Mistakes in tax returns happen. A wrong VAT figure, a missed invoice, or a wrong corporate tax amount. In the UAE, the way to fix this is a voluntary disclosure. It tells the Federal Tax Authority (FTA) about the error before they find it.
Filing it on time keeps your penalty low. Waiting until an audit makes it much higher.
What Is a Voluntary Disclosure?
A voluntary disclosure is a form you submit on EmaraTax to correct an error in a tax return, a tax assessment or a refund application you already sent to the FTA. The rule comes from Article 10 of Federal Decree-Law No. 28 of 2022 on Tax Procedures. It applies to VAT, excise tax and corporate tax.
When Must You File One?
You must file a voluntary disclosure when:
- Your tax return or an FTA tax assessment is wrong and you paid less tax than you should have.
- Your refund application is wrong and you asked for more refund than you should get.
- Your return has an error or omission, even if the tax due does not change.
You may file one (it is optional) when the error means you paid more tax than needed, or claimed less refund than you were owed.
The AED 10,000 Rule
The Executive Regulation of the Tax Procedures Law (Cabinet Decision No. 74 of 2023) sets a simple rule based on the size of the error:
| Size of the error | What to do |
|---|---|
| More than AED 10,000 | File a voluntary disclosure within 20 business days of finding the error. |
| AED 10,000 or less | Correct it in the next tax return you file. If there is no return to correct it in, file a voluntary disclosure within 20 business days. |
The 20 business days start from the day you become aware of the error. Not the day the return was filed.
Penalties for Voluntary Disclosure in 2026
The penalty depends on whether you disclose before or after the FTA tells you about an audit. For VAT, Cabinet Decision No. 129 of 2025 changed the rules from 14 April 2026. Corporate tax follows the same structure under Cabinet Decision No. 75 of 2023.
| Situation | Penalty |
|---|---|
| You file the disclosure yourself, before any audit notice | 1% of the tax difference for each month (or part of a month) from the original due date |
| You did not disclose and the FTA notifies you of an audit | Fixed 15% of the tax difference, plus 1% for each month |
| Incorrect tax return | AED 500, unless you correct it before the return deadline |
Before April 2026, VAT voluntary disclosure penalties were much higher, up to 40% for old errors and 50% plus 4% a month after an audit notice. The new rules reward businesses that fix mistakes early. See our full guide on VAT penalties in the UAE and corporate tax penalties.
How to File a Voluntary Disclosure on EmaraTax
- Log in to EmaraTax and open your taxable person profile.
- Go to the VAT or Corporate Tax section and choose Voluntary Disclosure.
- Select the tax period with the error.
- Enter the corrected figures and explain the reason for each change.
- Upload supporting documents, such as corrected tax invoices or ledgers.
- Submit and pay any extra tax due. The FTA will then issue a penalty assessment, if one applies.
Time Limit
In general, a voluntary disclosure cannot be filed more than 5 years after the end of the tax period it relates to (Article 46 of the Tax Procedures Law). If your error is close to the 5-year limit, get advice quickly.
Common Errors That Need a Voluntary Disclosure
- Output VAT missed on a sales invoice.
- Input VAT claimed on blocked items, like entertainment or personal-use cars.
- Wrong emirate entered for sales.
- Reverse charge on imported services not recorded.
- Corporate tax return using wrong taxable income or wrong exempt income.
Should You Use a Tax Agent?
A voluntary disclosure is checked closely by the FTA. A wrong or incomplete one can lead to more questions or a tax audit. An FTA-registered tax agent can review the error, work out the right figures and file the disclosure for you.
Frequently Asked Questions
Is voluntary disclosure required if the error is small?
If the tax difference is AED 10,000 or less, you can usually correct it in your next tax return instead.
What is the deadline to file a voluntary disclosure?
20 business days from the date you find out about the error, when the error is more than AED 10,000.
What is the penalty for voluntary disclosure in the UAE?
1% of the tax difference for each month since the original due date. If the FTA notifies you of an audit first, it is 15% plus 1% a month.
Can I file a voluntary disclosure for corporate tax?
Yes. The same Tax Procedures Law applies to corporate tax, and you file it on EmaraTax.
Official Sources
- Federal Decree-Law No. 28 of 2022 on Tax Procedures
- Cabinet Decision No. 74 of 2023 (Executive Regulation)
- Cabinet Decision No. 40 of 2017 and its amendments (VAT penalties)
- Cabinet Decision No. 75 of 2023 (Corporate tax penalties)
Note: This article provides general information only and is not tax advice. Confirm the current requirements with the Federal Tax Authority or a qualified tax professional.