Definition

A Voluntary Disclosure is a form submitted by UAE taxpayers to the Federal Tax Authority (FTA) when they discover an error or omission in a previously filed VAT return, excise tax return, or refund application. It allows businesses to correct mistakes and remain compliant with UAE tax laws.

Key points

• Used to correct underreported or overreported tax.
• Must be filed within 20 business days of identifying an error.
• Submitted electronically through the EmaraTax portal.
• May result in penalties, but fines are generally lower than if the error is discovered during an audit.
• Applies to VAT, Excise Tax, and Corporate Tax (once filing is active).

Practical example

A trading company realizes it underreported AED 100,000 in sales in its last VAT return. It files a voluntary disclosure via EmaraTax to correct the output VAT due and avoid heavier audit penalties.

Why it matters

Submitting voluntary disclosures promptly demonstrates good faith, reduces risk of higher fines, and ensures ongoing compliance with UAE tax laws.