Ignorance is bliss but not in the case of VAT. The VAT is a very crucial matter in UAE and it should thus be dealt with carefully. Being careless about it may make a lot of hurdles for the companies based in UAE.
Businesses who fail to comply with the rules and regulations of VAT may have to face serious penalties. These penalties may harm the business as well as the reputation of the businessman in the market. that is why it is important for the companies to get help from the VAT consultants in UAE.
The VAT experts are preferred because they have a better understanding of the proceedings of the VAT. They know the right procedure to follow for UAE VAT registration. That is why they are a very good option to consider by the companies for their compliance with the VAT laws in UAE
No matter where you live if tax laws have been implemented on you, you must comply with them, or else you will have to pay heavy penalties.
VAT Penalties in UAE
A number of VAT penalties laws have been released in UAE so that people who violate the tax laws may learn their lesson.
The minimum penalty for tax violation s that of Dh500 but the value of penalty can be no more than the triple amount of the value of tax in question in case of any violation.
Fines for not complying with VAT registration in UAE
If a person does not register for VAT on the FFTA portal within the specified time limit, the penalty imposed would be Dh20,000.
For those who fail to deregister for VAT on time will be charged Dh10,000
Penalty on late tax Filing in the UAE
Businesses having the annual turnover of more than AED 375000 must file their monthly VAT returns whereas those having less than that would be obliged to pay their Tax returns on a quarterly basis.
Filing the tax returns have been made mandatory for the businesses or else they will be charged with heavy penalties as per the UAE laws.
Failing to file for tax return within the prescribed time limit will make the person pay Dh1,000 as fine for the first time. If the offence continues, the fine will be doubled to Dh2,000 if repeated within 2 years.
Penalty on wrong pricing
On the wrong pricing of items, the penalty charged would be Dh15,000.
VAT experts in UAEare playing a huge role in helping the people with filing the tax on time. They make sure that their clients pay tax on time. Most of the times, the businessmen especially the owners of small businesses fail to file their taxes on time because of having a lot of burdens and lack of knowledge.
The VAT experts are helping such businesses in complying with VAT rules in a very effective manner. They make sure that the company runs as per the UAE laws and follow all the tax-related rules and regulations.