How to protect your Business from administrative Vat fines

According this law, if any, business failed to follow the tax law, there will be penalties which is not less than 500 AED and no more than the value of the tax on the transaction in question.

Below are some administrative penalties under VAT in UAE.

 

1. Failure to register for Vat in UAE

If taxable supply is more than 375000, then the company has to register for VAT. and they fail to register for VAT within the specified timeline, then they will have to pay a penalty of 20000 AED.

 

2. Fails to display the inclusive VAT amount

Every person should and must disclose the price of their goods and services. If he fails to display, then the administrative penalty will be 15000 AED. There is some exception in this,

If the supply is for export

If the customer is a registrant

If goods were imported

 

3. Fails to maintain the record of their business and information specified in Tax procedures Law and the Tax Law.

Every business has to maintain their records for a period of 5 years after the end of the tax period to which details relate. If they fail to maintain the record the, as per Administrative Penalty Law fine will be 10000 AED for the first time. And in case of repetition 50000 AED.

 

VAT registration in UAE

For VAT registration, you can also consult with our VAT expert to avoid any penalties imposed on your company and to get better insight into compliance with VAT Law rules and regulations.