According to the UAE Federal Tax Authority, severe penalties will be imposed on businesses or individuals in case of non-compliance with VAT Law or any violation of executive regulation. Thus, it is crucial for all the taxpayers to be well aware of all the situations that can lead to the imposition of VAT fines in Dubai, Abu Dhabi, UAE. Every company in UAE is well known for VAT registration and VAT return filing process and also the respective changes that must be made in routine business operations to incorporate tax.

It is mandatory for all business entities to follow the system, processes, and procedures to comply with the legal requirements of VAT law effective from January 2018. As per the UAE tax laws and regulations, VAT fines in UAE are charged for non-compliance with the administrative procedure that a taxable person is obligated to follow.

Kinds of VAT Fines and Penalties in Dubai, Abu Dhabi, Sharjah, UAE

Given below is the summary of different kinds of penalties and VAT fines applicable in case of VAT law violation or VAT law non-compliance in UAE:

• VAT Fines related to VAT Registration in UAE: When a taxable person fails to register for VAT within the specified timeline which is in 30 days from reaching the turnover limit, then a penalty of AED 20,000 shall be applicable.
• VAT Fines in case of Failure to Maintain the Records: If any taxable person conducting business in the UAE fails to keep the required records or any such information will be fined AED 10,000 for the first time and AED 50,000 in case of repetition.
• VAT Fines in case of Failure to Submit Records in Arabic: If any taxable person fails to submit any records or data or any other supporting documents when requested by the authority in Arabic AED 20,000 penalty will be imposed.
• VAT Fines related to VAT Deregistration in UAE: A penalty of AED 10,000 shall be applicable to a business failing to deregister within the time specified by the authority, that is 20 business days from the closure.
• VAT Fines in case of Failure to Display Prices Inclusive of VAT: The displayed price of the product should be the maximum price that the customer will have to pay while receiving the tax invoice. A VAT penalty of AED 15,000 would be levied in Dubai, Abu Dhabi, UAE if the taxable person fails to display prices inclusive of VAT.
• VAT Fines in case of Failure to Issue a Tax Invoice and Tax Credit Note: If the taxable person fails to issue a tax invoice or tax credit note, then they would be penalized with AED 5000 for each tax invoice or tax credit note.
• VAT Fines in case of Delay in Filing the VAT Return in Dubai, UAE: If a taxable person fails to submit the VAT Returns before the 28^thof the month following the tax period, then AED 1,000 will be charged as a penalty for the first time, and if it is repeated than AED 2,000 would be levied.

What are Aviaan Accounting VAT Fines Services in Dubai, Abu Dhabi, Sharjah, UAE?

We are here to support and guide you through all kinds of VAT fines and penalties as well as the VAT reconsideration application process. Our trained and certified accountants are well-versed with UAE VAT law and understand the obligation and implication of VAT on all kinds of businesses.

In addition to that, our team's main focus is to waive off the penalty charges and VAT fines by investigating, studying, and analyzing the situation on hand. We pursue all means to avoid any non-compliance of executive regulation or violation of VAT tax law by incorporating VAT at each level of business operations.

To get our customized solution package, please contact us at info@aviaanaccounting.comm or +971567952590.

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