VAT penalty calculator: late return and payment.
From 14 April 2026, a late UAE VAT return costs AED 1,000, or AED 2,000 for a repeat within 24 months, and unpaid VAT attracts 14% a year, charged monthly.
From 14 April 2026, a late UAE VAT return costs AED 1,000, or AED 2,000 for a repeat within 24 months, and unpaid VAT attracts 14% a year, charged monthly.
Estimates only, based on the rules in force on 29 September 2026. They are not tax advice and do not replace the figures in EmaraTax.
How it works
- A VAT return and the VAT due must reach the FTA by the 28th day after the end of the tax period (VAT Executive Regulation, Article 64).
- Late return: AED 1,000 the first time, and AED 2,000 for a repeat within 24 months (Cabinet Decision No. 40 of 2017, as amended by Cabinet Decision No. 129 of 2025, in force from 14 April 2026).
- Late payment: 14% a year on the unpaid VAT, charged for each month or part month after the due date, under the same table.
- The calculator assumes the unpaid amount stays the same until paid in full and does not cover other VAT penalties, such as for errors or invoices.
- Due dates before 14 April 2026 were under the earlier penalty rules, which the calculator does not apply.
Worked example
A distributor's VAT return for the quarter ending 30 June 2026, with AED 50,000 payable, was due on 28 July 2026. It files and pays on 10 September 2026, its first late return.
| Late return (first time) | 1,000.00 |
| Months or part months paid late | 2 |
| Late payment: 50,000 x 14% / 12 x 2 | 1,166.67 |
| Estimated penalties | 2,166.67 |
Paying on 29 August instead would still count as two months, because 29 August is part of the second month.
Frequently asked questions
Is a nil VAT return still due on time?
Yes. A return is due for every tax period, even with no sales, and filing it late triggers the late return penalty.
What if I find an error in a filed return?
Correct it through a voluntary disclosure where the rules require one. The penalty for a disclosure made before any audit notice is lower than for an error the FTA finds.
Where do I see the exact penalty?
EmaraTax shows the penalties raised on your account. This calculator gives an estimate.
Related terms and guides
VAT tax period · Voluntary disclosure · Output tax · VAT registration threshold. Full guide: UAE VAT Filing Calendar 2026: Every Quarterly Deadline. More free tools: UAE tax tools.
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