Following are the VAT penalties associated with non-compliance of VAT regulations.
- A penalty fee of AED 20,000 will be charged for Failure to submit a registration application within the timeframe specified by the tax law.
- For failure to submit VAT returns in the time frame specified by the FTA – AED 1,000 for the first time. AED 2,000 in case of repetition within 24 months. The taxable person will incur a late payment penalty as follows:
2% of the unpaid tax is due immediately.
4% is due on the seventh day following the deadline for payment.
1% daily penalty will be charged on any amount that is still unpaid one calendar month after the deadline for payment, up to a maximum of 300%.
- A fee of AED 10,000 will be levied for the failure to submit a deregistration application within the timeframe specified by the tax law.
