is not clear.
• The Application is submitted by a person other than an authorised signatory, including:
o Instances where proof of authorisation was not provided.
o A tax agent applying for a clarification for a specific client without providing the
client’s details, including name and TRN.
o A natural person indicated as “Applicant” in respect of a clarification request related
to a company.
o An application is submitted in the name of a member of a tax group other than by
the representative member.
• A previous clarification has already been issued to the person on the same matter.
• The clarification request is about transactions which the FTA believes are for the
purposes of avoiding tax or seeks tax planning advice.
• The application is related in any way to a tax inspection, audit, or assessment by the
FTA.

Currently, Clarifications will only be available for VAT and Excise Tax. The FTA will
announce the date from which clarification requests will be accepted for Corporate Tax.

The following are not Clarification requests and may need to be addressed through a
more appropriate channel:
• Reconsideration request
• Administrative penalty waiver request
• Administrative penalty payment by instalment request

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• Special Input Tax Apportionment method request
• Administrative exception request
• System technical enquiries
• Other matters not pertaining to the interpretation of the relevant tax law in the context
of specific facts




















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4. Submitting the Clarification form
4.1 Who is qualified to submit the Clarification form?

Any person may apply for a Clarification when all of the following requirements are met:
o The person has analysed the relevant tax law and regulations, as well as the relevant
publications by the FTA, and the answer is still uncertain. It is the responsibility of the
applicant to monitor all publications by the FTA including, but not limited to, the law,
regulations, decisions and guidance provided through Public Clarification, Guides etc.
o The person has an interest in the matter at hand (i.e. this is a genuine factual matter
that has a material impact on the person’s activities). In instances where the
Clarification application is submitted by the recipient of a supply made by another
person, the Clarification will be limited to the extent the facts provided impact on the
applicant. In such case, the supplier cannot rely on the clarification issued as the
supplier is not the applicant.
o The matter is not covered by previous Clarifications issued by the FTA to the same
applicant.
Note, however that, due to confidentiality reasons the FTA will, generally, not address the
tax obligations of another person in a Clarification issued to a third party.
For tax registrants, the Clarification form must be submitted by the authorised signatory
and from the e-mail address registered with the FTA. For non-registrants, the person
submitting the request must provide valid proof of authorisation to submit the request.
It is not required that:
• The person is a taxable person
• The person appoints a Tax Agent
• The matter relates to a transaction which has already occurred or is an active
transaction.

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4.2 How to apply?

The person may submit the Clarification form via the concerned person’s Emaratax portal
on the FTA’s website. Please refer to the relevant Emaratax guide for more information
on the process to submit the application.

4.3 Who can submit the Clarification form on behalf of a person?

Generally, the person (or the authorised signatory) seeking a Clarification in relation to its
business should submit the Clarification form. However, submissions will also be
accepted from:
• Appointed tax agents
• Appointed legal representatives
If the person is a member of a tax group, the request should be submitted by the
authorised signatory of the representative member of the tax group.
Tax advisors (who are not registered tax agents) are not permitted to submit any
Clarification requests on behalf of another person.


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5. Completing the Clarification form
The following guidance is designed to assist applicants to understand the questions in
the Clarification form in order to complete the form accurately. Further information on the
actual process of submitting the Clarification via Emaratax is provided in a separate
Emaratax guide.

1. Applicant Information
Note that these field will be prepopulated if a registrant applies for the private
clarification. In the case of a non-registrant, the fields will be pre-populated to
the extent information was provided as part of creating a user profile on
Emaratax.

Please select the relevant tax
account for which you need
Clarification
For registrants, please select the relevant TRN
pertaining to the tax type the clarification relates to.
If it relates to more than one tax type, the other tax
types can be selected at a later stage of the
application.
For non-registrants, please type “Not applicable”
and provide reasons for not being registered.
Name of the Applicant This field will be pre-populated based on the
information provided as per the user profile created
(non-registrants) or taxpayer records (registrants).
Please note that:
If the request relates to a company, the name of
the company should be reflected and not the name
of the natural person submitting the request.
If the request is from a tax group, the name of the
representative member should be reflected and not
the name of any of the other group members.


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Tax Agent Approval Number
(TAAN) (if applicable)
If the Clarification application is submitted by a tax
agent on behalf of a client, the TAAN will be pre-
populated based on the tax agent’s profile.
Please note that a tax agent may only submit
Clarification requests for the tax types the tax
agent is accredited and authorised. For example, if
a tax agent is only registered with the FTA as an
Indirect Tax agent, the tax agent may not submit
Corporate Tax Clarification applications. Even if
the tax agent is qualified as both Indirect and Direct
tax agent, the tax agent may only submit
Clarification applications in respect of the tax
type(s) the client authorised him to assist with.

2. Contact Details of the Applicant

Building name and number,
Street, e-mail address,
etc.
This information will be pre-populated based on the
user profile created or registrant’s taxpayer record.

3. About the Request for Clarification

Which tax does this request
relate to?

Please select from the drop-down list including:
• Value Added Tax
• Excise Tax
• Corporate Tax (This option will only be
available from the date Corporate Tax
Clarification requests are accepted)
Calculated fees amount This field is prepopulated based on the number of
tax types selected. If only one tax type is selected
the fee is AED 1,500. The fee is AED 2,250 if more
than one tax type is selected.
Does this request relate to any
previous Clarifications issued
by FTA?
Please review any Clarifications that you have
previously received from the FTA and avoid

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submitting duplicate Clarification requests or
requests on similar technical matters.
If yes, please provide the
reference number of the
previous Clarification
Please do not submit duplicate requests. If you
have similar and/or additional enquires which are
relevant to a previous request, please enter the
reference number of the previous Clarification
received here and list all Clarifications received
from the FTA.
Estimated tax amount that
is/may be impacted by this
technical Clarification (AED)
Please estimate the potential tax amount impacted
by your request. This can be either an additional
amount of tax payment or, a credit or refund of tax.
You may enter zero if you believe the amount
cannot be quantified.
Nature of the estimated tax
amount

Please specify the nature of the estimated tax
amount impacted by your request. For example:
• If it is related to VAT, please specify if it is in
relation to input tax, output tax, import VAT or
VAT due through a reverse charge mechanism
• If it is related to Excise Tax, please specify if it
is in relation to payable tax or deducible tax
Please specify the tax period
impacted by this matter. These
can be past, present or future
periods.
Please indicate all the tax periods impacted by the
matter. Note that different tax types have different
tax periods.
If, for example, the Clarification request relates to
VAT and the applicant submits quarterly VAT
returns, the tax periods may be referred to as
follows: VATQ1-2023 or VAT01/2023.
Does the Clarification relate to
a completed, current or
proposed supply chain /
transaction?

Please select from the drop-down options as
provided below:
• Proposed transaction(s)
• Current transaction(s)
• Completed transaction(s)

4. Background and Facts

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Please provide a brief
description of the background,
including transactions, steps
and the intentions of the
matter which is the subject of
the Clarification.
Please provide your input in no more than 20,000
characters. Please refrain from only referring to an
attached cover letter as the purpose of this
question is to provide a brief summary of the
relevant background facts.
Please provide any
documentary proof to support
the factual and legal grounds
on which the request is based.
Please attach the relevant supporting documents
to facilitate the processing of your request. This
could, for example, include sample invoices,
contracts, payment slips or other documents.
Please attach a covering letter
describing the Clarification
requested.
Please upload a cover letter in .pdf format which
clearly sets out all the required information.

5. Technical view

Specify the legal provisions
which are relevant to
assessing the tax treatment of
the matter which is the subject
of the Clarification.
Please detail the article numbers as well as the
name of the relevant tax legislation.
Specify any guidance issued
by the FTA which is relevant to
the technical position of the
matter which is the subject of
the Clarification.
Please include all relevant material that you have
reviewed and considered before raising this
request. These can be guides, awareness session
materials, e-Learning, quick references, or other
material. Please specify the relevant sections
and/or page references of the content you have
reviewed.
Details of any previous
Clarifications issued by the
FTA relevant to your
application.
This field is pre-populated based on the
clarifications previously indicated on the
application form.

Please upload any tax advice
you received for which you are
seeking Clarification.
Please provide any relevant tax advice that you
have received with regards to your application. You
may provide multiple documents and / or advice.

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This includes advice received from tax advisors
and tax agents. Please do not upload here a copy
of the cover letter already uploaded. If no tax
advice was received, leave the field blank.
No. of times you have
approached the FTA for
Clarifications in the last 12
months.
This field is pre-populated with respect to all private
clarifications submitted on or after 1 June 2023 and
does not include any Clarification applications prior
to this date. The number of times you have
submitted a request for Clarification will not affect
your right to submit a new application.
What is the outcome of your
tax technical assessments of
this matter?

Briefly describe the tax treatment which you
consider to be correct based on your technical
analysis. Please refrain from only referring to an
attached letter.
What is the outcome of other
alternative tax technical
assessments of this matter?
Briefly describe the other tax treatments which you
have considered but do not consider to be correct.
Please describe your analysis
on the tax technical position
which you consider to be
correct in more detail.
Please elaborate on the analysis which you
consider to be the correct position in no more than
20,000 characters.
Please refrain from only referring to an attached
letter. Instead provide a brief summary of your
analysis and attach a separate letter in which the
detailed analysis is explained.
Please describe your analysis
on the alternative tax technical
position(s) in more detail.
Please elaborate on the alternative analysis to the
above position which you have considered in no
more than 20,000 characters.
Please provide the question(s)
which you would like the FTA
to answer.

Please provide the questions which relate to the
matter which is the subject of this specific request
in no more than 500 characters. Generally, try to
limit the number of questions to 5. The FTA may
not be able to address all the questions on an
individual basis.
Please refrain from only referring to an attached
letter. Instead, state the questions in a clear and

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concise manner. Further detail on the questions
may be provided in a letter attached to the
application.
Please upload a formal letter
for FTA for seeking
clarification.
Kindly upload a .pdf version of the cover letter.

6. Review and declaration

Summary of fields previously
completed
Review the details, pre-populated based on
information provided in the Clarification
application.
Authorised signatory

Pre-populated based on taxpayer data
(registrants) or user profile created (non-
registrants).
Declaration

Please confirm that all the information provided is
correct, all relevant supporting documents are
uploaded, that you have considered the relevant
tax legislation and other guidance provided by the
FTA and that you agree to provide further
information if requested by the FTA.

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6. Fees
From 1 June 2023, fees are payable in respect of private clarifications.2 If the private
clarification relates to only one tax, the fee is AED 1,500 per application. If the private
clarification relates to more than one tax, the fee is AED 2,250 per application.
Please note that to qualify for the AED 2,250 fee per application, the questions have to
be related to the same transaction and parties, otherwise separate applications have to
be submitted.
The fees can only be paid via the Emaratax portal using a valid card.
Please note that these fees are generally non-refundable. The onus is, therefore, on the
applicant to ensure that only valid, correct and complete applications are submitted.
The FTA may refund, at its discretion, the Clarification fee received for a private
clarification request if the FTA does not issue the private clarification required.


2 Cabinet Decision No. 7 of 2023 on the amendment of some provisions of Cabinet Decision No. 65 of 2020
on Fees for the Services Provided by the Federal Tax Authority.

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7. Response from the FTA to a Clarification request
In most cases, it will take the FTA up to 50 business days to issue a Clarification. If the
application is incomplete, or additional information is required, the FTA will ask the
applicant to provide additional information or documentation. After providing the additional
information or documentation, the 50 business days to issue a Clarification will be
calculated from the date the additional information is received.
Kindly note that requests or further information submitted after 3 pm on a business day,
during a weekend or a federal public holiday, will be regarded as being received on the
following business day.
Furthermore, if the case is relatively complex (e.g. the FTA is required to refer to other
government entities), the FTA may extend the abovementioned time limit. In such case,
you will be notified of the extension.
The status of the application will be reflected on your dashboard on Emaratax. Once the
Clarification is issued, you will be able to download the Clarification from your Emaratax
portal.
The answer provided by the FTA is based on the facts provided by you at the time the
completed Clarification form is submitted, on the additional information that was provided
in response to an information request, and on the applicable legislation. It is the person’s
responsibility to stay up to date with any changes in legislation or the views of the FTA as
evidenced by its official publications.
Please note that the Clarification issued by the FTA is of a confidential nature, and should
not be shared with, or used by any third parties.


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8. Disputing the Clarification
The FTA considers itself administratively bound to follow the position set out in the
Clarification where the factual circumstances are materially the same as set out in the
clarification form.
Please note that Clarifications are not considered to be a decision by the FTA, but rather
the FTA’s view on the application of the applicable legislation based on a specific set of
facts.
Consequently, Clarifications are not subject to the dispute resolution process and
applicants may not apply for a reconsideration or review in respect thereof. The applicant
may, however, submit a new Clarification request if there are any materially new
information which were not previously shared with the FTA as part of the previously
submitted request in respect of which a Clarification was issued.


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9. Updates and amendments
Date of amendment Amendments made
December 2022 • Revised the whole guide for simplification and
amendment of content in light of recent updates.
• Addition of section 7 to clarify that Clarifications do not
constitute an official decision by the FTA and is,
therefore, not subject to the dispute resolution process.
June 2023 • Revised the whole guide for simplification and
amendment of content in light of recent updates.
• Removed references to eServices.
• Updated description of fields in Clarification application as
per Emaratax.
• Addition of a section on fees for submitting clarification
requests.