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After a year of implementation in the UAE, many businesses are still on rounds of understanding how to manage business tax to abide by tax laws and regulations. Tax compliance is highly important especially in the UAE where non-compliance is punished by high fines and penalties.

On its first year, the Federal Tax Authority in the UAE has given businesses a time to adjust by extending filing deadlines. After the period, the DTA is expected to be tight in implementing tax laws.

Here are the threats of improper tax management.

  1. Missing out on deductions and credits

When companies are in a rush to file their Tax Returns, tendencies are, they overlook credits and deductions which could have saved them a huge amount.

  1. Inaccurate Filing – Incorrect Tax Filing

The inaccurate filing comes when accountants do not add the right VAT amount on the invoice, they get confused among 0 rate, 5% and out of scope.

  1. Late Filings

Despite many reminders from the government, so many things go on in a company that some still miss to file their returns. Late filings incur a penalty that grows in repetition of the violation.

 

Poor accounting and VAT practices harm a company’s financial health and eventually affects the business as a while especially when penalties and fines come to play as a result of mistakes or negligence.

Consulting companies like SDAC Consulting DMCC helps businesses with their accounting and tax needs. Avail the complimentary 1-hour consultancy session with our experts. Message commercial@sdacconsulting.com to know more.