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UAE Guide: What are ways to avoid Penalties in Dubai VAT Law?

VAT in UAE
UAE VAT Return

With the introduction of VAT Law in Dubai, business houses face problems and make small mistakes. These mistakes can cost the entity higher of AED 50,000 or 50% of Tax amount. As VAT is new to the region, it is imperative for business owners to be aware and comply with the new regulations in order to avoid high penalties. Penalties and fines are unwanted burden for your business.

Seven Tips

    1. Timely registration of your business
      A business entity must get itself registered under VAT laws if its aggregate taxable supplies exceed AED 375,000 in a year. However, a business entity may get itself registered under such law voluntarily if its aggregate taxable supplies exceed AED 187,500 in a year.
    2. Maintain Proper and accurate books of accounts
      The law requires businesses to keep a correct record of all their business income, costs and other associated VAT charges.
    3. Charge and Collect VAT in Dubai’, UAE
      Every business plays a role of collecting VAT on behalf of the government. Hence, they do this properly in order to avoid penalty.
    4. Timely filing of VAT return in Dubai, UAE
      VAT returns must be filed monthly if your company has an annual turnover above AED 150 million Or else quarterly.
    5. Obtain clarity on zero-rates and exempt supplies
      The FTA has exempted some businesses and some goods from VAT. Being zero-rated goods means that the goods are still VAT taxable, but at zero percent rate.
    6. Reverse Charge
      Reverse charges are the amount of VAT one would have paid on goods or services if they were purchased in the UAE. This case is seen when goods and services are imported from outside the GCC.
    7. Get the basics right
      You must aware of the basics of Dubai VAT law and take expert expertise whenever in doubt to avoid penalties under VAT law.

Points to Remember

    1. Avoid delay in getting or amending VAT registration, in case of any changes.
    2. Avoid poor planning of tax governance at your firm.
    3. Avoid failure to issue a valid VAT complied tax invoice in Dubai, UAE.
    4. Avoid Non Maintenance of proper books of accounts.
    5. Avoid delay in hiring of tax expertise.
    6. Avoid late filing or non-filing of periodic tax invoices.
    7. Avoid claiming wrong input of VAT in Dubai, UAE.

For more information on this topic, please visit our Insights Section or Contact Us
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1.     UAE Guide: What are VAT Groups in Dubai?

2.     UAE Guide: How to apply for VAT Registration in Dubai and Abu Dhabi?

3.     UAE Guide: How does VAT Regime work in Dubai?

4.     UAE Guide: How does VAT Return submission work in Dubai?

5.     UAE Guide: Duties and Eligibility for Tax Agent in Dubai

6.    UAE Guide: What are Steps to submit VAT return in Dubai?

7.     UAE Guide: What is Special VAT Refund in Dubai?

8.     UAE Guide: What is Impact of VAT on E-commerce Business in Dubai and Abu Dhabi?

9.     UAE Guide: How to Apply for VAT registration Number in Abu Dhabi and Dubai?

10.  UAE Guide: How to De-register your Firm under VAT in Dubai and Abu Dhabi?

11.  UAE Guide: What is FTA Audit File of VAT in Dubai?

12.  UAE Guide: What are the FTA Accredited VAT Accounting Software for Dubai?

13.  UAE Guide: What is Exports and Imports under VAT in Dubai?

14.  UAE Guide: What is Zero Rated and Exempt Supply Under VAT in Dubai and Abu Dhabi?

15.  UAE Guide: How to De-register from VAT in Dubai?

16.  UAE Guide: How to Claim Your VAT Refund in Dubai and Abu Dhabi?

17.  UAE Guide: What is Cabinet Decision No. 52 of 2019 by FTA for Abu Dhabi and Dubai?

18. UAE Guide: How to Generate Invoices under VAT Law in Abu Dhabi and Dubai?

19.  UAE Guide: What is the Provision of VAT refund for Business visitors in Dubai and Abu Dhabi?

20.  UAE Guide: What is Impact of VAT on Sale of Business in Dubai?

21.  UAE Guide: How to Amend VAT Details in Dubai and Abu Dhabi?

22.  UAE Guide: What are VAT Designated Zones in Dubai?

23.  UAE Guide: What is VAT on Telecommunication & Electronic Services in Dubai?

24.  UAE Guide: What is VAT on Financial Services & Islamic Finance Products in Dubai?

25.  UAE Guide: What is VAT on Real Estate Services in Dubai?

26.  UAE Guide: What is VAT on Education Services in Dubai?

27.  UAE Guide: What is Related Parties under VAT law in Dubai?

28.  UAE Guide: What is VAT Profit Margin Scheme in Dubai?

29.  UAE Guide: What is VAT Reverse Charge Mechanism in Dubai?

30.  UAE Guide: What is VAT Capital Assets Scheme in Dubai?

31.  UAE Guide: What is VAT on Healthcare in Dubai?

32.            UAE Guide: What is VAT Tax Group in Dubai?

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