VAT Penalties in UAE

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 UAE VAT Law.

Let us first have a look on the different types of offences and penalties:

S.No.Description of OffenceQuantum
1Failure to maintain proper records and information1st time- AED 10,000 Further- AED 50,000
2Failure to submit records when requested by the authorityAED 20,000
3Failure to register within timeframeAED 20,000
4Failure to inform the authority in case of any amendment1st time- AED 5,000 Further- AED 15,000
5Failure to submit de-registration within time frameAED 10,000
6Failure to appoint legal representativeAED 20,000
7Late 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%).
8If Legal representative fails to do his duty1 st time- AED 1,000
Further- AED 2,000
(repeated within 24 months)
9Failure to submit tax return within
specified timeframe
1 st time- AED 1,000
Further- AED 2,000
(repeated within 24 months)
10Submitted incorrect tax returnFIXED
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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