VAT penalties in the UAE are governed by Cabinet Decision 49 of 2021 (as amended). Here is the current schedule every finance team should know.
Registration penalties
- Late registration: AED 10,000
- Late deregistration: AED 1,000/month (cap AED 10,000)
Filing & payment penalties
- Late filing: AED 1,000 first offence, AED 2,000 repeat within 24 months
- Late payment: 2% immediate + 4% monthly interest (cap 300%)
- Incorrect return: AED 1,000 first, AED 2,000 repeat
Record-keeping & other
- Missing records: AED 10,000 first / AED 20,000 repeat
- Non-Arabic records on request: AED 20,000
- Not issuing tax invoice: AED 5,000 per invoice
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Frequently asked questions
Quick answers to common UAE vat questions.
This article is for general guidance only and reflects FTA rules as of June 2026. Always confirm your specific position with a qualified UAE tax advisor.