After completing the first phase of registration, the Federal Tax Authority(FTA) invites all business to register for VAT before January 1st , 2018
The simplified VAT registration procedure is free of charge and can be completed online via the e-commerce portal on the FTA website: eservices.tax.gov.ae
- Applicant details (Entity and Activity Details, Trade License(s) and Manager Details)
- Contact information (Company’s address, contact details)
- Authorized Signatory documents (including scanned copies of his/her Emirates ID and Possport)
A Business must register if:
- The total value of its taxable supplies made within the UAE exceeds the mandatory registration threshold of AED 375,000 over the previous 12 month period.
What are taxable supplies?
Taxable supplies include the following:
- All supplies that are made in the U.A.E (whether subject to 5% or zero-rated tax under Article(45) of the Federal Decree Law No(8) of 2017), excluding supplies exempted under Article (45) of the Federal Decree Law No(8) of 2017).
- All goods or services imported from abroad.
A “supply” is any supply of goods or services in the UAE for consideration by any person in the course of conducting business.
All business must submit an application for registration as soon as possible to avoid the risk of missing the January 1, 2018 deadline, which would entail the Administrative Penalties stipulated in Cabinet Decision No.(40) of 2017, on Administrative Penalties for Violations of Tax Laws in the UAE. For more information, please consult the FTA’s official website.
List of penalties for failing to comply with tax laws
- On Monday afternoon, the UAE Council of Ministers announced the penalties for failing to comply with the country’s new tax laws. They range from Dh 500 to Dh 50,000 and See some of the violations and corresponding fines below.
|DESCRIPTION OF VIOLATION||ADMINISTRATIVE PENALTY (DH)|
|The failure of the person conducting Business to keep the required records and other information specified in Tax Procedures Law and the Tax Law||10,000 for the first time
50,000 in case of repetition
|The failure of the person conducting Business to submit the data, records and documents related to Tax in Arabic to the Authority when requested||20,000|
|The failure of the Taxable person to submit a registration application within the timeframe specified in the Tax Law||20,000|
|The failure of the Registrant to inform the Authority of any circumstances that requires the amendment of the information pertaining to his tax record kept by Authority||10,000|
|The failure of the Registrant to inform the Authority of any circumstances that requires the amendment of the information pertaining to his tax record kept by Authority||5,000 for the first time
15,000 in case of repetition
|The failure of the person appointed as a Legal Representative for the Taxable Person to inform the Authority of his appointment within the specified timeframe. The penalties will be due from the Legal Representative’s own funds||20,000|
|The failure of the person appointed as a Legal Representative for the Taxable Person to file a Tax Return within the specified timeframe. The penalties will be due from the Legal Representative’s own funds||1,000 for the first time
2,000 in case of repetition within 24 months
|The failure of the Registrant to submit the Tax Return within the time frame specified in the Tax Law||1,000 for the first time
2,000 in case of repetition within 24 months
The submittal of an incorrect
Tax return by the Registrant
Two Penalties are applied: 1. Fixed penalty of 3,000 for the first time, and 5,000 in case of repetition. If the Registrant does not make a voluntary disclosure, they will be fined 50 percent of the unpaid amount. If the Registrant makes a voluntary disclosure after being notified of a tax audit but before the Authority starts the tax audit, they will have to pay 30 percent. If the Registrant makes a voluntary disclosure before being notified of the tax audit by the Authority, the penalty will only be 5 percent.
|Failure by the Taxable Person to display prices inclusive of Tax||15,000|
|Failure to comply with the conditions and procedures related to transfer the Excise Goods from a Designated Zone to another Designated Zone, and the mechanism of processing and storing of such Excise Goods||The penalty shall be the higher of AED (50, 000) or (50 percent) of the tax, if any, chargeable in respect of the goods as the result of the violation|
|Failure by the Taxable Person to provide the Authority with price lists for the Excise Goods produced, imported or sold thereby||50,000 for the first time
20,000 in case of repetition
Sources: Decisions No.(39), and (40) for 2017 on Federal Tax Authority’s Service Fees, Administrative Fines.-@Gulf News