Taxable persons are required to issue a tax invoice or an alternative document while making a taxable supply. Failure to do so will attract a penalty of AED 2,500 for each missing tax Invoice or alternative document. You can use robust invoicing software to ensure invoices are issued on time without any delay. Spancom in Dubai can advise you further on this matter.
Apply for VAT Deregistration On Time
Businesses failing to apply for VAT deregistration within the mandatory deadline will incur a penalty of AED 1,000 per month up to a maximum of AED 10,000. As per the UAE Tax Procedures Law, a tax registrant must apply for VAT deregistration within 20 business days of the occurrence of any of the following reasons:
• The taxable person stops making Taxable Supplies
• The value of the Taxable Supplies made over a period of 12 consecutive months is less than the Voluntary Registration Threshold and said Registrant does not meet the condition stipulated in the UAE VAT Law
File VAT Returns Within the Timeframe Prescribed
As per the Executive Regulations of the UAE VAT Law, the FTA must receive the tax return no later than the 28th day following the end of the Tax Period concerned or by such other date as directed by the Authority. Failing to file the VAT returns within this deadline will make you liable for a penalty of AED 1,000 for the first time and AED 2,000 if repeated within 24 months. Tax agents in the UAE can save you from this penalty by helping you to properly file the VAT returns.
