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VAT Administrative Penalties

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About Us

​Alliance CA specializes in navigating the complex landscape of VAT compliance and the avoidance of administrative penalties arising from infractions of the VAT Law in the UAE. Understanding the intricacies of VAT regulations and the serious financial implications of non-compliance, we offer expert guidance and strategic advice to ensure businesses adhere strictly to the VAT Law, thus mitigating the risk of costly penalties.

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The right of a taxpayer to contest the application of penalties

Any person who is subject to taxation has the legal right to raise an objection to any of the penalties that have been outlined by the relevant authorities. You have the option of submitting a request to have the imposed penalty re-evaluated. When requesting a reassessment, a taxpayer is required to provide a valid rationale for their request.

Registrants who fail to clear any penalties within the allotted window can seek the advice and assistance of a VAT professional as a supplementary remedy.

When does the FTA have the authority to lessen or eliminate administrative penalties?

The Federal Tax Authority (FTA) holds the authority to reduce or waive administrative penalties for individuals who breach VAT Law, under specific conditions. These conditions include possessing a valid explanation for the breach, providing proof of both the explanation and the breach leading to penalties, and formally requesting a concession or waiver within ten working days after the explanation's validity period. Additionally, the individual must not have received any administrative fines or sanctions in the two years preceding the request and must demonstrate that the infringement has been rectified. This framework allows for leniency in cases where the breach is justified and corrected, ensuring fair treatment under the VAT Law.

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Why Choose

Alliance CA

If you want to prevent having any kind of penalties placed on your company, you can consult a VAT specialist working under Alliance CA. This will allow you to obtain greater insights on how to conform to the laws and regulations that are outlined in the VAT law. Businesses in a wide variety of sectors have benefited from our team's assistance in properly managing their tax-related concerns and avoiding VAT administrative penalties. You can get in touch with us if you want assistance in resolving issues that are related to VAT.

  • What are the audit requirements in Dubai, UAE?
    UAE Commercial Companies LAW / Federal Law No. 2 of 2015 requires all organizations operating within the United Arab Emirates to hire UAE-approved chartered accounting firms that are registered with and have been issued licenses from the Ministry of Economy for auditing their accounts. Furthermore, professional Auditing companies in Dubai are essential for organizations to ensure that their business complies with the laws, rules, and regulations, and the accounting standards applicable in the UAE.
  • Is Auditing Mandatory in Dubai?
    Yes, following the UAE Commercial Companies LAW / Federal Law No. 2 of 2015 all organizations operating within the United Arab Emirates are required to hire UAE-approved chartered accounting firms that are registered with and have been issued licenses from the Ministry of Economy for auditing their accounts.
  • What are the risks involved with auditing companies in the UAE?
    Auditing firms in the UAE have to be careful of the risks and probabilities of Substantial Misrepresentation while conducting audits.
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