1. The taxable person does not show the tax-included price
Except for the following circumstances, each taxable person in the UAE shall display the price of taxable goods or services, including value added tax.
One kind. Supply for export
b. The customer is the registrant
C. Import of goods or services
If the taxable person fails to display the price of goods or services (including tax), it will result in an administrative fine of Dh15,000.
2. The taxable person fails to notify the FTA based on the margin
Taxpayers should calculate the tax based on the profit margin of supply of second-hand goods, antiques, stamps, coins and other collectibles. The profit margin here is the difference between the purchase price and the sale price of the product.
Failure to notify the FTA of the tax on the margin requirement will result in an administrative VAT fine of Dh2,500.
3. Failure to comply with conditions and procedures related to storing goods in a designated area or transferring them to another designated area
The designated area is an area without value added tax, and for the purpose of value added tax, the area is considered to be outside the UAE. Therefore, no value-added tax will be levied on any transfer of goods between designated areas. To learn more about the conditions and procedures for storing goods in a designated area or transferring them to another designated area, please read our information on VAT in UAE Free Zones.
If the taxable person fails to comply with the conditions and procedures related to the designated area, an administrative fine of Dh50,000 or 50% of the tax levied for the violation will be applied, whichever is higher.
4. The taxpayer did not issue tax invoices or alternative documents when replenishing
Tax invoices are basic documents that must be issued by the registrant when providing taxable goods or services. To learn more about tax invoices under UAE VAT, please read our article on tax invoices.
Taxable persons who fail to issue tax invoices or substitute documents for taxable supplies will be subject to an administrative fine of Dh5,000 for each unissued tax invoice or substitute document.
5. The taxable person has not issued a tax credit notice or alternative documents
A tax credit voucher is a written or electronic document that records any amendments to the reduction or cancellation of taxable goods.
Taxable persons who fail to issue tax credits or alternative documents (if applicable) will be subject to an administrative fine of Dh5,000 for each unissued tax credit or alternative documents.
6. Taxpayers fail to comply with the conditions and procedures for issuing electronic tax invoices and electronic tax credits
Taxpayers can issue tax invoices or tax credit notices electronically, provided that:
One kind. According to record keeping requirements, taxable persons must be able to safely store copies of electronic tax invoices
b. Ensure the authenticity and integrity of the content of the electronic tax invoice or tax credit
If the taxable person does not meet the conditions for issuing electronic tax invoices or tax credit notes, it will charge an administrative fine of Dh5,000 for each electronic tax invoice or tax credit note that does not meet the conditions.
Therefore, when violating certain provisions of the Value-Added Tax Law, taxpayers should pay attention to high administrative penalties and ensure that they are paid attention to and avoided.
1. Administrative penalties imposed by the UAE Free Trade Zone under the Tax Procedure Law