UAE: FTA announces Grace period of One Year To Re-determine the VAT penalties

By BMS AUDITING

UAE: FTA announces Grace period of One Year To Re-determine the VAT penalties

UAE: FTA announces Grace period of One Year To Re-determine the VAT penalties

FTA calls tax registrants to benefit from the extension of the grace period for re-determination of administrative penalties on violating tax law until December 2022

 

The Federal Tax Authority (FTA) restated that the Cabinet Decision has given an opportunity to the business sectors to take advantage of easing the administrative penalties. The decision was to maintain the wise leadership orders to minimize the burdens on business sectors and enhance their potential for optimum contribution to economic growth. FTA has the vision to provide a legislative atmosphere to enhance the level of tax compliance. 

 

FTA also disclosed that the re-determination of administrative penalties levied for violating tax laws by the registrants who had failed to fulfil the conditions during December 2021, would now be able to fulfil by December this year. The FTA had called the registrants to pay the full tax, along with 30% of the unpaid administrative penalties imposed during June 2021. 

 

The Cabinet Decision added that the FTA would determine the process to implement the provisions for the re-determination of the penalties. FTA affirmed that the penalties imposed would be reevaluated in a span of 30 days from the dates mentioned in the Cabinet Decision, ensuring that all the conditions are met. 

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FTA reviewed and audited the records of the tax registrants who accomplished the requirements mentioned in the law to enjoy the benefits of re-evaluation of the penalties scheme under Cabinet Decision 40 of 2017 during June 2021 to equalize the 30% of the unpaid penalties.

 

FTA also pointed out that the review of the records of a few tax registrants retained to identify if there were more people eligible to get the advantage from the re-evaluation.

 

BMS Auditing performs regular VAT audits to ensure that the company adheres to the VAT laws of the UAE. Our VAT Audit helps you understand if your business or the company is ready to follow all the conditions and provisions of VAT. Besides, protecting your business from legal issues and consequences, BMS provides great benefits of being compliant with the regulations of VAT. 

 

These are the key benefits provided by BMS:

  • Authenticating the financial transaction 
  • Assuring the legitimacy of the company to the government 
  • Augmenting the goodwill of the company among the public as well as the competitors
  • Identifying the fallouts in VAT compliance



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