VAT Penalties in Dubai

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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 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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Business Bay,
Dubai, UAE
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UAE: +971 567952590

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