On this page
- What you need to know now
- Do not calculate a current fine from the 2017 table
- Reconcile the assessment and the taxpayer’s account
- Choose the appropriate correction or dispute process
- Address the cause of recurring violations
- A practical way forward
- Frequently asked questions
- Official sources & further reading
What you need to know now
The 2017 penalty table is superseded in material respects. Current reviews must use the relevant legislation, including the framework effective 14 April 2026.
The original article is preserved below as a historical record. Earlier deadlines, rates, offers and approval statements should not be used as current guidance.
- Match the violation to the correct provision.
- Distinguish a government fee from a penalty.
- Keep the decision and notification date for any challenge.
Do not calculate a current fine from the 2017 table
The original article reports the initial penalty framework and mixes certain service fees with penalties. It is preserved as historical material. The relevant framework has changed, including amendments effective in April 2026, so the old figures should not be used to estimate a present assessment.
Start with the conduct, tax type and date involved. A late return, an incorrect return, an account-update failure and a late payment are different issues. Describe them separately before applying a provision. A headline stating that penalties start at one universal amount is not a reliable basis for calculating every case.
Reconcile the assessment and the taxpayer’s account
Keep the actual notice and account statement together. Identify each line assessed, the stated reason, calculation period and payments already made. Where an amount has changed, retain the adjustment evidence rather than replacing the original notice without an explanation.
For a business with several periods or tax accounts, prepare a reconciliation by assessment reference. This helps distinguish a disputed amount from a payment-allocation issue. It also prevents a duplicated payment or an overlooked balance when different employees handle treasury, tax returns and FTA correspondence.
Choose the appropriate correction or dispute process
A tax error and a disagreement with an authority decision require an assessment of the available procedure. A general enquiry, a voluntary disclosure and reconsideration have different purposes and requirements. Do not assume sending one type of request automatically protects the deadline for another.
Record when the issue was discovered and when a decision was notified. Prepare the calculation and supporting facts before choosing the submission route. Obtain timely advice where the amount or legal issue is material. No portal or adviser should promise that a request will automatically cancel an assessment or remove all consequences.
Address the cause of recurring violations
Use the issue to identify a specific control improvement. If an account update was missed, connect licence changes to the tax calendar. If payment was late, clarify approval and funding responsibilities. If a return was wrong, review the transaction code, reconciliation or evidence that caused the error.
Keep a short action log with the owner and evidence of completion. Review whether the fix works in the following period rather than adding a policy that staff do not use. This practical approach supports compliance without claiming that any process can guarantee the absence of future penalties.
YOUR NEXT STEPS
A practical way forward
- 01
Step 1
Identify the conduct, date and tax type.
- 02
Step 2
Check the applicable decision and transitional position.
- 03
Step 3
Review correction, reconsideration or payment options.
CLEAR ANSWERS
Frequently asked questions
Can I calculate a present fine from this table?
No.
Does a portal guarantee a penalty-free result?
No. The outcome depends on compliance and the applicable law.
Read the original article First published 4 October 2017 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
UAE VAT Penalties: The UAE Council of Ministers on Monday has announced the penalties for violations of the country’s tax law.
Penalties for violation and other fees
- Failure to keep required records and documents – AED 10,000 (First time) & AED 50,000 (Repeated offence)
- Failure to display prices inclusive of excise tax – AED 15,0000
- Failure to comply with conditions and procedures related to keeping the taxable goods in a designated zone or moving them to another designated zone – AED 50,000 or 50% of tax whichever is higher paid on the goods that resulted in the violation
- Tax registration services – Free of charge
- Issuance of tax registration certificate – Free of charge
- Attested paper registration certificate – AED 500
- Tax Agents: Registration and renewal – AED 3,000 (for 3 years)
- Registration and renewal fee for an accounting software provider – AED 10,000 (1 year)
- Registering a designated zone – AED 2,000 per year
- Service fee for registering a warehouse keeper – Free of charge
- Issuing an electronic warehouse keeper certificate – Free of charge
- Issuing an official printed warehouse keeper certificate – AED 500
A fine must be no less than AED 500 and no more than triple the value of the tax on the transaction
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VERIFY THE DETAIL
Official sources & further reading
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
