VAT Fines Discount in UAE

FTA urges tax registrants to take advantage of VAT fines discount in UAE. There are some conditions to get VAT penalty waiver UAE by FTA. Many businesses in UAE have pending tax fines and penalties from Federal Tax Authority (FTA) related to excise tax and VAT. This is good news for them as FTA has introduced discounts on Excise tax and VAT fines and penalties.

The FTA stressed the three conditions that must be met in order for tax registrants to benefit from the re-determination of unpaid administrative penalties imposed prior to June 28, 2021 to equal 30 per cent of the total unpaid penalties

The Federal Tax Authority (FTA) has called on tax registrants in the UAE to benefit from the penalty redetermination scheme introduced by Cabinet Decision No. 49 of 2021 on amending some provisions of Cabinet decision No. 40 of 2017 on the administrative penalties for violation of tax laws in the UAE, which will be effective from June 28, 2021.

ALERT: FTA REDUCES VAT FINES AND PENALTIES IN UAE

In a press release on Saturday, the FTA stressed the three conditions that must be met in order for tax registrants to benefit from the re-determination of unpaid administrative penalties imposed prior to 28 June 2021, to equal 30 per cent of the total unpaid penalties.

Conditions to get excise tax and VAT fines discount in UAE

• The first condition is that the administrative penalty must have been imposed under Cabinet decision No. 40 of 2017 before June 28, 2021, and some or all of it remains outstanding.
• The second condition is that the tax registrant settles all payable tax by December 31, 2021, so that there is no outstanding tax payable by the end of 2021.
• Finally, the third condition requires tax registrants to settle 30 per cent of any administrative penalties payable and unsettled by June 28, 2021, on or before December 31, 2021.

Penalty Redetermination

In order to ensure a smooth, flexible, and accurate implementation of the decision and to provide additional facilities for registrants to benefit from the decision, the authority will be launching a dashboard for penalty redetermination, which can be accessed from the main dashboard of the registrant on the FTA’s e-services portal, which enables registrants to check various data.

VAT penalty waiver UAE by FTA

Xact Auditing will assist you in getting excise tax and VAT penalty waiver UAE by FTA. Our tax specialists will assist you in getting the reduction in all types of VAT fines and penalties by providing professional tax consultancy. Contact us now and get VAT fines discount in UAE.