How to Submit a Voluntary Disclosure to Correct Tax Errors in the UAE

Introduction:
Making errors on your UAE VAT or excise tax returns can be stressful, but the Federal Tax Authority (FTA) offers a structured way to fix them: the Voluntary Disclosure process. Here’s how it works and why timely action is key.

What is a Voluntary Disclosure?
A Voluntary Disclosure allows businesses to inform the FTA about errors or omissions in:

• Tax returns
• Tax assessments
• Tax refund applications

When to Submit a Voluntary Disclosure:
If you’ve discovered an error over AED 10,000, you must file a Voluntary Disclosure within 20 business days of discovery.
For errors under AED 10,000, you can either:

• Correct it in the next tax return
• Or file a Voluntary Disclosure if there’s no upcoming return to amend.

Key Steps to Submit a Voluntary Disclosure:

• Access the eServices Portal
• Locate the specific VAT or Excise Tax Return or Assessment you want to correct
• Provide detailed explanations and upload supporting documents
• Update the “As Reported” vs. “As Current” amounts to reflect accurate figures
  
  
• Submit the form and monitor status updates

Penalties for Voluntary Disclosures:
Depending on how soon you disclose, the FTA may impose percentage-based penalties (5%–40%) on the difference. If you wait until an audit, the penalties can be even higher—up to 50% of the unpaid tax plus monthly penalties.

Attach the Official User Guide:
Download the complete Voluntary Disclosure User Guide to understand every step in detail:
Download PDF
(Here, you can attach the PDF file Voluntary-Disclosure-user-guide-English.pdf for easy download and reference.)

Call to Action:
Capital Zone Accounting can assist you with your Voluntary Disclosures to ensure accurate submissions and avoid hefty fines.

Book your consultation today and safeguard your business’s compliance!