Didn't submit tax return on time?

Penalty for not submitting a tax return on time.

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After the end of the reporting quarter, the FTA gives businesses a minimum of 28 days to prepare and file their VAT return. If 28th of the month falls on either Friday or Saturday, the deadline moves to the next working day. Any VAT returns not filed by the given deadline should be submitted as soon as possible afterwards. FTA will allow you to file VAT returns even if you passed the deadline. In fact, you can't file your VAT randomly. It should filed sequentially one after the other. So it forces you to file returns sequentially, even if you have missed a deadline.

The FTA impose separate penalties for failing to file a return and failing to make payment by the given deadline. There is an automatic penalty for missing a filing deadline which is AED 1,000 in the first instance and then AED 2,000 for subsequent missed deadlines within 24 months. If you fail to settle the tax due by the deadline you will be charged 2 per cent of the unpaid tax, which is charged immediately after the due date. This rises to 4 per cent of the unpaid tax if you have not paid up within seven days of the deadline. If you have still not paid a month after the deadline, you are charged at a rate of 1 per cent each day until the penalty reaches 300 per cent of the tax due. Note that if you make a payment but fail to file the corresponding return, the FTA will not recognise the payment until the return is filed.