# UAE VAT penalty calculator

> For VAT due on or after 14 April 2026, the late payment penalty is 14% a year of the unpaid tax, charged for each month or part month it stays unpaid (Cabinet Decision No. 129 of 2025). Filing a VAT return late costs AED 1,000, or AED 2,000 if you repeat it within 24 months.

Interactive calculator: https://www.countify.ae/tools/vat-penalty-calculator · Updated 2026-10-14 · Countify UAE

## Late payment penalties on AED 20,000 of VAT

VAT due 28 July 2026, return filed on time.

| Paid on | Months late (started) | Late payment penalty |
| --- | --- | --- |
| 10 Aug 2026 | 1 | AED 233.33 |
| 30 Sep 2026 | 3 | AED 700.00 |
| 31 Dec 2026 | 6 | AED 1,400.00 |
| 28 Jul 2027 | 12 | AED 2,800.00 |

Under the post-April 2026 rules each started month adds 14% ÷ 12 of the unpaid tax.

## How late payment penalties are worked out

From 14 April 2026, the FTA replaced the old fixed percentages with a monthly penalty at an annual rate of 14% on the tax that is still unpaid. One month late costs about 1.17% of the tax; a full year costs 14%. Paying part of the tax reduces the base for the following months.

For tax that fell due before 14 April 2026, the earlier schedule applied: 2% the day after the due date, a further 4% on the seventh day, then 1% a day from one month after the due date, capped at 300% of the tax. The calculator picks the regime from the due date you enter.

## How to reduce or avoid penalties

Pay what you owe even if the return is not ready: the late payment penalty runs on unpaid tax, not on the return. If you find an error in a past return, a [voluntary disclosure](https://www.countify.ae/blog/vat-return-filing-uae-deadlines) before the FTA contacts you carries lower penalties than one found in an audit. Instalment plans and penalty waiver requests can be made on EmaraTax.

## Legal basis

- Cabinet Decision No. 129 of 2025 on administrative penalties (from 14 April 2026) (https://tax.gov.ae/en/legislation.aspx)
- Cabinet Decision No. 49 of 2021 (earlier periods) (https://tax.gov.ae/en/legislation.aspx)

## Frequently asked questions

### What is the penalty for late VAT payment in the UAE?

For tax due from 14 April 2026: 14% a year of the unpaid tax, charged monthly. For earlier periods: 2%, then 4% on day 7, then 1% a day after one month, capped at 300%.

### What is the penalty for filing a VAT return late?

AED 1,000 for the first late return and AED 2,000 for each repeat within 24 months.

### Can the FTA waive VAT penalties?

Yes, in some cases. You can apply on EmaraTax for a waiver or an instalment plan, especially where you have a good compliance record or a genuine reason.

### Is the late payment penalty charged if I file on time but pay late?

Yes. The late payment penalty is separate from the late filing penalty; filing on time avoids only the second.