VAT registered business owners have a responsibility to submit their VAT return on time every 3 months (the first submission period after you register will vary for each company). The fine for failure of the person conducting Business to keep the required records and other information specified in Tax Procedures Law and the Tax Law is AED 10,000 the first time and AED 50,000 if repeated.
Administrative penalties for violations have been issued by Cabinet Decision No. (40) of 2017 and can be found under the Legislation section on the FTA website.
Every 3 months you need to calculate the difference between your input and output tax and submit the summary to the FTA with a breakdown of the emirates in which the sales were generated. Ideally, you should generate a P&L and Balance Sheet at the same time and there is a very good reason for doing this.
Although the deadline to submit your VAT return is 28th of the following month after the VAT Period, you should submit the VAT return by the 25th. You need to give yourself enough time to make the VAT payment to the FTA. To learn more about how to make the payment please refer to our blog post on Making A Payment To The FTA.
We are a British Accounting Firm in the UAE based in Dubai, we help local businesses to navigate the FTA requirements and we use the most advanced cloud accounting software in the World to make sure that you remain 100% compliant.
Speak to Mubashir Malik, Managing Partner at the firm. You can reach directly on email [email protected].
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