On October 14, 2020, the UAE Federal Supreme Court renders judgment on an appeal filed by the UAE Federal Tax Authority, subjecting voluntary disclosures of UAE based businesses to penalties of up to 300% of the tax dues.
Additionally, the penalties may be counted from the due date of the tax return and not from the date of voluntary disclosure.
Most taxpayers don’t intentionally incur tax penalties, but many who are penalised are simply not aware of the penalties or the possible impact on their finances.
Like any other tax system around the world, VAT in UAE also follows certain rules on penalties and fines to ensure proper compliance.
Below are ways which CRESCO can help you penalty-proof your business concerning VAT
- Register for VAT if the revenue exceeds the threshold limit.
- Maintain proper records of business transactions.
- Make sure you collect the right VAT on the sales made.
- File VAT return within the due date and facilitate payment of VAT before the deadline.
- Understand zero-rated and exempt supplies clearly; zero-rated supplied are taxable at the rate of 0%
- Help you understand the VAT basics in the right way.
We are here to support you throughout the challenging process in relation to your tax dispute and related matters. Our in-house UAE tax team consists of chartered accountants, legal and compliance consultants will be more than glad to assist you.