What are some administrative penalties for non-compliance with UAE VAT Law?
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As we talk about VAT in the UAE and its impact on the country, it is also noteworthy to mention that violation of VAT laws leads to some serious penalties. The UAE had listed administrative penalties that will be imposed in case of non-compliance. It’s important for taxpayers to be aware of the violations and fines. We list down a few penalties.
| Administrative Penalty (AED) | Description of Violation |
|
Failure to keep the required records and other information specified in Tax Procedures Law and the Tax Law |
| (20,000) | Failure to submit the data, records and documents related to Tax in Arabic to the Authority when requested |
| (20,000) | Failure to submit a registration application within the timeframe specified in the Tax Law |
| (10,000) | Failure to submit a deregistration application within the timeframe specified in the Tax Law |
|
Failure to inform the Authority of any circumstance that requires the amendment of the information pertaining to the tax record kept by Authority. |
|
Failure to submit the Tax Return within the timeframe specified in the Tax Law. |
| The Taxable Person shall be obligated to pay a late payment penalty consisting of: - (2%) of the unpaid tax is due immediately once the payment of Payable Tax is late. - (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid. - (1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of (300%). | Failure to settle the Payable Tax stated in the submitted Tax Return or Tax Assessment, within the timeframe specified in the Tax Law. |
Two penalties are applied:
|
The submittal of an incorrect Tax Return by the Registrant. |
| (5,000) for each tax invoice or alternative document. | Failure to issue the Tax invoice or an alternative document when making any supply. |
| (5,000) for each tax credit note or alternative document. | Failure to issue a Tax Credit Note or an alternative document |
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