Administrative Penalties for Violation VAT Law
Federal Decree Law No. (8) Of 2017 on Value Added Tax issued Resolution on Administrative Penalties for VAT law violation.
According to the Article (76) of the Federal Law the Authority shall issue an Administrative Penalty assessment to the person and notify the person the same within five business days as of the date of issuance in any of the following case:
- Failure by the taxable person to display prices inclusive of taxes
- Failure by the Taxable person to notify the Authority of applying Tax based on the margin according to the According to the Article (43)
- Failure to comply with the conditions and procedures related to keeping the Goods in a designated zone or moving them to another designated zone.
- Failure by the taxable person to issue the Tax Invoice when making any supply of services and goods.
- Failure by the taxable person to issue the Tax Credit Note.
- Failure by the taxable person to issue comply with the conditions and procedures regarding the issuance of Electronic Tax Invoice & Electronic Credit Notes.
Table of Violations and Administrative Penalties related to the Implementation of the Tax Procedures
|Failure to keep records and other information specified in Tax Procedures Law||· 10,000 AED for the first time
· 50,000 AED in case of repetition
|Failure to submit the data, records and documents related to Tax in Arabic to the Authority when requested.||AED20,000|
|Failure of the Taxable person to submit registration application within the time frame specified in the Tax Law.||AED20,000|
|Failure of the Registrant to submit a deregistration application within the timeframe specified in the tax law.||AED10,000|
|Failure of the Registrant to inform the Authority for any circumstances that requires the amendment of the information pertaining to tax record kept by Authority.||· 5,000 AED for the first time
· 15,000 AED in case of repetition
|Failure of the Tax Registrant to submit the Tax return within the time frame specified in the Tax Law.||· 1,000 AED for the first time
· 2,000 AED in case of repetition within 24 months.
|The Failure of the taxable person to settle the Tax stated in the Submitted Tax Return or Tax Assessment he was notified of within the time frame specified in the Law.||The Taxable Person shall be obligated to pay a late payment penalty consisting of:
– 2% of the unpaid tax is due immediately once the payment of payable tax is late.
– 4% is due on the seventh day following the deadline for payment on the amount of tax which is still unpaid.
– 1% daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment within the upper ceiling of 300%
|The submittal of an incorrect Tax return by the Registrant.||· 3,000 AED for the first time
· 5,000 AED in case of repetition