How to avoid administrative penalties for VAT.

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ABU DHABI, 28th November, 2017.  It is recommended   by the Federal Tax Authority to take all necessary measures for  UAE business to register for the Value-Added Tax, VAT.

It will help avoid the risk of non-registration by 1st January, 2018 and as a result  the fines as stipulated in Cabinet Decision No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.

VAT will be due on the importation of certain goods, as well as the supply or deemed supply of certain goods or services made by “Taxable Person” (I e a VAT-registered person under the UAE VAT Law). Businesses must register for VAT if their annual taxable supplies and imports exceed the mandatory registration threshold of AED375,000.

Those who are not able to submit a registration application within the timeframe provided in the Tax Law will have an administrative penalty of AED20,000.

VAT registration form is available 24/7 online on FTA’s portal. It should be completed only by the authorized signatory of the business e.g. director, shareholder, holder of power of attorney on behalf of the business.