How to Calculate UAE VAT Penalty?
Acute Consultants have developed a Microsoft Excel template to calculate UAE VAT Administrative penalties as per Cabinet Resolution No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.
This is a very handy template, you just have to enter dates and VAT liability amount, rest is done automatically and you are presented a report.
Below is the screenshot of front page.
Federal Tax Authority (FTA) of UAE has over ruled Cabinet Decision No. 40 of 2017 and has issued Cabinet Decision no.49 of 2021 on Redetermination of Administrative Penalties. Many of Administrative penalties which were there in cabinet decision no. 40 of 2017 has now been reduced or split over longer period in Cabinet Decision no. 49 of 2021 issued on 28th of April 2021.
The effective date of this new Cabinet Decision no. 49 is 28th of June 2021. So penalties before 28th June 2021 need to be calculated as per old rules and hence above available calculator is still valid for penalties calculation till 28-06-2021.
You may download our new calculator here which is developed as per new rules, The Cabinet Decision 49 of 2021.