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Frequently Asked Questions on VAT

Last updated on 17 August, 2018


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What happens if I submit incorrect tax returns?

Two penalties are applied:

  • Fixed penalty of:

    • AED 3,000 for the first time

    • AED 5,000 for each repeat violation

  • Percentage-based penalty as follows:

    • 50% of the amount unpaid in error if you do not make a voluntary disclosure (or if you make the voluntary disclosure after you’ve been notified of the tax audit and the authority has started the tax audit process, or after being asked for information relating to the tax audit, whichever takes place first).

    • 30% of the amount unpaid in error if you make a voluntary disclosure after being notified of the tax audit but before the authority starts the tax audit.

    • 5% of the amount unpaid in error if you make a voluntary disclosure before being notified of the tax audit by the authority.

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