What is the penalty for paying VAT late?

5. 40% on the difference, where the Voluntary Disclosure is submitted after the fourth year from the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application. 12 The failure of the Person/Taxpayer to voluntarily disclose an error in the Tax Return, Tax Assessment, or refund application pursuant to Article 10 (1) and 10(2) of the Tax Procedures Law before being notified by the Authority that it will be subject to a Tax Audit. Without prejudice to the potential consequences of the penalty mentioned in Clause 10 of this Table, the person will be subject to: 1. A penalty of 50% on the amount of error. 2. A penalty of 4% for every month or part of the month, of the following: a. The unpaid Tax to the Authority, from the date the payment is due for the relevant Tax Period until the date of receipt of the Tax Assessment. b. The Tax that was not returned to the Authority due to ineligible refund, from the date of Tax refund until the date of receipt of the Tax Assessment. 13 The failure of the Person conducting 20,000 Business to facilitate the work of the Tax Auditor in violation of the provisions of Article 21 of the Tax Procedures Law. 14 The failure of the Registrant to 1. The Registrant shall be obliged to pay calculate Tax on behalf of another the penalty applicable to late Person where the Registrant settlement of Payable Tax up to a Taxable Person is obliged to do so maximum of 300%, pursuant to the under the Tax Law. following: a. 2% of the unpaid Tax is due on the day following the due date of payment, where the settlement of Payable Tax is late. Cabinet Decision No. 49 of 2021 - Issue Date: 28 April 2021 - Unofficial Translation 5

7 The failure of the Legal 1,000 for the first time. Representative for the Taxable 2,000 in case of repetition within 24 Person to file a Tax Return within the months. specified timeframe, in which case the Penalties will be due from the Legal Representative’s own funds. 8 The failure of the Registrant to 1,000 for the first time. submit the Tax Return within the 2,000 in case of repetition within 24 timeframe specified in the Tax Law. months. 9 The failure of the Taxable Person to 1. The Taxable Person shall be obliged to settle the Payable Tax stated in the pay the penalty applicable to late submitted Tax Return or Voluntary payment of Payable Tax up to a Disclosure, or the Tax Assessment maximum of 300%, pursuant to the he was notified of, within the following: timeframe specified in the Tax Law. a. 2% of the unpaid Tax shall be due on the day following the due date of payment, where the settlement of Payable Tax is late. b. 4% monthly penalty is due after one month from the due date of payment, and on the same date monthly thereafter, on the unsettled Tax amount to date. 2. For the purposes of this penalty, the due date of payment in the case of the Voluntary Disclosure and Tax Assessment, shall be as follows: a. 20 business days from the date of submission, in the case of a Voluntary Disclosure. b. 20 business days from the date of receipt, in the case of a Tax Assessment. 10 The submittal of an incorrect Tax 1. Fixed penalty shall be applied: Return by the Registrant. 1,000 for the first time. 2,000 in case of repetition. 2. As an exception to Clause 1 of this penalty, if the incorrect Tax Return results in a Tax difference less than the Cabinet Decision No. 49 of 2021 - Issue Date: 28 April 2021 - Unofficial Translation 3