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.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
- Late payment penalty
- AED 700.00
- Late filing penalty
- AED 1,000.00
- Total penalties
- AED 1,700.00
- Months late (started)
- 3
Due on or after 14 April 2026, so the monthly 14%-a-year late payment penalty applies (Cabinet Decision No. 129 of 2025).
Confirm the final figure in your EmaraTax account; the FTA may also waive penalties under its instalment and waiver programmes.
Results are estimates for general information, not tailored advice.
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 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)
- Cabinet Decision No. 49 of 2021 (earlier periods)
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
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.
VAT registration and returns
Our FTA registered accountants register you, file every return on time and fix errors before the FTA finds them, for a fixed monthly fee.