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Frequently Asked Questions on VAT

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Is there any penalty for submitting a Voluntary Disclosure for excise tax returns?

Just as there are penalties for Voluntary Disclosures for VAT returns, you may also have to pay penalties for Voluntary Disclosures for excise tax returns.

These penalties vary depending on your specific case. 

There are two types of penalties when you submit a Voluntary Disclosure:

  • Fixed Penalty: The first time you file a Voluntary Disclosure, or Form 211, without any notification from the FTA, you will have to pay a fixed penalty of AED 3,000. From then on, every subsequent submission of Form 211 will require you to pay a penalty of AED 5,000.

  • Percentage-Based Penalty: This penalty is based on the amount that was not originally reported. For example, if you disclosed a tax liability of AED 100,000, but later realise you should have disclosed a tax liability of AED 150,000, then the percentage-based penalty will be levied on the difference in these amounts: AED 50,000. 

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