UAE VAT Late Payment Penalty Calculator 2026
Work out FTA administrative penalties for a late VAT payment (2% then 4% a month, capped at 300%), a late return, late registration or a voluntary disclosure, from the due date and amount.
In short
UAE late VAT payment penalties are 2% of the unpaid tax the day after the due date, then 4% per month from one month after the due date, capped at 300%; a late return costs AED 1,000 (AED 2,000 if repeated within 24 months), late registration AED 10,000, and a voluntary disclosure AED 1,000 plus 5% of the unpaid tax per year. Returns and payment are due by the 28th of the month after the period.
Who this is for: UAE businesses and accountants estimating FTA penalties after a missed VAT deadline, registration or error.
The FTA's VAT penalty schedule
| Violation | Penalty |
|---|---|
| Late payment of VAT | 2% of the unpaid tax the day after the due date; 4% per month from one month after the due date; capped at 300% |
| Late VAT return | AED 1,000 first time; AED 2,000 if repeated within 24 months |
| Late registration | AED 10,000 |
| Late deregistration | AED 1,000 per month, maximum AED 10,000 |
| Voluntary disclosure | AED 1,000 (AED 2,000 repeat) + 5% of the unpaid tax per year until disclosed |
| Error found by FTA audit | 50% of the unpaid tax + 4% per month |
| Incorrect tax invoice / no invoice | AED 2,500 per instance |
| Failure to keep records | AED 10,000; AED 20,000 repeat |
Returns and payments are due by the 28th of the month following the tax period (quarterly for most businesses). The 2021 amendments cut the old 1%-per-day regime to the 4%-per-month schedule above and introduced periodic penalty-reduction programmes for businesses that settle arrears.
Assumptions
- Late payment: 2% on the day after the due date plus 4% on each monthly anniversary from one month after the due date up to the payment date, capped at 300%, per the UAE rules file.
- Fixed penalties: AED 1,000/2,000 late return, AED 10,000 late registration, AED 1,000 per month (max 10,000) late deregistration, voluntary disclosure AED 1,000/2,000 + 5% per year.
- Penalty-reduction programmes and reconsideration outcomes are not modelled.
Worked example
2% on 29 January = AED 1,000. One month after the due date is 28 February; monthly 4% charges fall on 28 February, 28 March and 28 April = 3 × AED 2,000 = AED 6,000.
Total penalty AED 7,000 (14% of the tax) plus AED 1,000 if the return was also late.
Frequently asked questions
Can VAT penalties be reduced or waived?
Yes — the FTA runs reduction programmes (for example penalties reduced to 30% for taxpayers who settled by set dates) and accepts reconsideration requests within 40 business days with a justified reason.
Is the 4% charged on the original tax or the remaining balance?
On the tax still unpaid at each monthly date; part-payments reduce the base from that point.
What if I filed on time but paid late?
Only the late-payment penalty applies — no fixed return penalty.
Does a voluntary disclosure always carry a penalty?
Yes, the fixed AED 1,000 plus the 5%-per-year amount, but far less than the 50% that applies if the FTA finds the error first.
What is the penalty for late VAT payment in the UAE?
2% of the unpaid tax immediately, then 4% per month from one month after the due date, up to 300% of the tax.
What is the fine for filing a VAT return late in the UAE?
AED 1,000 for the first late return and AED 2,000 for a repeat within 24 months, plus late-payment penalties if tax was also unpaid.
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