- The UAE government has updated its list in February 2022 of administrative penalties for tax law violations, with the minimum VAT penalty starting at 500 AED and increasing up to three times the value of the tax on the transaction. Cabinet Decision No. (49) of 2021 amended Cabinet Decision No. (40) of 2017 on the Administrative Penalties for the Violations of Tax Law in the UAE, reducing VAT penalties for non-compliance.
- VAT came into force in January 2018, with Tax Registration Business collecting taxes on behalf of the government.
- VAT-registered businesses submit their VAT return filing to the FTA at the end of the tax period.
- The penalties for non-compliance with VAT laws in the UAE include failure to keep required financial records, failure to submit documents in Arabic, delayed VAT registration and de-registration, failure to inform FTA of any changes in tax records, delayed filing or failure to file VAT return within a specified time, late VAT payment, and filing incorrect VAT return.
- Penalties range from AED 1,000 to AED 50,000, with fixed and percentage-based penalties applying in some cases.
Source nrdoshi.ae
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