5 TIPS TO AVOID VAT PENALTIES IN UAE
Have you ever heard of VAT Returns Fines and Penalties in The UAE for Non Compliance. Violation of Tax Law in UAE will result STIFF PENALTIES AS HIGH AS AED 50,000 VAT Implementation: Jan 1, 2018 VAT Implementation: Jan 1, 2018
#Tip 1
Register for VAT within time frame:
VAT Registration is mandatory if annual turnover of company is equal to or more than AED 375,000 in last 12 months or expected in next 30 days. Application needs to be submitted within 30 days of archiving the mandatory threshold limit. However business can also apply for Vat registration voluntarily if turnover is between AED 187,500 to AED 375,000.
#Tip 2
Maintain regular Accounting books & records:
Both register and unregister companies under VAT should maintain regular Accounting books & records as prescribed in law to avoid penalties & for VAT audit compliance.
#Tip 3
File VAT return & Pay VAT before due date as per your tax period:
Companies should check & comply as per tax periods mentioned in their VAT certificate to avoid late filing & payment penalties.
# Tip 4
Understand Zero rates & exempt suppliers.
The FTA has exempted some priority business sector from VAT and zero rated supplies still taxable but @ 0%.
#Tip 5
Train your staff & be aware of your rights
Help your staff to de-mystify VAT by providing on the job training and a framework to raise, clarify VAT queries & rights.
This blog post is written by Mr. Dilip. Feel free to call our Tax Advisor today for a quality consultation relating your VAT related queries. Please send inquiry to taxadvisor@flyingcolour.com or call +971 4 4542366.
