Avoid VAT Penalties in the UAE with Expert Help from YUGA Accounting
Ensure your business remains VAT compliant in the UAE with timely registration, accurate return filing, and complete FTA compliance—powered by expert support from YUGA Accounting.
Understanding VAT in the UAE
The introduction of VAT in 2018 marked a major step in diversifying the UAE’s economy. Since then, the Federal Tax Authority (FTA) has issued various updates to guide businesses. All eligible businesses must register for VAT, file returns on time, and make proper payments in accordance with UAE law.
Do You Know the VAT Penalties in the UAE?
Failing to comply with FTA guidelines can result in significant fines. Partnering with a registered tax agent like YUGA Accounting helps you stay compliant and avoid unnecessary penalties.
Let’s look at key VAT penalties and how YUGA Accounting can help you prevent them.
Key VAT Penalties & How to Avoid Them
1. Timely VAT Registration
If your taxable turnover exceeds AED 375,000, you must register for VAT. Delayed registration can lead to a penalty of AED 10,000. YUGA Accounting tracks your revenue and handles the VAT registration process efficiently.
2. Maintain Accurate Records
Businesses must retain financial records for at least 5 years. These documents are essential for VAT returns and input tax claims. We ensure all your records are well-maintained and FTA-compliant.
3. File VAT Returns on Time
Returns must be filed by the 28th of the month following the end of your tax period. Late submissions result in AED 1,000 fine (first time) and AED 2,000 for repeats. YUGA Accounting ensures your returns are filed correctly and on time.
4. Timely Tax Invoicing
Invoices must be issued within 14 days from the supply date. Failing to do so may result in a penalty of AED 2,500 per invoice. We help you implement invoicing systems that comply with FTA rules.
5. Stay Updated on UAE VAT Law
FTA regulations change regularly. Staying informed is critical for compliance. YUGA Accounting keeps you updated and adjusts your VAT processes accordingly.
6. Train Your Staff on VAT Rules
Your team must understand VAT basics—such as zero-rated items, exempt supplies, and tax calculations. We offer practical VAT training and ongoing support for your team.
Common VAT Mistakes to Avoid
Late Registration: Missing the FTA deadline leads to instant fines.
Incorrect Data: Errors or omissions in returns can trigger penalties.
Wrong VAT Rates: Misclassifying goods or services can lead to incorrect tax application.
Underreporting: Reducing VAT liability intentionally is considered tax evasion.
Invalid Invoices: Missing details or incorrect formats can attract fines.
Why Choose YUGA Accounting?
YUGA Accounting is a trusted FTA-certified tax and accounting consultancy in the UAE. We help businesses simplify their tax processes, ensure full VAT compliance, and avoid penalties through expert guidance.
With YUGA Accounting, you receive proactive support, the latest tax insights, and complete peace of mind.
Our core VAT services include:
VAT Registration
VAT Return Filing
VAT Deregistration
VAT Audit Support
VAT Health Check
Ongoing VAT Compliance & Advisory
Stay Compliant with Confidence
Reach out to YUGA Accounting today for expert VAT support in the UAE. Let us take care of your VAT obligations while you focus on growing your business.
Call YUGA Accounting now for hassle-free, professional VAT compliance!
FOR MORE INFORMATION, CONTACT US :
Phone : +971 52 1952 532 / +971 4 240 1110
Mail-Id : info@yugaaccounting.com
Website : www.yugaaccounting.com