TaxSavvyAE

Penalty for wrong registration data

Our trade name and address changed after VAT registration. Do we need to tell the FTA?

The situation

Yes. Registrants must update their tax record. Under the 2026 penalty rules, failing to update is AED 1,000 for a first violation and AED 5,000 if repeated within 24 months.

The law

  • 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

Make the amendment as soon as the licence is updated. Example: a company changed its name on the licence in June and updated EmaraTax in December. That can trigger the AED 1,000 penalty. Invoices with the old name also confuse customers' input claims.

What to do

  1. Update the trade licence first.
  2. Open the VAT registration amendment on EmaraTax.
  3. Upload the new licence.
  4. Change invoice templates.

We can do this for youVAT registration on EmaraTax: threshold test, voluntary registration, non-residents and tax groups: AED 950

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