Businesses Urged to Register for VAT or Face Hefty Fines

The Federal Tax Authority (FTA) has issued a stern reminder to businesses, urging them to initiate registration for value-added tax (VAT) within 30 days of reaching the minimum registration threshold. This call comes as the FTA emphasizes the importance of compliance with VAT regulations and highlights the ease of the registration process, which can be completed in as little as 45 minutes through the user-friendly “Emirates Tax” platform.

التسجيل في «القيمة المضافة» ملزم خلال 30 يوماً من بلوغ «الحد الأدنى»

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According to the FTA’s disclosure, businesses must register for VAT if their taxable supplies and imports exceed the mandatory registration limit of 375,000 dirhams. Failure to register within the stipulated timeframe may result in a hefty late registration fine of 10,000 dirhams.

Tax agent Mohamed Helmy, speaking to Emirates Al-Youm, emphasized the significance of timely registration to avoid penalties. He outlined the necessary documentation, including a disclosure form covering income statements from 2017 to the present, as well as bank account statements. Helmy also emphasized that businesses should be prepared for future tax audits, where the FTA has the authority to examine all financial statements and accounting books.

Highlighting the smooth and streamlined application process, Helmy underscored the accumulated experience in the UAE’s tax system since the introduction of VAT in early 2018. He emphasized that compliance with VAT regulations is crucial for both newly established and long-standing businesses, reiterating that once revenues reach 375,000 dirhams, registration must be completed within 30 days, taking into account holidays as well.

With this news, businesses across the UAE are urged to take immediate action and ensure their VAT registration is up to date, minimizing the risk of penalties and demonstrating their commitment to adhering to tax regulations.

Source: Twitter @emeratalyoum