You can run but you can’t hide: UAE’s tax ax is coming
Today, almost 75,000 UAE companies are facing potential tax fines, because of the delay in registering their firms in the VAT system.
Recently, the UAE Federal Tax Authority (FTA) stated it will go on a road show to inform non-registered companies about the steps needed to do so.
These efforts are to ensure that all UAE companies are registered by April 30, as the last deadline!
Thousands still not registered
FTA has already extended the registration deadline from January until the end of April, giving the UAE companies time to be ready to register.
According to FTA director general Khalid Al Bustani, about 100,000 companies in the UAE did not register yet, compared to 275,000 who did.
“We will not tolerate tax evaders, or anyone violating rules and misusing the system. It is public knowledge that the UAE has a VAT, and all companies have an obligation to pay it,” said Al Bustani, as reported by The National.
Starting January 1st, the UAE introduced a 5% tax on most goods and services.
According to the FTA, the administrative penalty for late registration ranges between $1000 and $4000.
Failure to submit an application will result in a fine of $272 for first-time offenders and $545 for repeat offenses that take place within a two-year period.
The UAE’s FTA launched roadshows to help businesses understand value-added tax (VAT) and urge them to register and benefit from the exemption given by the authority until April 30.
In a statement, the FTA explained that as part of these roadshows FTA experts and analysts will hold seminars and workshops, to better explain the taxing system and help people register.