If you run a business in Dubai, filing a VAT return is an
important aspect of avoiding the Federal Tax Authority (FTA). But what happens
if they fail to file on time?
Filing deadlines
In Dubai, VAT returns are usually filed either monthly or
quarterly depending on your business's annual turnover. The deadline for VAT
filling is the 28th day of the month after the deadline of the tax period. For
instance, in case your VAT
Return filing Dubai period runs out in December, you have to submit your return by
January 28.
Consequences
Yes, there are penalties for late VAT return filing in Dubai. If
you file late VAT returns in UAE, you may face:
1.
Initial Fixed Penalty: AED
1,000 for the first offense.
2.
Repeated Offenses: If you file
late VAT returns again in UAE within 24 months, the penalty increases to AED
2,000.
3.
Added fines: Your business may
have to pay additional fines in UAE in the form of a percentage of the unpaid
VAT tax amount.
How does late VAT filing impact your business?
Other than the financial impact, late filing would also damage
your business's reputation with the FTA. Continued non-compliance may even
attract stricter audits and more frequent checks that nobody wants to
encounter. If VAT calculations feel overwhelming, hire a VAT consultant or
accountant from Valkyrie to handle it for you.
Bottom line
Delayed VAT filing in Dubai may become expensive for you financially and operationally. Headhunting Services Dubai can help you find the right accountant for this job. Compliance is not about just checking the compliance box; it is about smart business as well!
For more information, you can visit our website https://valkyrie.ae/ or call us at +971508255943
