What Does UAE Voluntary Disclosure Assistance Cost?

• 29 September, 2026
• By the Exiloz tax team
• Tax Compliance

Last reviewed 29 September 2026 by the Exiloz tax team against the UAE legislation in force on that date. Tax law moves — confirm any figure against tax.gov.ae before you act on it.

A wrong return has more than one price

An incorrect VAT return does not come with a single cost. You may owe the missing tax, a 1% monthly disclosure penalty and, if payment slips, a separate late-payment charge. An FTA audit notice changes the calculation again, and any adviser's fee sits on top. Good voluntary disclosure support separates those lines before anything is filed.

This guide prices each part of a UAE voluntary disclosure, using the current penalty schedule in force since 14 April 2026. It covers the tax difference, the 1% penalty, the payment deadline and the audit-notice rule. It also sets out what paid assistance should deliver for the fee. Each figure comes from Cabinet Decision No. 40 of 2017 as amended, or the FTA guides.

What does a UAE voluntary disclosure cost?

Four separate amounts, which should never be blended into one number. The first is the tax difference itself, the extra VAT the corrected return shows. Then come the 1% monthly disclosure penalty, any late-payment penalty at 14% a year, and the adviser's private fee.

The first three go to the UAE Federal Tax Authority, and the fourth pays for the preparation work. A merged quote hides what the error really costs you. No official source publishes a consultant tariff, so every assistance fee is a private quote based on scope.

Quick Answer

A UAE voluntary disclosure costs the tax difference, a 1% monthly penalty and any late-payment penalty. Adviser fees are separate private charges and do not reduce the statutory amounts owed.

How is the 1% voluntary disclosure penalty calculated?

It is 1% of the tax difference for each month, or part of a month, from the day after the original return's due date. The count stops when the voluntary disclosure is submitted. Filing sooner is the simplest way to cut the penalty.

Take an illustrative return due 28 June 2026 that understated VAT by AED 18,000, disclosed 10 August 2026. The period covers one full month and part of a second, so the penalty is AED 18,000 × 1% × 2, or AED 360. Together, tax and penalty total AED 18,360.

Quick Answer

The UAE voluntary disclosure penalty is 1% of the tax difference per month or part month. It runs from the day after the due date until the disclosure is submitted.

When must tax from a voluntary disclosure be paid?

Within 20 business days of submitting the voluntary disclosure. That date is the payment due date under the current schedule to Cabinet Decision No. 40 of 2017. After it passes, any unpaid tax attracts the late-payment penalty.

The late-payment penalty is 14% a year, charged monthly from the day after the due date. It is separate from the 1% disclosure penalty, so a quick filing followed by slow payment still grows the bill. Our guide to the 2026 penalty regime explains why older articles quoting monthly percentages are now wrong.

Quick Answer

Tax found through a UAE voluntary disclosure is due 20 business days after submission. Unpaid tax after that date attracts a 14% annual penalty, charged monthly on the balance owed.

What changes after an FTA audit notice?

The price rises sharply. If the business has not submitted a voluntary disclosure before the FTA notifies it of a tax audit, the schedule adds a fixed 15% penalty. That 15% is charged on the tax difference, on top of the 1% monthly penalty.

In the example above, 15% of AED 18,000 would add AED 2,700 to the AED 360 monthly amount. The 15% applies only when the FTA has already notified the business of an audit. Once an audit notice arrives, the chance of a clean correction has gone.

Quick Answer

Correcting a UAE VAT error before an FTA audit notice avoids the fixed 15% penalty entirely. After notification, the 15% applies to the tax difference, plus the 1% monthly penalty.

What should voluntary disclosure assistance include?

A named scope, not a "filing service". It should cover a review of the affected return against the ledger, invoices and credit notes. It should then produce a tax-difference calculation showing the corrected figures and the months counted.

The FTA's Voluntary Disclosure User Guide expects the changed return values and a letter explaining the background, errors, corrections and supporting documents. Assistance should draft that letter, prepare the form and hand over the tax and penalties to pay. No adviser can remove the underlying tax difference, whatever the sales pitch says.

Quick Answer

Paid UAE voluntary disclosure assistance should review records, calculate the tax difference, draft the explanation letter and prepare the form. It cannot reduce the tax that the correction itself shows.

Frequently Asked Questions

Main Takeaways

A UAE voluntary disclosure costs the tax difference plus 1% of it for each month since the return was due. Tax found this way is payable within 20 business days of submission. Late payment then adds 14% a year, charged monthly on the unpaid balance. Waiting for an FTA audit notice adds a fixed 15% penalty on the tax difference.

Price the Correction Before You File

The real cost of a voluntary disclosure depends on three things. They are the size of the error, the speed of disclosure and the speed of payment. The statutory amounts follow the published schedule, so they can be calculated before filing. The adviser's fee is the only negotiable line here, so keep it separate from everything owed to the FTA.

If you have found an error, record the date, freeze the records and calculate the tax difference first. Then decide whether the correction goes in the next return or needs a disclosure. Every month of delay adds another 1% of the tax difference to the bill. Exiloz can prepare the calculation, letter and EmaraTax form within a fixed, written scope.

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