Penalty for failure to file VAT return
FTA imposes an administrative penalty of AED 1,000 for the failure of the Registrant to submit the Tax Return within the timeframe specified in the Tax Law. If the failure is repeated with 24 months then the penalty of AED 2,000.
In case of failure to pay tax payable
The taxable person shall be obligated to pay a late payment penalty of:
|Delay in days||Penalty|
|1st to 6th day||2 % of the unpaid tax amount|
|7th to one month||4 % of the unpaid tax amount|
|After one calendar month||1 % daily on the unpaid tax amount but maximum of 300%|
Submission of incorrect tax return
A fixed penalty of AED 3000 for the first time and AED 5000 in case of repetition.
Percentage based penalty
- 5% if registrant makes a voluntary disclosure before being notified of the tax audit
- 30% if registrant makes disclosure after being notified of tax audit but before starting of audit
- 50% if tax audit is started or registrant is asked for information relating to tax audit, whichever is earlier
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