In short: If you have missed a UAE tax deadline, act now: most penalties keep growing each month. File the return, pay what you owe, and correct any errors through the proper process. Waiting to make everything perfect usually costs more than filing quickly.
Missing a tax deadline happens, especially with VAT returns every quarter and a corporate tax return every year. What matters is what you do next, because several UAE tax penalties are charged monthly. This guide sets out the main penalties and the steps to take.
The main penalties at a glance
VAT (from 14 April 2026)
- Late VAT return: AED 1,000 for the first time, AED 2,000 for a repeat within 24 months.
- Late payment: 14% per year, charged monthly on the unpaid tax for each month or part of a month.
- Error found after filing: 1% per month on the tax difference until a voluntary disclosure is submitted.
Corporate tax
- Late registration: AED 10,000.
- Late return: AED 500 for each month for the first 12 months, then AED 1,000 for each month.
- Late payment: 14% per year, charged monthly on the unpaid tax.
All taxes
- Failing to keep the required records: AED 10,000, rising to AED 20,000 for a repeat.
What to do now
- Find out exactly what is overdue. Check your EmaraTax account for outstanding registrations, returns and payments.
- File the overdue return as soon as possible, using the best figures you have from your accounts.
- Pay the tax due. Late payment penalties run monthly, so paying stops them growing.
- Correct errors properly. If you find a mistake in a return already filed, use a voluntary disclosure. The penalty grows each month the error is left.
- Fix the cause. Put a tax calendar in place and keep your books up to date so the next deadline is routine.
Frequently asked questions
What happens if I file my VAT return late?
From 14 April 2026, the penalty is AED 1,000 for the first late return and AED 2,000 for a repeat within 24 months. Late payment of the VAT is charged separately at 14% per year, monthly.
What happens if I file my corporate tax return late?
AED 500 for each month for the first 12 months, then AED 1,000 for each month after that. Late payment of corporate tax is charged at 14% per year, monthly.
What is the penalty for registering for corporate tax late?
AED 10,000, under Cabinet Decision No. 10 of 2024.
Should I wait until I can fix everything before filing?
No. Monthly penalties keep running, so file and pay as soon as you can, then correct any errors afterwards through the proper process.
Can a penalty be challenged?
If you believe a penalty is wrong, take advice quickly. Challenges are subject to time limits, and the facts and documents behind your case matter.
Get help from Alif
Alif is an accounting and tax firm in Dubai, with a tax team led by an FTA-registered Tax Agent. We bring overdue returns up to date, handle voluntary disclosures and set up a tax calendar so deadlines are not missed again. Book a free consultation to discuss your position.