Value-added tax (VAT) was introduced in the United Arab Emirates (UAE) in 2018, and since then, businesses across the country have had to navigate the complexities of the VAT regulations. While most businesses strive to comply with the law, mistakes can happen, and these can lead to costly penalties and legal disputes with the Federal Tax Authority (FTA). In this blog, we’ll explore some common VAT mistakes that businesses make in the UAE, drawing lessons from recent legal cases.
Mistake #1: Failing to register for VAT
Mistake #2: Incorrectly applying zero rating or out of scope
Mistake #3: Failing to maintain proper records
Mistake #4: Failing to charge the correct rate of VAT
Mistake #5: Failing to account for VAT on the import of goods
Mistake #6: Failing to submit correct VAT return
Mistake #7: Failing to adjust input tax on bad debts
Compliance with the VAT law is essential for businesses operating in the UAE, and avoiding common VAT mistakes is critical to achieving compliance. By learning.
Source: LinkedIn
