Alex France
Jun 21, 2023 01:20 PM

What happens if I miss paying VAT?

What happens if I miss paying VAT?

All Replies (8)
11 months ago

If a business fails to pay VAT or file a VAT return within the timeframe specified by FTA , the business will be subject to penalty

11 months ago

If you miss paying VAT in UAE, you will be subject to penalties

11 months ago

  1. It will result in following penalties:
  1. b) 4% of the amount of tax which is still unpaid is due on the seventh day following the deadline for payment. 
a) 2% of the unpaid tax is due immediately once the payment is late. 
c) 1% daily penalty will be charged on any amount that is still unpaid one calendar month after the deadline for payment, up to a maximum of 300%. 

11 months ago

Missing VAT payments may lead to penalties .

Jerin P Thomas
11 months ago

If you miss paying VAT, there can be consequences depending on the  policies of 


Bryce Dsouza
11 months ago

If you miss paying VAT in UAE, you will be subject to penalties. According to the UAE government's official portal, if you fail to pay within 20 days, a 2% penalty will be imposed after the 20-day period lapses, followed by a further 4% monthly penalty payable at monthly intervals one month from the due date. The cap on the penalties remains at 300%¹. 

In addition, if any VAT registrant missed the deadline for VAT return submission and payment due for the same, The Federal Tax Authority (FTA) will impose separate penalties for late filing of VAT return and late payment of VAT. 

Jayadev Menon
11 months ago

Missing the payment of VAT will lead to several consequences such as penalties , interest levies , 

Jhon Peter
1 year ago

If you miss paying VAT (Value Added Tax), there can be consequences depending on the regulations and policies of your country. Here are some potential outcomes:

Late payment penalties: Most tax authorities impose penalties for late payment of VAT. These penalties typically involve a percentage of the unpaid amount, which can increase the longer the payment is overdue.

Interest charges: In addition to late payment penalties, you may also be subject to interest charges on the outstanding VAT amount. The interest rate and calculation method vary by jurisdiction.

Legal actions: If you repeatedly fail to pay VAT or intentionally avoid paying, tax authorities may take legal actions against you. This can include issuing fines, seizing assets, or pursuing legal proceedings to recover the unpaid tax.

Loss of privileges: Non-compliance with VAT payment obligations can lead to the loss of certain privileges or benefits. For example, you might be ineligible for government contracts, face restrictions on conducting business activities, or be denied certain licenses or permits.

Reputational damage: Failing to pay VAT can harm your reputation, particularly if it becomes public knowledge. This can affect your relationships with suppliers, customers, and business partners.

To avoid these consequences, it is crucial to stay aware of your VAT obligations, keep accurate records, and submit your payments on time. If you encounter difficulties, it's advisable to reach out to the tax authorities or seek professional advice to rectify the situation promptly.

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