Administrative penalties under VAT in UAE
                     
Administrative penalties under 
VAT in UAE
The UAE cabinet has approved the complete list of all the 
administrative VAT Fines and vat Penalties in UAE that will be imposed 
on businesses for violations of the VAT laws.  Administrative penalties 
are additional amounts imposed on a taxable person for breaching the 
provisions of the VAT Law. Below are some of the actions which invite 
administrative penalties under VAT in UAE.
 Penalty for failing to display 
the prices inclusive of VAT
Every person eligible for tax should display the price of goods or services taxable, except in the following cases:
• The supply is for exports
• The customer is a registrant
• Import of goods or services.
Failure by the taxable person to notify the FTA charge of Tax (based on margin)
A taxable person should calculate tax on the profit margin on the supply of second-hand goods, antique stamps, 
coins, etc. The profit margin is the difference between the purchase price and the selling price of the goods.
Failure to comply with the conditions and procedures related to moving and keeping goods in a designated zone.
A Designated zone is considered outside the state of UAE for the purpose of VAT. As a result, any transfer of goods 
between designated zones, results in zero VAT levied.
Failure to register for VAT in UAE
If a VAT eligible business in the UAE fails to register within the specified timeline, it will have to pay a penalty.
A penalty of Dh20,000 shall be applicable to those registrants who fail to submit a registration application within 
the specified timeframe.
Taxable person’s right to object 
penalties
Any taxable person has the right to object when any of the above-
mentioned penalties are imposed by authorities. A request can be 
submitted to reconsider the imposition of penalty. A taxable person has 
to give a valid reason for reconsideration.
Registrant failing to settle any penalties within the specified timeframe 
can seek the guidance of a VAT expert for further remedy.
VAT registration in UAE
You may also consult a VAT expert to avoid any kind of penalties 
imposed on your business and also can get better insights on complying 
with the rules and regulation according to VAT law. Our team has 
assisted business from many industries effectively manage their tax-
related matters and helped avoid VAT penalties. If you are also seeking 
to help hand for dealing with the VAT-related issues, you can contact us.