Failure to maintain or present records can result in administrative penalties by the FTA, as outlined below:

| Violation | Penalty Amount |
|————|—————-|
| Failure to maintain required records | AED 10,000 (first offence) |
| Repeat offence | AED 20,000 |
| Inaccurate or incomplete records leading to tax misreporting | Additional penalties as determined by the FTA |

Aside from financial penalties, non-compliance can lead to extended audits, reputational harm, and delays in tax clearances.