Penalties for Late VAT Filing in the UAE

Penalties for Late VAT Filing in the UAE

The Federal Tax Authority (FTA) imposes penalties for late submission of VAT returns to ensure compliance with tax regulations. The penalties are structured based on the delay period and are outlined as follows:

1. General Penalty for Late Filing

• AED 1,000 for the first instance of late submission.
• AED 2,000 for each subsequent late submission within the same calendar year.

2. Specific Penalties for Repeated Violations

• If a taxpayer repeatedly fails to file VAT returns on time, the penalties increase:
  • AED 2,000 for the second and any further violations within the same year.
  • The penalties are cumulative, and repeated violations within 24 months will attract higher fines.

3. Additional Penalties for Non-Compliance

• The FTA may impose additional penalties if the delay results in non-compliance with other VAT obligations, such as failure to maintain proper records or failure to register when required.

4. Important Filing Deadlines

• The final deadline for filing VAT returns for a specific tax period is typically:
  • 28th of the month following the end of the tax period (e.g., for the period ending 31 January 2024, the deadline is 28 February 2024).

5. Automatic Penalty Reversal

• If the taxpayer rectifies the late filing within the prescribed period, the penalty may be reversed automatically by the FTA, especially if the delay was due to genuine reasons and the taxpayer settles the administrative penalties.

6. Additional Notes

• Penalties are subject to change based on updates from the FTA or amendments to the tax laws.
• The FTA encourages timely filing to avoid penalties and ensure compliance.

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Summary Table of Penalties for Late VAT Filing:

Delay Period	Penalty Amount	Notes
First late submission	AED 1,000	Penalty applies for the first violation
Repeated violations within 24 months	AED 2,000 per violation	Penalties increase with repeated violations
Additional violations	AED 2,000+	For continued non-compliance

Note: The penalties are automatically reversed if the taxpayer settles the administrative penalties and the late filing is rectified within the prescribed timelines.

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For further assistance or specific cases, please refer to the FTA's official guidelines or contact their support services.