VAT Penalty Reconsideration for a Multi-Branch F&B Group
It is a chain of restaurants that runs 6 branches, specializing in food and beverage. Its size is categorised in the mid-sized businesses category. The business faces a problem regarding VAT penalties for missing deadlines.
The Challenge
Accumulated VAT Penalties Following Missed Filing Deadlines
The case is the chain of restaurants incurred a series of VAT penalties after there was a change in accountants in the organization that led to missed filing deadlines and contrary input tax claims. The fines kept piling up due to Cabinet Decision No. 49/2021, where the client was facing more FTA scrutiny.
Company Type:
Food & Beverage.
Business Type:
Restaurant groups.
Company Size:
Mid-Sized Business.
Number of Branches:
6 Branches.
Our Solution
A Structured VAT Penalty Reconsideration Plan
Upon a free consultation, our FTA-registered tax agents started with auditing the group’s entire VAT history and making the necessary amendments. Our plan went as follows:
Vat History Review
Reviewed the previous two years’ VAT returns at all the six branches to check on any lapses in filing and wrongly calculated input tax.
Voluntary Disclosure Filed
Filed a voluntary disclosure to correct any historical mistakes before the FTA noticed anything.
Penalty Reconsideration Submitted
File for penalty reconsideration with relevant documents for the late filing.
VAT Compliance Process Restructured
Redefined the group’s VAT schedule with branch-level checklists for future compliance.
Through this structured approach, ABT addressed the group’s historical VAT issues while establishing a more reliable process for ongoing compliance. Our VAT services provided the group with the support needed to manage its VAT obligations, correct past filing issues, and maintain accurate and timely submissions across all branches.
The Result
Improved VAT Compliance and Reduced Penalties
The amount of the outstanding penalties was considerably reduced following the reconsideration application, and all outstanding returns were up to date. The group is currently submitting VAT centrally through ABT without missing any deadlines after onboarding.
Facing VAT Penalties or Filing Issues?
ABT’s VAT experts can review your VAT records, identify compliance issues, and help you take the appropriate steps to address outstanding penalties and improve your VAT filing process.