VAT related Penalities & Fines

Que: Failure by the taxable person/business to display prices inclusive of tax.

ANS: AED 15,000

Que: Failure by the taxable person/business to notify the Authority of applying tax based on the margin.

Ans: AED 2,500

Que: Failure to comply with conditions and procedures related to the transfer of goods in designated zones.

Ans: The penalty will be the higher of AED 50,000 or 50% of the tax, if any, unpaid on the goods as the result of the violation.

Que: Failure by the taxable person/business to issue a tax invoice or alternative document when making any supply.

Ans: AED 5,000 for each missing tax invoice or alternative document.

Que: Failure by the taxable person/business to issue a tax credit note or alternative document.
Ans: AED5,000 for each missing tax credit note or alternative document.

Que: Failure by the taxable person to comply with the conditions and procedures regarding the issuance of electronic tax invoices and electronic tax credit notes.

Ans: AED 5,000 for each incorrect document.