Penalties and fines are unwanted burden for your business. We here at Aviaan Accounting help you avoid this extra burden by helping you and your business to be 100% complied with the Dubai VAT Law.
Let us first have a look on the different types of offences and penalties:
S.No. | Description of Offence | Quantum |
---|---|---|
1 | Failure to maintain proper records and information | 1st time- AED 10,000 Further- AED 50,000 |
2 | Failure to submit records when requested by the authority | AED 20,000 |
3 | Failure to register within timeframe | AED 20,000 |
4 | Failure to inform the authority in case of any amendment | 1st time- AED 5,000 Further- AED 15,000 |
5 | Failure to submit de-registration within time frame | AED 10,000 |
6 | Failure to appoint legal representative | AED 20,000 |
7 | Late payment penalty | *2% of the unpaid tax is due immediately *4% is due on the 7th day following the deadline for payment *1% daily penalty charged on any amount that is still unpaid 1 month following the deadline for payment (max 300%). |
8 | If Legal representative fails to do his duty | 1 st time- AED 1,000 Further- AED 2,000 (repeated within 24 months) |
9 | Failure to submit tax return within specified timeframe |
1 st time- AED 1,000 Further- AED 2,000 (repeated within 24 months) |
10 | Submitted incorrect tax return | FIXED 1 st time- AED 3,000 Further- AED 5,000 % based *50% of tax assessed(if not voluntary) *30% of tax Assessed (if voluntary, but after being notified) *5% of tax Assessed (If voluntary and before being notified) |
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