How to Amend VAT Return in UAE Without Penalties
If you are looking to Amend VAT Return UAE filings without triggering penalties or delays, you’re not alone. Many businesses in the UAE unintentionally make errors in their VAT returns — from incorrect input VAT claims to missing sales invoices or wrong tax calculations. The good news? The Federal Tax Authority (FTA) allows you to correct these mistakes legally and safely.
In this comprehensive guide, you’ll learn when and how to amend a VAT return, what the FTA expects, and how to avoid penalties completely.
Why Amending a VAT Return May Be Needed
Businesses may need to Amend VAT Return UAE submissions due to various reasons:
Incorrect output VAT charged
Wrong input VAT recovery
Missed invoices or credit notes
Errors in taxable vs. exempt sales
Reversal of wrongly claimed VAT
Misinterpretation of VAT rules
Human entry mistakes or system errors
The FTA provides a clean, compliant pathway to fix these mistakes — but timing and accuracy are critical.
Two Ways to Correct Your VAT Return in the UAE
The method depends on the size of the error.
1. Errors Below AED 10,000
If the mistake results in a difference less than AED 10,000, you can simply correct it in your next VAT return.
This is the fastest and simplest method.
2. Errors Above AED 10,000
If the error exceeds AED 10,000, you must file a VAT Voluntary Disclosure (VD) using Form 211.
This alerts the FTA that your previous filing had significant inaccuracies and needs correction.
When Should You File a Voluntary Disclosure?
You must submit a disclosure if:
You charged less VAT than required
You claimed more input VAT than allowed
You omitted taxable supplies
You filed incorrect values in Box 1–14 of VAT201
The error materially impacts tax due
Failing to disclose a major mistake can lead to hefty penalties, audits, and even suspension of your tax account.
How to Amend VAT Return in UAE Without Penalties
Follow these steps to ensure safe, compliant correction:
Step 1 — Identify the Error Clearly
Review your original VAT return to understand:
Which box contains the error
Whether the mistake affects VAT payable
Financial impact of the error
Correct diagnosis prevents incorrect disclosures.
Step 2 — Gather the Correct Evidence
Prepare documents that support your correction:
Sales invoices
Purchase invoices
Credit notes
Debit notes
Reconciliation sheets
Bank statements
The FTA may request supporting evidence.
Step 3 — Decide Whether Correction or Voluntary Disclosure Applies
Use the AED 10,000 rule:
Minor errors → Correct in next return
Major errors → File voluntary disclosure
Step 4 — Submit Through the FTA e-Services Portal
For a voluntary disclosure:
Log in to the FTA portal
Go to VAT → VAT Returns → Voluntary Disclosure (Form 211)
Enter corrected values
Provide reason for amendment
Upload supporting documents
Submit the form
Step 5 — Wait for FTA Approval
The FTA may:
Approve the disclosure
Request more documents
Seek clarifications
Respond quickly to avoid delays.
Step 6 — Prevent Future Errors
Avoid repeated amendments by:
Conducting monthly VAT reviews
Maintaining proper recordkeeping
Reconciling sales and purchases
Using validated accounting software
Seeking professional VAT support
Regular oversight significantly reduces compliance risk.
Common Mistakes That Trigger VAT Penalties
Avoid these errors when trying to Amend VAT Return UAE:
Filing voluntary disclosure late
Incorrect adjustment values
Frequent amendments
Missing supporting documentation
Wrong supply classification
Claiming ineligible input VAT
Not disclosing errors above AED 10,000
Penalties may include:
AED 1,000 to AED 5,000 administrative fines
20%–50% percentage-based penalties
Up to 1% daily late payment interest