Page 82 - Focus Group

and then 1% per day thereafter up to 3 times Reconsideration form have not been encouraging.
the unpaid amount The form is entirely online and in Arabic and is
not linked to VAT logins of registered Tax Persons. khaleejtimes.com
• Incorrect Returns filing – AED 3,000/AED 5,000 Hence, in many cases, there is simply no response,
plus % based penalties
or the response could be after many months.
• Incorrect Tax Invoices – AED 5,000 per invoice Similarly filing of appeals in the TDRC are not very
common. Also, when filing an appeal, it is required
• Failure to display prices inclusive of VAT – AED to first pay all dues.
15,000
SUMMARY
• Not Amending VAT Details in time – AED 5,000 or
AED 15,000 on repetition Given that Taxable Persons, especially MSMEs are
faced with a scenario of big penalties with little
• Failure to maintain business records – AED recourse for reduction, the old proverb ‘better safe
10,000/50,000 as the case may be than sorry’ is perhaps the best course of action. In

DEREGISTRATION other words, they need to ensure whether through
professional advice or otherwise, that they comply
The final stage of the life cycle is Deregistration. with the Law in all respects and hence are not
Here too, in the event of not deregistering within subject to penalties in the first place.
the time limit of 20 business days in the cases
mentioned under the Law, leads to penalties of AED
10,000.

IS THERE A RECOURSE FOR THE PENALTIES?

The VAT Law provides some recourse for the
reduction of the penalties by way of filing the
Reconsideration Form or going a step further and
filing an appeal with the Tax Disputes Redressal
Commission. However, results from filing of the CA Milan Shah

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82 TAX JOURNAL 2020 The Institute of Chartered Accountants of India (Dubai) Chapter NPIO THE NATION the nation’s history and its glorious future.