Under the old penalty table, disclosing an error was cheapest in the first year and the percentage stepped up once a year. That encouraged people to sit on errors until the end of a band. The new rule removes the bands. The penalty now accrues month by month from the day the tax was originally due, so every month of delay has a price. If you have found something, the cheapest day to deal with it is today.
Which route, in detail
| The error | What you do | Deadline |
|---|---|---|
| Tax difference of AED 10,000 or less | Correct it in the next return, through the adjustment fields | The next return not yet due |
| Tax difference above AED 10,000 | Voluntary disclosure for the period the error happened in | 20 business days from becoming aware |
| No effect on the tax due (wrong emirate, wrong box) | Correct it in the next return, unless the FTA specifies a disclosure | The next return |
| A refund claim overstated by more than AED 10,000 | Voluntary disclosure | 20 business days from becoming aware |
| You found it before the return's payment due date | Edit the submitted return in EmaraTax | The due date |
What it costs now
| Situation | Penalty from 14 April 2026 | Before (Cabinet Decision 49/2021) |
|---|---|---|
| Voluntary disclosure before any audit notice | 1% of the tax difference per month since the original due date | 5% to 40%, stepped by year |
| Disclosure after the FTA notifies an audit | 15% fixed plus 1% per month | 50% plus 4% per month |
| Incorrect return (fixed penalty) | AED 500, not applied if corrected by the due date | AED 1,000, then 2,000 |
| Paying the disclosed tax late | 14% a year, charged monthly | 2% then 4% a month |
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Found it yourself, eight months late
A missed reverse charge left AED 30,000 of output tax undeclared in a return that was due eight months ago. You disclose within the 20 business days. Penalty: 1% × 8 months × AED 30,000 = AED 2,400, plus the AED 30,000 tax, paid within 20 business days of submitting.
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Same error, found by the FTA after an audit notice
Now it is 15% × AED 30,000 = AED 4,500 fixed, plus 1% a month. At eight months that adds AED 2,400, for AED 6,900 in penalties. Disclosing first saved AED 4,500.
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A small error
A supplier invoice for AED 4,000 of VAT was claimed twice. The difference is under AED 10,000, so you reverse it in the next return's adjustment column. No Form 211.
Filing Form 211 in EmaraTax
- Open VAT in your taxable person's dashboard and choose voluntary disclosure, then select the return period that contained the error.
- The original figures appear box by box. Enter the corrected figures; the portal calculates the difference.
- Explain the error in plain words: what happened, how you found it, how you calculated the correction. "Bookkeeping error" is not an explanation.
- Attach the evidence: the invoices, the calculation, and a reconciliation from the original figure to the corrected one.
- Submit, note the reference, and pay any tax within 20 business days.
Questions people actually ask
Do I need a voluntary disclosure if the error was in my favour?
If you underclaimed input tax or overpaid output tax, you are correcting in your own favour. Below AED 10,000, use the next return. Above it, a disclosure is the route, and there is no penalty when no tax was underpaid. Remember the five-year limit on claiming it back.
When does the 20-business-day clock start?
When you become aware of the error, for example when a reconciliation shows it or your accountant tells you. Write that date down; it is what the FTA will measure against.
Does the new penalty apply to errors from before April 2026?
The new penalty table took effect on 14 April 2026. How it applies to errors and disclosures that straddle that date is a technical question; if a large amount is involved, take advice on the specific periods before filing.
Can I correct an error in the same return period it happened?
If the return has not been filed, just fix your books. If it has been filed but the due date has not passed, edit the submitted return in EmaraTax.
Where these facts come from
Checked against the following on 8 October 2026. Rules and dates change — if you are reading this long after that date, verify before you act on it.
- Federal Decree-Law No. 17 of 2025 amending the Tax Procedures Law (KPMG summary)
- Cabinet Decision No. 17 of 2026 amending the Tax Procedures Executive Regulation (analysis)
- Cabinet Decision No. 129 of 2025 on administrative penalties (DLA Piper)
- Federal Tax Authority — legislation
WisoBooks is a bookkeeping and business-management tool, not an accounting, tax or legal advisor. Nothing on this page is tax advice, and tax rules change. Confirm your own obligations with the relevant authority or a qualified advisor.
