CD 40/2017 — Administrative penalties: VAT, Excise Tax and Tax Procedures (schedule in force from 14 April 2026)

Factual summary

The schedule of administrative penalties for violations of the Tax Procedures Law (Table 1), the Excise Tax Law (Table 2) and the VAT Law (Table 3). Since 14 April 2026 late payment attracts a monthly penalty of 14% per annum on the unpaid tax, a voluntary disclosure attracts 1% of the tax difference per month, and failure to disclose before a tax audit notice attracts 15% plus 1% per month; fixed amounts apply to registration, records, returns and invoicing failures. The most-used items are listed below. The full table is in the linked official consolidated PDF.

What it means in practice Professional insight

Who: every VAT and Excise Tax registrant and every person with Tax Procedures Law obligations. What to check: filing and payment dates, timely voluntary disclosure of errors, and invoice and credit-note issuance, since penalties accrue monthly from the day after the due date.

Key provisions

• Table 1, item 1 Failure to keep the required records: AED 10,000 for each violation; AED 20,000 in each case of repeated violation within 24 months from the date of the last violation.
• Table 1, item 2 Failure to submit tax data, records and documents in Arabic when requested: AED 5,000.
• Table 1, item 3 Failure to submit a registration application within the timeframe: AED 10,000.
• Table 1, item 4 Failure to submit a deregistration application within the timeframe: AED 1,000 on late submission and on the same date monthly, up to a maximum of AED 10,000.
• Table 1, item 5 Failure to inform the FTA of changes to the tax record: AED 1,000 for each violation; AED 5,000 in each case of repeated violation within 24 months.
• Table 1, item 8 Failure to submit the Tax Return on time: AED 1,000 for the first time; AED 2,000 in case of repetition within 24 months.
• Table 1, item 9 Failure to settle Payable Tax on time: a monthly penalty of 14% per annum, for each month or part thereof, on the unsettled amount from the day following the due date and on the same date monthly thereafter; for a Voluntary Disclosure or Tax Assessment the due date is 20 business days from submission or receipt.
• Table 1, item 10 Incorrect Tax Return: AED 500, unless corrected within the return deadline or by a Voluntary Disclosure that results in no difference in the Due Tax.
• Table 1, item 11 Voluntary Disclosure of errors: a monthly penalty of 1% of the Tax Difference, for each month or part thereof, from the day after the return due date (or the refund application) until the disclosure is submitted.
• Table 1, item 12 No Voluntary Disclosure before notification of a Tax Audit: a fixed penalty of 15% of the Tax Difference plus a monthly penalty of 1% of the Tax Difference for each month or part thereof.
• Table 1, item 13 Failure to facilitate the Tax Auditor (Art. 20 of the Tax Procedures Law): AED 20,000.
• Table 1, item 15 Failure to calculate tax due on the import of goods: 50% of the unpaid or undeclared tax.
• Table 2, items 1–3 Excise Tax: prices not displayed inclusive of tax AED 5,000; designated-zone conditions the higher of AED 50,000 or 50% of the tax; price lists not provided AED 5,000 for the first time and AED 10,000 in case of repetition.
• Table 3, items 1–3 VAT: prices not displayed inclusive of tax AED 5,000; failure to notify use of the profit margin scheme AED 2,500; designated-zone conditions the higher of AED 50,000 or 50% of the tax.
• Table 3, items 4–6 VAT: failure to issue a Tax Invoice or Tax Credit Note (or the alternative document) within the legal period, or to comply with electronic issuance conditions: AED 2,500 for each detected case.