VAT affairs and Transaction

Calculating your VAT returns every period (monthly, quarterly) can be a hassle given all the other time end operations going on in your company. Our team of professionals will file your VAT returns with utmost care and accuracy, keeping in consideration all the applicable VAT Laws & Regulations and ensuring that there is no over or undercharge.

VAT Return Filling

Get 100% VAT Return

Having to file for your Quarterly VAT tax at the end of every reporting period will only pile up more work for your employees – making it difficult for them to meet the reporting deadlines. Help them out by outsourcing your VAT return filing procedure to CMC – we have collaborated with the leading tax agency UAE. We will calculate your Quarterly taxes with the utmost accuracy because we realize how costly tax computing errors can prove to be.

As per Cabinet Resolution No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE, some of the Tax Penalties related to wrong VAT Reporting are:

Violations That's Causing Penalties

  • The failure of the Registrant to submit the Tax Return within the timeframe specified in the Tax Law.( Resulted Fine of )
AED 1,000 for the first time.
AED 2,000 in case of repetition within (24) months.
  • A Person not accounting for any tax that may be due on import of goods as required under the Tax Law.( Resulted Fine of )
50% of unpaid or undeclared tax.
  • The failure of the Taxable Person to voluntarily disclose errors in the Tax Return, Tax Assessment or Refund Application pursuant to Article 10 (1) and (2) of this the Tax Procedures Law before being notified that he will be subject to a Tax Audit.
Two penalties are applied:
1. Fixed penalty of:
AED 3,000 for the first time.
AED 5,000 in case of repetition
2. (50%) of the amount unpaid to the Authority due to the error resulting in a tax benefit for the Person/Taxpayer.
  • The failure of the Taxable Person to settle the Payable Tax stated in the submitted Tax Return or Tax Assessment he was notified of, within the timeframe specified in the Tax Law.
The Taxable Person shall be obligated to pay a late payment penalty consisting of:
(2%) of the unpaid tax is due immediately once the payment of Payable Tax is late;
(4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid.
1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of (300%).
  • The submittal of an incorrect Tax Return by the Registrant.
Two penalties are applied:
1. Fixed penalty of:
AED 3,000 for the first time.
AED 5,000 in case of repetition
2. Percentage based penalty shall be applied on the amount unpaid to the Authority due to the error and resulting in a tax benefit as follows:
(50%) if the Registrant does not make a voluntary disclosure or he made the voluntary disclosure after being notified of the tax audit and the Authority has started the tax audit process, or after being asked for information relating to the tax audit, whichever takes place first.
(30%) if the Registrant makes the voluntary disclosure after being notified of the tax audit and before the Authority starts the tax audit.
(5%) if the Registrant makes a voluntary disclosure before being notified of the tax audit by the Authority.
  • The Voluntary Disclosure by the Person/Taxpayer of errors in the Tax Return, Tax Assessment or Refund Application pursuant to Article 10 (1) and (2) of the Tax Procedures Law.

Two penalties are applied:
1. Fixed penalty of:
AED 3,000 for the first time.
AED 5,000 in case of repetition
2. Percentage based penalty shall be applied on the amount unpaid to the Authority due to the error and resulting in a tax benefit as follows:
(50%) if the Person/Taxpayer makes a voluntary disclosure after being notified of the tax audit and the Authority starting the tax audit or after being asked for information relating to the tax audit, whichever takes place first.
(30%) if the Person/Taxpayer makes the voluntary disclosure after being notified of the tax audit but before the start of the tax audit.
(5%) if the Person/Taxpayer makes voluntary disclosure before being notified of the tax audit by the Authority.