VAT Penalty Policies In UAE
Published: 2019-11-21   Views: 82
Author: taxconsultancy
Published in: Small Business

Value Added Tax (VAT) Penalty policies have been administered by the UAE cabinet that shall be imposable on businesses for any violation found by the business organization in following the tax laws. Any person/business is obliged to follow the laws related to VAT stipulated by the law. The failures of any obligations lead to monetary or non-monetary fines or penalties incurred on the person/business. The monetary penalties shall fall in varied ranges depending on the violations. It is to be noted that no penalty shall amount to more than triple the value of the questionable transaction and will be no less than AED 500. The laws state the documentation necessary for the supply of goods, procedures related to goods transfer, generation of tax invoice, etc.  Here we enlist the conditions of violations related to VAT where the penalties shall be imposed. The penalties are also mentioned along with the violations.

Penalties related to VAT along with fine:

1. If a person/business fails to include and display the taxes along with the price, which is to display prices inclusive of tax; in such cases penalties fined is AED 15,000.

2. Business/person failing to notify Authority of tax application based on the margin: in such cases, the penalty will be AED 2,500 each time of the failure.

3. Any failures to abide by the procedures related to goods’ transfer in specific zones. In this condition, the penalty will be greater than AED 50,000 or 50% of the tax, if any, which has not been paid on goods and led to the violation.

4. While making any supply, a tax invoice or an alternate document must be issued. Failing which may lead to a penalty of AED 5,000 for each missing invoice.

5. A tax credit note, or an alternative document must be issued. Any discrepancies in this are a violation of VAT and shall be fined AED 5,000 for each missing note.

6. There are certain procedures a business/person must comply with regarding the electronic tax invoice issuance or the issuance of electronic tax credit notes. Failing any such procedure or any misconduct found is a violation. This is fined AED 5,000 for any incorrectly produced document.

Some other penalties and violations can include:

1. If the taxable person fails to disclose errors voluntarily on the Tax Assessment, Tax Return or Refund Application before being notified; he/she will be subject to a Tax Audit.

2. A person performing a tax evasion offense; wherein a person indulges in a deliberate omission or act with an intention of violating the provisions of the legislation issued taxes.

3. Any person failing to produce authentic data, records, files, tax receipts, on being asked for them is considered violating the laws.

4. Any registrant failing to apply for deregistration within the specific timeframe by the Tax law.

The above stated are penalty policies related to VAT applicable in the United Arab Emirates (UAE). These policies have been identified and authorized by the Decree-law. The first and second mentioned policies relate to Article 38 and Article 43 of the Decree-law. Cabinet shall issue penalties as per the stipulated policies for any offense or violation of the law being advocated.


However, a person holds all rights to object the penalties imposed on him/her within 20 business days from the date of generation of the penalty. Such an application must be presented with valid reasons within the specific time limit for reconsideration from the person and the authority is obligated to inform the result within 5 business days to the applicant after the application is received.

SF Tax Consultancy are reliable providers of Accounts and Tax related services for nearly 15 years. Having offices in major locales of UK, we’ve successfully served a diverse range of business ventures; Start-Ups, Sole Traders, Limited Companies and Landlords.

Author Bio

This article is written by Sarah Ferguson who is associated with "Sarah Ferguson Tax Consultancy". Sarah Ferguson Tax Consultancy is the leading company in UAE, providing VAT Consultancy and Advisory services. We have a team of specialists with solid experience in Global & Domestic Tax, which helps us in rendering high quality Tax & VAT Business Advisory & Compliance Services.

Article Comments


There are zero comments yet, why not be the first?

You must be logged in to post a comment.

Please log in or register to comment or reply to a comment.

Similar Articles

Advantage Engineering Where Is The Best Transcription Services? Metal Roofing Contractors In Chennai How Might I Locate The Best Cartoon Voice Over Organization? Which Is The Best Birth Certificate Translation Company In NYC? Best Handling Information For A Commercial Ice Machine Tips On How To Choose The Best Fiber Laser Cutting Machine Tips On How To Select Reliable Employee Payroll Processing Services How Does Power Factor Correction And Controllers Work & Its Benefits Examine And Repair Your Notable Plumbing Faults Bathroom Remodeling, Renovations Contractor At Port Orange FL Guiding Steps For Small Business In Finding The Right Payroll Processing Companies Mobile Computing Projects For Final Year Students Sparkle, That’s All! Roofing Contractor,Seamless Gutters At Louisville KY What Is The Long Term Trading Strategies ? Dry Cleaners Scottsdale AZ | Certified Dry Cleaners Scottsdale AZ | Expert Dry Cleaning Finding Best Institute For Nursing In Delhi Knowing The Different Forklift Working Out Tips Airport Transportation West Palm Beach FL | Limo Service West Palm Beach FL Find Marijuana For Sale Online With Kool MJ How Can A Corporate Meeting On Cruise Bring More Productivity To Your Business What Are The Attributes Of Good A EWP Training Helpful Tips For Passing Fundamentals Of Engineering Electrical And Computer Exam Are You Ready To Accept Cloud Based Accounting Software For Your Small Business? Non Woven Fabric Uses And Applications In Different Fields Deck And Porch Builders Baltimore - Experts At Creating Stunning Porch How To Get The Lowest Mortgage Rates Things To Know While Invest On Properties In Edmonton Alberta Choose Safety And Decoration For Your Dream Home With Premier Fencing Services Columbia Avail Customer Satisfaction Survey Templates Anytime Best Company That Provides Second Mortgages Loan To Investors & Clients Fundamentals Of Engineering Exam Study Guide For Serious Exam Takers How To Choose The Best Deck Builders Baltimore Benefits Of Aircraft Engine Monitors Find Free Survey Maker Online For Better Customer Awareness Customer Satisfaction Survey To Successfully Determine How Customers Really Feel Features & Specifications Of Engine Data Management 790 System In Aircraft To Clear FE Test - Go For Best : Choose Study Guide For FE Electrical And Computer Engineering Exam BUILD A ROBUST AND SOLID PLACE TO OCCUPY The Compact EDM 350 – A Right Choice For Your Aircraft Don’t Ruin Your Rights: Avail Services Of Most Dedicated Lawyers Fight For Your Legal Right! Helps To Choose Effective And Best Removalists Services At Melbourne Important Pros Of Hiring Removal Service Topmost Benefits Of Hiring Moving Services Friendly Removalists Berwick At An Affordable Price The Best Small Removals In Melbourne Friendly And Most Wanted Movers Melbourne Tremendous Removal Service Provided By Movers Melbourne Use The Priceless Moving Service Melbourne Discover The Advantages Of Weed Control Service Go Easy With Your Shifting With Singh Movers- The Furniture Removalists Melbourne Hire Licensed Removalists Company In Sydney For Relocation Services Make Your Move Stress-free With Removalist Service Melbourne Find Rental Properties Online - Homes That Are Way Below Market Value Discover The Perks Of Taking Apartments For Rent - A Great Alternative To Hotels Choose Melbourne Cheap Removals And Gain The Essential Benefits Shop Women's Felt Wool Scarf Online How To Start Online Store With Shopify In UAE? Starbuzz Bold Shisha Tobacco Flavors To Try On! VAT Penalty Policies In UAE Kratom 2019: Revisiting The Popular Herb Best-Selling Kratom Strains Of 2019 That You Must Try! Starbuzz Delhi Tea Vintage Shisha: An Earthy Flavor Worth-Trying Starbuzz Vintage Dark Mist, It’s Time To Get Bold! Hard Drive Disposal Westbury NY, Medical Record Shredding Westbury NY, USE A MEDICAID ASSET PROTECTION AT THE RIGHT TIME Benefits Of Custom Built Caravans : Built As Per Need Hire The Experienced Lawn Maintenance Services For Best Lawns FIND THE VEHICLE MECHANIC IN NASHVILLE TN Shopify In UAE – An Easy Approach To Make Online Store The Right Method To Write A Business Plan Buy African Beaded Namji Doll At Your Budget. Scrap Car Removal Toronto Getting In Touch With An Inmate At The Ottawa-Carleton Detention Centre Why Are Lego Accessaries Beneficial ? Things To Remember Before Designing Restaurant Interiors Leaf Bag Holder Corporate Finance: Main Features And Characteristics Experienced Home Inspector Brampton Things You Must Identify When Transporting Out Junk Car Removal Trash Bag Holder 7 Ways To Generate Sales Producing Leads

Articles Search cannot show any publisher Adsense adverts at the moment, we have decided to create a clone site to give our publishers the opportunity to use Adsense with their articles to create further revenue.

The clone site is your user details and articles have been copied from as of Mon 28th May 16:00 GMT, please can all users check their login details and make slight changes to their articles please.

Featured Articles