tax amnesty dubai

Amnesty Scheme for VAT

The following changes were made under the amnesty scheme for VAT in UAE:

Waiver of Existing VAT Penalties:

70% reduction in the tax penalties if the following three conditions have been met:

  • The administrative penalty must be imposed under Cabinet Decision No of 2017 on Administrative penalties for violating Tax laws in the UAE before 28 June 2021
  • The tax registrant settles all payables by 31 December 2021
  • The tax registrants must pay 30% of unsettled administrative penalties payable on 28 June on or before 31 December 2021

Amendment of VAT Penalties post 28th June 2021

Late registration Penalty has been amended as follows:

Previous penalty: AED 20,000

After Amendment: AED 10,000

Submitting Voluntary Disclosures:

The penalty was calculated before the amendment based on difference between the tax that should have been paid and the tax that’s actually paid

The new penalty calculation is as follows:

  • 5% on the difference where the Voluntary Disclosure is submitted within one year from due date of submission of the Tax return, the Tax Assessment, or the relevant application.
  • 10% on the difference where the voluntary disclosure is submitted within the second year following the due date of submission of the Tax return, the tax assessment, or the relevant refund application.
  • 20% on the difference where the voluntary disclosure is submitted within the third year following the due date of submission of the Tax return, the tax assessment, or the relevant refund application.
  • 30% on the difference where the voluntary disclosure is submitted within the fourth year following the due date of submission of the Tax return, the tax assessment, or the relevant refund application.
  • 40% on the difference where the voluntary disclosure is submitted after the fourth year following the due date of submission of the Tax return, the tax assessment, or the relevant refund application.
  • Penalty for voluntary disclosure:

Before:

AED 3000 for first voluntary disclosure

AED 5000 for every other voluntary disclosure after

After Amendment:

AED 1000 for first voluntary disclosure

AED 2000for every other voluntary disclosure after

Late Payment Penalty:

  • 2% of the unpaid tax on the day following the due date of the payments
  • 4% monthly penalty is due after one month from the due date of payment. And on the same date monthly thereafter, on the unsettled Tax amount to date

The VAT penalty can go up to a maximum of 300%

Penalty for Late Payment after Voluntary Disclosure:

Now the taxpayer will be given 20 business days from the date of the submission of the voluntary disclosure. After which the same late payment penalty discussed above will apply.

Penalty for Late return Filing:

The VAT penalty for not filing VAT within the specified timeframe remains the same at AED 1000 for the first return and AED 2000 in the case of repetition within a 24-month period.

How Can We Help?

Get your Free VAT/Tax Services Meeting from Horizon Biz Consultancy

Horizon Biz Consultancy has been excelling in providing bespoke VAT consultancy services relating to VAT accounting and reporting in UAE across various sectors and industries/sectors. Apart from the support on routine VAT functions, we offer customized advisory services for tackling specific VAT challenges faced by business entities. If you are engaged in business operations in UAE, we will provide you with our value adding partnership as your advisors on VAT related matters. Our VAT experts can promptly answer your queries and guide you on implementing proper VAT governance in a controlled environment, in compliance with the regulatory requirements of the region.

Horizon Biz Consultancy is experienced in VAT/Tax consultation, business/company setup, business consultation, trading license, accounting services, CFO services, outsource payroll and many other services too. Our UAE based qualified consultants, auditors and accountants are experienced working with many small and leading businesses/companies and organization.

Would you like to know more about Horizon Biz Consultancy Services?

Speak to our experts today.

We are providing not only Dubai’s, but United Arab Emirates’ best Business Consultation Services.

We are working for 6 decades. And years of experience will never let you down.

For,

-VAT/Tax consultation

-Outsource Payroll Processing Services

-Company Formation/Registration

-Trade License Advisory Services

-Company License Renewals

-UAE Local Sponsorship Services

-Visa Services

-Trading License Advisory

-Accounting & Book-keeping

-Outsource Accounting Services

-Outsource CFO Services

-Financial Services

-Auditing Services etc.

Call/WhatsApp us Now, For a Free Consultation!

WhatsApp
Call: +971501042665
Email: info@horizonbizco.com

 

Read More:

All About VAT Payments in UAE

VAT Return Filing in UAE

UAE Tax Penalties Reduced and Discounts Granted

Economic Substance Regulations in UAE

Received Penalties For No-Submission Of ESR Report? File an Appeal

Quick Contact
Call us Whatsapp
Quick Contact