VAT Voluntary Disclosure in the UAE: When and How to Correct a Filed Return
Found an error in a filed VAT return? Here is how voluntary disclosure works, what it can cost and why timing matters.
Regent Advisory Team · 21 Sep 2026 · 2 min read
A VAT voluntary disclosure is how a business corrects an error in a return it has already filed. Acting before the FTA raises the issue usually leaves you with a more manageable route.
What it can cost
A voluntary disclosure can attract a monthly penalty of 1% of the tax difference. If the disclosure is not made before audit notification, a fixed 15% penalty can apply on top of the monthly component.
When to consider one
- A recurring coding error affected several returns.
- Output tax was under-declared or input tax over-claimed.
- A health check found differences between returns and the ledger.
Steps we follow
- \\Assess materiality.\\ Confirm whether the error requires disclosure and how far back it goes.
- \\Quantify each period.\\ Calculate the tax difference period by period, with supporting evidence.
- \\Prepare the disclosure.\\ Submit a complete correction rather than a partial one.
- \\Fix the cause.\\ Change the tax code, process or control so the error does not repeat.
Why timing matters
Once the FTA has notified you of an audit, the fixed penalty can apply. Reviewing your returns early is usually cheaper than correcting under audit.
If you suspect an error, start with a [VAT health check]\(/services/vat-indirect-tax/vat-health-check) or go straight to our [voluntary disclosure service]\(/services/vat-indirect-tax/vat-voluntary-disclosure).
\Penalty mechanisms follow FTA decisions and can change. Confirm the current position before submitting.\