COVID Impact: UAE reduces penalties on VAT and Excise Tax

UAE reduces penalties on VAT and Excise Tax!!!

COVID-19 Impact: UAE reduces penalties on VAT and Excise Tax. The UAE has reduced old penalties on VAT and excise tax to help businesses and individuals to get through the impact of the Covid-19 pandemic. According to newly-released Cabinet Decision No. 49 of 2021, taxpayers who currently have penalties pending can see those reduced to 30 percent, provided they settle them before December 31, 2021.

ALERT: NEW VAT FINES AND PENALTIES IN UAE ANNOUNCED

Also, late payment penalties will be reduced to 4 percent per month, a substantial reduction from one percent per day while an overall cap stays at 300 percent.

The new provisions will be applicable 60 days as of April 28, 2021.

With the reduction in penalties of VAT and excise tax, it is an amazing opportunity for individuals and companies to start fresh. This is the best relief provided by the government to the pandemic-hit businesses in the UAE.

Several businesses in the UAE succumbed to administrative penalties on account of delay in submission of the due tax. The new regime of administrative penalties is at par with global standards. The most relieving change is a maximum penalty of four percent of unpaid tax per month compared to one percent of the unpaid tax for each day of delay as per the old provisions.

VAT fine and penalty waiver

If your company has been charged with any of the VAT fines, Xact Auditing tax experts will assist you in reducing or completely waive off those fines and penalties. 

UAE reduces penalties on VAT and Excise Tax, We will help you waive off VAT fines. Xact Auditing is a registered tax consultant and we will take care of all the concerns related to VAT and provide you advice in light of the latest changes in VAT rules and regulations. Let Xact Auditing help you while dealing with your tax matters, contact us.