Key UAE VAT Penalties: Registration, Deregistration, Late Filings, Payments, Incorrect Returns, Record-Keeping Compliance.

• UAE introduced VAT in 2018 to diversify revenue streams
• Compliance with VAT laws is essential to avoid penalties
• FTA enforces strict rules for businesses to meet VAT obligations
• Key VAT penalties under UAE VAT law:
• Failure to register for VAT incurs AED10,000 fine
• Failure to deregister for VAT incurs AED1,000 for first offense, AED1,000 per month for subsequent violations
• Late VAT filings incur AED1,000 for first offense, AED2,000 for subsequent violations
• Late VAT payments incur penalties based on outstanding amount
• Incorrect VAT return submission incurs AED3,000 for first-time violation, AED5,000 for repeated non-compliance
• Failure to maintain proper records is required by businesses

Source: sovereigngroup.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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