FINES, PENALTIES FOR VAT DUBAI

FINES, PENALTIES FOR VAT DUBAI

Fines for tax violation:

So it’s time that we reached when non-compliance will cost a lot for doing business in Dubai – UAE. Fines are imposed for tax violations in UAE. That makes it clear that businesses can’t fool the system.
The cabinet decided that fine must be minimum of DH500 and maximum of three times of the transaction under discussion.

The committee chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum finalized the matter. We will discuss these fines one by one.

  • Failing to keep records:
    The UAE tax law states that business needs to maintain appropriate records supporting tax matters. Failing to do so will charge DH1000 fine first time and if the offence is of repetitive nature the fine might reach up to DH50000.
  • Tax registration services and the issuance of an electronic tax registration certificate will be free of charge, the decision said. An attested paper registration certificate, however, will carry a Dh500 fee, whilst registration — and renewal — fees for tax agents were set at Dh3,000 for three years.

The registration and renewal fee for an accounting software provider will be Dh10,000 for one year, whereas registering a designated zone will cost Dh2,000 per year. While there are no service fees associated with registering a warehouse keeper or issuing an electronic warehouse keeper registration certificate, an official printed certificate will cost Dh500, the decision said.