Voluntary disclosure — correcting a VAT or Corporate Tax return
If a filed return was wrong, correcting it yourself before the FTA finds it generally costs much less. We quantify the error, decide whether it needs a voluntary disclosure or can go in the next return, and prepare the disclosure with a clear explanation.
When a voluntary disclosure is needed
A voluntary disclosure is the formal way to correct an error or omission in a tax return, refund application or assessment that you have already submitted. Under the Tax Procedures Law it is required once you become aware of an error that changes the tax due. For VAT, smaller tax differences — generally up to AED 10,000 — can usually be corrected in the next return instead.
What it costs since 14 April 2026
Cabinet Decision No. 129 of 2025 changed the VAT and excise penalty rules from 14 April 2026. For a voluntary disclosure, the old tiered percentage was replaced by a penalty of 1% of the tax difference for each month from the original due date until the disclosure is made. Errors first found by the FTA attract higher penalties, so acting early matters. Corporate Tax disclosures follow their own penalty rules.
Typical errors we see
- VAT recovered on blocked expenses, or without a valid tax invoice.
- Export sales zero-rated without the evidence the rules require.
- Reverse charge on imported services missed or double-counted.
- Sales recorded in the wrong period or the wrong emirate.
- Corporate Tax computations that missed non-deductible items or related-party adjustments.
How we help
- We review the return against your records, quantify the tax difference and confirm whether a disclosure is required.
- We prepare the disclosure on EmaraTax with a clear, factual explanation and calculate the penalty exposure in advance.
- We fix the underlying cause in your bookkeeping so the error does not repeat.
- For groups and cross-border businesses, we review related-party and overseas transactions, where errors are most common, and we support you with any follow-up FTA queries or assessments.
Sources: Federal Decree-Law No. 28 of 2022 on Tax Procedures, as amended by Federal Decree-Law No. 17 of 2025 (Article 10); Cabinet Decision No. 52 of 2017 on the VAT Executive Regulation, as amended; Cabinet Decision No. 129 of 2025 on administrative penalties (effective 14 April 2026); Cabinet Decision No. 75 of 2023 (Corporate Tax penalties).
Frequently asked questions
Can I correct a small VAT error in my next return?
Generally yes, where the tax difference is AED 10,000 or less. Above that, a voluntary disclosure is required. We check which applies before anything is filed.
Is there a deadline for a voluntary disclosure?
It should be made as soon as you become aware of the error. Under the current VAT and excise rules the penalty grows each month, so delay is costly.
Do I have to pay the tax with the disclosure?
Any additional tax shown by the disclosure becomes payable, together with the related penalty once assessed. We confirm the amounts with you before filing.
Ready to hand over your books and returns?
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