Everyone makes mistakes, including on tax returns. In the UAE, the formal way to fix an error in a VAT or Corporate Tax return you've already filed is a voluntary disclosure. Under the penalty rules that took effect on 14 April 2026, correcting errors quickly is cheaper than ever, and waiting is more expensive.
When you need a voluntary disclosure
You generally need to file one when you discover that a return or refund application you've submitted:
- Understated the tax payable (for example, missed sales or over-claimed input VAT)
- Overstated a refund you were entitled to
- Contains another error that affects the tax due
Some small VAT errors can be corrected in your next VAT return instead of through a voluntary disclosure. Check the FTA's current guidance to see whether your error qualifies before deciding.
Deadlines
- Submit the voluntary disclosure within 20 business days of becoming aware of the error.
- Pay any additional tax shown in the disclosure within 20 business days of submitting it.
Missing these deadlines can bring additional penalties and late payment charges, so act as soon as you find a problem.
How penalties work from 14 April 2026
| When you disclose | Penalty |
|---|---|
| Before the FTA notifies you of a tax audit | 1% of the tax difference for each month since the original due date |
| After the FTA notifies you of a tax audit | A fixed percentage of the tax difference plus the monthly charge |
This replaced the older system of fixed percentages (which could reach 40% before an audit and 50% after). The monthly approach rewards fixing errors early: an error corrected three months after the due date costs 3% of the tax difference; the same error corrected two years later costs 24%.
Example: you discover that a VAT return due 28 January understated VAT by AED 20,000. You disclose on time in late May, about four months after the due date. Penalty ≈ AED 20,000 × 1% × 4 = AED 800, plus the AED 20,000 tax itself, paid within 20 business days.
Penalty rules can be complex in individual cases. Check the FTA's published guidance or ask an adviser for your specific situation. See also our guides to VAT penalties and Corporate Tax penalties.
How to file a voluntary disclosure
- Identify the error and the tax periods affected.
- Quantify it: recalculate the correct figures for each affected return.
- Gather evidence: invoices, ledgers and workings that support the correction.
- Complete the voluntary disclosure on EmaraTax, choosing the return being corrected.
- Explain the error clearly and briefly.
- Submit and pay any additional tax within the deadline.
- Fix the cause so it doesn't happen again.
Common errors that lead to voluntary disclosures
- Input VAT claimed without a valid tax invoice
- Missed reverse charge on imported services
- Blocked input VAT recovered (for example client entertainment)
- Sales recorded in the wrong tax period
- Zero-rating applied without the required export evidence
- Non-deductible expenses claimed in a Corporate Tax return
Most of these come from rushed quarter-end bookkeeping. Monthly reconciliations and a review before filing catch them before they reach a return. See The Bookkeeping Process and Month-End Closing Checklist.
Found an error in a return?
We review the error, calculate the impact, prepare the voluntary disclosure and help you respond to the FTA.