Filing incorrect tax returns in the UAE is liable for a fixed penalty of AED 1,000 for the first time and AED 2,000 in case of repetition. Apart from that, the following penalty will apply:
• As an exception to Clause 1 of this penalty, if the incorrect Tax Return results in a Tax difference less than the fixed penalty (AED 1,000), a penalty equal to that Tax difference of at least 500 shall be imposed.
• Anyone correcting their Tax Return before the due date of payment shall be excluded from the penalty imposed under Clauses 1 and 2 of this penalty.
Train Your Staff Regarding VAT Compliance
Ensure that your staff members are aware of the applicability of VAT on various goods and services as well as the corresponding VAT rates. The employees must have proper knowledge about zero-rated supplies, exempted supplies, and standard-rated supplies. VAT consultants in Dubai can provide VAT training for your staff on all the important aspects and procedures.
Stay Updated on Tax Regulations
The tax registrant must have a good knowledge of the UAE VAT Law and the Tax Procedures Law. Moreover, the business owners and the concerned employees must be updated about the various VAT guides, bulletins, and public clarifications being issued by the FTA periodically. Keeping track of such things will help you to ensure you have not missed any important update or amendment related to the UAE tax procedures. Tax agents in the UAE can help you stay updated on important regulatory updates.
