UAE Guide: VAT Penalties in Dubai
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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