With the opening of Amazon's Middle East Station, more and more sellers are starting to dig for gold in the Middle East. We also met many sellers in the Middle East from UAE who had started FBA sales for some time, and when they registered their VAT number, they found that they missed the stipulated registration time.And may face Penalties for late registration, late filing, late paying taxes. In order to help customers avoid unnecessary losses, Amb, as the official certified VAT service provider of Amazon Middle East, has rich experience in the uae tax agency.Let's share one Real case,To help sellers understand the UAE VAT policy.

In March 2019, the client found Amb. He registered the UAE tax number at the former agency, but did not declare it. He was worried and asked us about the risks.

Looking at the certificate, we found that his tax number had come into effect on June 1, 2018. According to the UAE filing period, the client has missed three filing periods: June to July 2018 (the first filing period stipulated by the tax bureau), August to October 2018 and November to January 2019.

We immediately gasped for our clients because the UAE Tax Authority is very strict with late registration and filing penalties. If there is a late filing, there will be a fine the next day.

After the client transferred the agent to Amb, we immediately contacted the UAE Tax Bureau to ask for the list of fines that we have not received, and found that the fines are higher than the taxes (7853.12 AED). For a new seller starting soon, this is not a small amount of money, painstaking operation of the account has not tasted the taste of the first bucket of gold, because they and the tax agent are not familiar with the tax policy, and unnecessary trouble and fines.

Businesses or individuals providing taxable supplies in the UAE that exceed the minimum threshold for VAT registration should be registered in the UAE for VAT and be given a Tax Registration Number (TRN). If the taxpayer fails to reach the turnover limit after 30 days. Such VAT eligible companies will have to pay a late fee if they register within a specified time period.

Companies that fail to submit their registration applications within the prescribed time limit will be subjected to A fine of 20,000 dirhams /-.

It should be noted that from January 1, 2018, overseas companies conducting B2C sales in the UAE are subject to compulsory registration, and the annual sales QUOTA of AED 187,500 will be abolished.

If the taxpayer fails to inform the tax bureau of the cancellation within the mandatory cancellation period specified by the tax authority, the mandatory cancellation period is: Taxpayers in the UAE 20 working days when the supply of taxable products is stopped Within the.A tax payer must apply for VAT cancellation when the provision of taxable supplies has ceased or the taxable turnover for the past 12 months is less than the voluntary registration limit.

Those who fail to cancel their registration within that time will be fined 10,000 dirhams.

VAT registrants are responsible for The 28th day of the second month after the tax period To submit their VAT return. If the taxpayer fails to file on time, will First charge AED 1,000 /-As a fine. If the VAT return is subsequently delayed or not filed, dh2,000 /- will be charged.

VAT registrants should also pay to the FTA before the VAT filing deadline. If the tax due is not paid by the due date, a fee of 2% of the unpaid VAT shall be charged immediately after the due date. If VAT is not paid seven days after the refund deadline, an additional 4 per cent will be charged. In addition, if it is not paid within a month, 1% will be charged each day until the penalty reaches 300% of the unpaid tax.

A screenshot of the original uae tax law

According to the VAT law in the UAE, when goods are sold at a price, This kind of display The price must include taxes. We can take the example of a large supermarket, a supermarket or any retail store where the goods will be displayed on the shelves along with the price. According to the law, the prices shown should include VAT. Therefore, the price shown will be the maximum price that the customer will have to pay when they receive the tax invoice.

If the taxable person does not show the price including VAT, an administrative penalty of DH15,000 will be levied.

A VAT is based on the concept of a tax on each level of consumption and is structured in such a way that it will be a cost to the end customer. It is therefore important to provide appropriate documentation to customers who are paying VAT. In the UAE VAT law, a registered tax supplier is responsible to the customer To open Tax invoice（VAT invoice）Or refund according to（credit note).

According to VAT in the UAE, if the payable taxpayer fails to issue a tax invoice or refund, they will be subject to a fine of DH5,000 per tax invoice or refund.

The VAT registrant may make any omission or error in the VAT return File a voluntary disclosure form（VDF）211.There is a fixed penalty and percentage for filing a VDF 211 to correct errors or omissions in the VAT return, depending on when the VDF 211 is filed.

Potential penalties for filing a voluntary disclosure form include:

fixed penalty：3000 /-AED First use of VAT disclosure form

5000 /-AED for the second use of the VAT disclosure form.

Penalty based on percentage：

If the tax authority initiates an investigation and finds that there is no tax paid, the penalty rate is 50 percent of the unpaid tax.

30% if the taxpayer makes a voluntary disclosure after receiving notice of a tax review but before the review begins.

5% if the taxpayer makes voluntary disclosure first and notifies the tax audit.

Each VAT registrant is responsible for the correct and complete preservation of all corporate tax documents, the storage time is 5 years. They are also responsible for submitting documents or information when required by the FTA or during tax audits.

If any taxable person doing business in the UAE fails to keep the required records, or any such information is subject to a fine of 10,000 AED /- for the first time and 50,000 AED /- if repeated.

FTA allows records or documents to be kept in Arabic or English. However, if the FTA requires, Enterprises should show Arabic translation of the document. A fine of AED 20,000 /- shall be imposed if any taxable person fails to submit any records or data or any other supporting document in Arabic as required by the authority.