Decision 49 of 2021 was issued by the UAE Federal Government to reduce Penalties leviable for VAT and Excise Non-Compliances by the Federal Tax Authority amending the earlier Cabinet Decision 40 of 2017.
The penalties relating to late payments of tax were reduced as below:-
Fixed penalties for the submission of Voluntary Disclosure (VD) for incorrect VAT and Excise Returns is brought down to AED 1,000 for First VD and AED 2,000 for further VD's. There would be subsequent reductions or full waivers that would be permitted in specific cases.
This decision of reduction of penalties leviable for VAT and Excise Non-Compliances proved to be a huge relief for all the businesses in UAE who have got unpaid VAT or Excise Tax Penalties levied by Federal Tax Authority under the old Cabinet Decision. This was made in order to support and supplement the businesses across UAE in these challenging times so that the businesses with unpaid VAT or Excise Tax penalties could take advantage of the special scheme.
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