Since the introduction of VAT in the UAE in 2018, many businesses—especially SMEs—still struggle with full compliance. Mistakes in VAT reporting can result in fines, reputational damage, and even business disruption. Understanding the most common VAT compliance errors is key to staying penalty-free.
At Strategists Consultant, we’ve observed the following recurring issues:
- Incorrect VAT treatment of zero-rated and exempt supplies
- Failure to issue compliant tax invoices
- Late VAT returns or payments
- Incorrect calculation of input VAT
- Not maintaining adequate records for 5 years
- Over-claiming input tax
- Improper treatment of import VAT
- Non-registration when threshold is met
- Wrong application of reverse charge mechanism
- Inaccurate data entry in VAT returns
Avoiding these errors requires trained staff, reliable accounting systems, and expert oversight. Strategists Consultant helps businesses in Dubai and across the UAE establish strong VAT processes, ensuring every transaction is properly recorded and reported.
With our VAT advisory and compliance services, you can focus on growth while we ensure your business is protected from VAT-related penalties.