Fixing a past VAT mistake
I found that last quarter I under-declared VAT by AED 3,000. Do I need a voluntary disclosure?
The situation
From 2026, voluntary disclosures are needed only in cases the FTA specifies. Minor errors and those with no tax effect can often be corrected in the next return.
The law
- Tax Procedures Law as amended by Federal Decree-Law 17 of 2025: Voluntary disclosure scope narrowed
- Cabinet Decision 129 of 2025 (from 14 April 2026): Revised VAT and excise penalties, including 14 percent a year late payment
What it means for you
Check the FTA's current list of when a disclosure is required. If one is needed, the 2026 penalty is 1 percent a month on the tax difference until filed. Example: AED 3,000 disclosed 4 months later costs about AED 120. If the FTA has already notified an audit, an extra 15 percent applies.
What to do
- Quantify the error.
- Check the FTA rules on correction routes.
- Correct in the return or file a disclosure.
- Pay the difference.
We can do this for youVAT return filing (VAT201) on EmaraTax: output and input VAT, reverse charge, corrections and payment: AED 850