Free Tool
UAE Tax Penalty Calculator
Work out the FTA penalty for a late registration, return, payment, deregistration or voluntary disclosure, down to a single day late. Covers VAT, Corporate Tax, Excise Tax and e-invoicing, using the penalties in force today.
Updated for Cabinet Decision No. 129 of 2025 (VAT & Excise, from 14 April 2026) and No. 173 of 2026 (e-invoicing)
Return not filed by the deadline — one penalty per late return.
AED 1,000 (AED 2,000 if repeated within 24 months)
Cabinet Decision No. 40 of 2017 as amended (incl. No. 129 of 2025), Table 1, item 8
The deadline is 28 days after the period end.
- Tax paid late is penalised separately — use “Late payment of tax”.
This calculator gives an estimate based on the published penalty tables. The FTA calculates and imposes the actual penalty, and the amount can depend on facts the calculator can't see, such as partial payments, earlier violations or a waiver. It is not legal advice.
All UAE Tax Penalties at a Glance
The full list of administrative penalties the FTA can impose, with the legal basis for each.
VAT penalties
| Violation | Penalty |
|---|---|
| Late VAT registration | AED 10,000 |
| Late VAT return filing | AED 1,000 (AED 2,000 if repeated within 24 months) |
| Late payment of VAT | 14% a year on the unpaid tax, charged monthly |
| Voluntary disclosure of an error | 1% of the tax difference per month or part month |
| Error found after an FTA audit notice | 15% of the tax difference + 1% per month |
| Incorrect tax return | AED 500 |
| Late VAT deregistration | AED 1,000, then AED 1,000 a month (max AED 10,000) |
| Failure to update your tax record | AED 1,000 (AED 5,000 if repeated within 24 months) |
| Failure to keep required records | AED 10,000 (AED 20,000 if repeated within 24 months) |
| Records not provided in Arabic | AED 5,000 |
| Failure to facilitate a tax audit | AED 20,000 |
| Legal representative: appointment not notified | AED 1,000 |
| Legal representative: late return | AED 1,000 (AED 2,000 if repeated within 24 months) |
| Failure to account for tax on behalf of another person | 14% a year on the unpaid tax, charged monthly |
| Tax on imported goods not calculated | 50% of the unpaid or undeclared tax |
| Prices not shown inclusive of VAT | AED 5,000 |
| Profit margin scheme not notified | AED 2,500 |
| Designated Zone goods conditions breached | AED 50,000 or 50% of the tax, whichever is higher |
| Tax invoice not issued on time | AED 2,500 per case |
| Tax credit note not issued on time | AED 2,500 per case |
| Electronic invoice conditions not met | AED 2,500 per case |
Corporate Tax penalties
| Violation | Penalty |
|---|---|
| Late Corporate Tax registration | AED 10,000 |
| Late Corporate Tax return filing | AED 500 a month for months 1–12, then AED 1,000 a month |
| Late payment of Corporate Tax | 14% a year on the unpaid tax, charged monthly |
| Voluntary disclosure of an error | 1% of the tax difference per month or part month |
| Error found after an FTA audit notice | 15% of the tax difference + 1% per month |
| Incorrect Corporate Tax return | AED 500 |
| Late or missing declaration | AED 500 a month for months 1–12, then AED 1,000 a month |
| Late Corporate Tax deregistration | AED 1,000, then AED 1,000 a month (max AED 10,000) |
| Failure to update your tax record | AED 1,000 (AED 5,000 if repeated within 24 months) |
| Failure to keep required records | AED 10,000 (AED 20,000 if repeated within 24 months) |
| Records not provided in Arabic | AED 5,000 |
| Failure to facilitate a tax audit | AED 20,000 |
| Legal representative: appointment not notified | AED 1,000 |
| Legal representative: late return | AED 500 a month for months 1–12, then AED 1,000 a month |
Excise Tax penalties
| Violation | Penalty |
|---|---|
| Late Excise Tax registration | AED 10,000 |
| Late Excise Tax return filing | AED 1,000 (AED 2,000 if repeated within 24 months) |
| Late payment of Excise Tax | 14% a year on the unpaid tax, charged monthly |
| Voluntary disclosure of an error | 1% of the tax difference per month or part month |
| Error found after an FTA audit notice | 15% of the tax difference + 1% per month |
| Incorrect tax return | AED 500 |
| Late Excise Tax deregistration | AED 1,000, then AED 1,000 a month (max AED 10,000) |
| Failure to update your tax record | AED 1,000 (AED 5,000 if repeated within 24 months) |
| Failure to keep required records | AED 10,000 (AED 20,000 if repeated within 24 months) |
| Records not provided in Arabic | AED 5,000 |
| Failure to facilitate a tax audit | AED 20,000 |
| Legal representative: appointment not notified | AED 1,000 |
| Legal representative: late return | AED 1,000 (AED 2,000 if repeated within 24 months) |
| Failure to account for tax on behalf of another person | 14% a year on the unpaid tax, charged monthly |
| Tax on imported goods not calculated | 50% of the unpaid or undeclared tax |
| Prices not shown inclusive of Excise Tax | AED 5,000 |
| Designated Zone conditions breached | AED 50,000 or 50% of the tax, whichever is higher |
| Price lists not provided | AED 5,000 (AED 10,000 if repeated) |
E-invoicing penalties
| Violation | Penalty |
|---|---|
| E-invoicing system or ASP not in place | AED 5,000, then AED 5,000 a month (max AED 50,000 in 12 months) |
| E-invoice not issued and transmitted on time | AED 100 per invoice (max AED 5,000 per calendar month) |
| E-credit note not issued and transmitted on time | AED 100 per credit note (max AED 5,000 per calendar month) |
| ASP not told about changes to your data | AED 250 per day (max AED 5,000 per calendar month) |
Sources: Cabinet Decision No. 40 of 2017 as amended by Nos. 49 of 2021, 108 of 2021 and 129 of 2025 (VAT, Excise Tax and Tax Procedures); Cabinet Decision No. 75 of 2023 as amended by No. 10 of 2024 (Corporate Tax); Cabinet Decision No. 173 of 2026 (e-invoicing).
Frequently Asked Questions
What is the penalty for filing a VAT return one day late?
+
AED 1,000 for the first late return, or AED 2,000 if you filed another return late in the previous 24 months. It is a one-off penalty per return, so it is the same whether you are one day or several months late. Any VAT paid late is penalised separately.
What is the penalty for a late Corporate Tax return?
+
AED 500 for each month or part of a month for the first 12 months, then AED 1,000 a month from the 13th month. Because part of a month counts as a full month, filing just one day late costs AED 500.
How is the late payment penalty calculated?
+
For VAT and Excise Tax (from 14 April 2026) and for Corporate Tax, the penalty is 14% a year on the unpaid tax, charged for each month or part of a month. That is about 1.17% of the unpaid tax per month, starting the day after the due date.
What is the penalty for late VAT or Corporate Tax registration?
+
AED 10,000 for each. For Corporate Tax, the FTA's waiver initiative cancels the AED 10,000 if you file your first Corporate Tax return or annual declaration within 7 months of the end of your first tax period.
What changed on 14 April 2026?
+
Cabinet Decision No. 129 of 2025 revised the VAT and Excise Tax penalties. Late payment moved from 2% + 4% + 1% a day to 14% a year charged monthly; voluntary disclosures moved from 5%–40% to 1% of the tax difference per month; an error found after an audit notice moved from 50% to 15% plus 1% a month; an incorrect return dropped to AED 500; and failing to update your tax record dropped to AED 1,000.
Can a penalty be reduced or waived?
+
You can ask the FTA to reconsider a penalty within the time limit set by the Tax Procedures Law, and the FTA also runs waiver initiatives from time to time. Whether a penalty can be reduced depends on your circumstances, so speak to a tax professional before applying.