Ensuring VAT compliance in the UAE as per relevant tax laws and regulations is essential for the smooth functioning of your business. The Federal Tax Authority (FTA) will impose hefty penalties on your business if any act of non-compliance is detected. Attracting hefty VAT penalties in the UAE will break the back of your business apart from denting your reputation. Tax agents in the UAE can help you to avoid VAT penalties by guiding you on the tax regulations and procedures. Read the following article for some key tips to avoid UAE VAT penalties:
Carry Out VAT Registration On Time
As per the UAE VAT Law, businesses making taxable supplies in the UAE must register for VAT if the value of their taxable supplies and imports exceeds the mandatory registration threshold of AED 375,000. Businesses that meet the criteria of VAT registration in the UAE will incur a penalty of AED 10,000 if they fail to comply with this requirement. Spancom advise eligible businesses to register for VAT without delay to avoid relevant penalties.
Keep Accurate Records as Per the UAE Vat Law
You need to keep the required records and other information as per the UAE Tax Procedures Law and the Tax Law to avoid hefty penalties. If non-compliance is detected, the FTA will impose a fine of AED 10,000 for the first time and AED 20,000 in case of repetition. Apart from avoiding VAT fines in the UAE, keeping accurate records will come in handy for you during tax audits, filing VAT returns and during the external audit process as well. Keeping the records and information will be required to claim input tax without any delay.
