UAE VAT Voluntary Disclosure Filing Services in the UAE

What is VAT Voluntary Disclosure in the UAE?

VAT Voluntary Disclosure is a formal procedure that allows a registered taxable person to correct errors or omissions in previously submitted VAT returns, VAT refund applications, or tax assessments.

According to UAE VAT Law, a taxable person must submit a Voluntary Disclosure if:

• There is an error in a previously filed VAT return.

• The error resulted in underreporting or overreporting of tax.

• The error exceeds the threshold specified by the FTA.

• The error affects payable tax or refundable tax amounts.

• A refund application contained incorrect information.

• If the error amount exceeds AED 10,000, a Voluntary Disclosure must generally be submitted through the FTA portal.

• Even if the error is below this threshold, correction may still be required through adjustment in the subsequent return. Failure to submit a voluntary disclosure when required may result in significant administrative penalties.

Why VAT Voluntary Disclosure is Important

Correcting VAT errors voluntarily demonstrates compliance and good faith. The FTA expects businesses to maintain accurate records and proactively correct mistakes.

Timely voluntary disclosure helps you:

• Avoid heavier penalties for non-compliance

• Reduce exposure during tax audits

• Prevent compounding fines Maintain accurate tax records Protect your company’s credibility

Avoid legal complications

• Ignoring errors can lead to administrative penalties that may significantly exceed the original VAT difference.

• At Gupta Accountants, we ensure your voluntary disclosure is completed correctly the first time, minimizing risk and stress.

Common Reasons for VAT Voluntary Disclosure

Many businesses in the UAE require voluntary disclosure due to common VAT-related mistakes. These include:

Misclassification of Supplies

• Incorrect treatment of exports

• Errors in reverse charge mechanism reporting

• Incorrect designation of zero-rated or exempt supplies

Incorrect Input VAT Claims Claiming

• VAT on ineligible expenses

• Claiming VAT without proper tax invoices

• Overstated or understated input VAT

Accounting or System Errors

• ERP configuration mistakes

• Manual data entry errors Incorrect VAT mapping

Late Discovery of Transactions

• Unrecorded invoices

• Post-closing adjustments

• Missed credit notes

UAE VAT Voluntary Disclosure Process

Submitting a voluntary disclosure is not just about correcting numbers — it involves legal, financial, and compliance considerations.

Here’s how the process works:

• Error Identification

• We conduct a detailed review of your VAT returns and accounting records to identify the exact nature and extent of the error.

Impact Assessment

We calculate:

• Tax difference amount

• Penalty exposure

• Applicable administrative fines

• Net payable or refundable amount

Preparation of Voluntary Disclosure Form (VAT211)

• We prepare the VAT211 Voluntary Disclosure Form via the FTA portal with accurate and compliant information.

Documentation Review

We review supporting documents including:

• Tax invoices

• Credit notes

• Accounting records

• Contracts

• Import/export documentation (if applicable)

Penalty Calculation & Payment Assistance

1. We advise you on penalties and assist with timely payment to avoid further fines.

Submission Through FTA Portal

• We submit the disclosure electronically and coordinate with the FTA if additional clarifications are required.

Preparation of Voluntary Disclosure Form (VAT211)

Submission Through FTA Portal

• We submit the disclosure electronically and coordinate with the FTA if additional clarifications are required.

We prepare the VAT211 Voluntary Disclosure Form via the FTA portal with accurate and compliant information.

Penalty Calculation & Payment Assistance

• We advise you on penalties and assist with timely payment to avoid further fines.

Penalties Related to VAT Errors in the UAE

Administrative penalties may apply for:

• Failure to submit voluntary disclosure when required

• Underreporting payable tax

• Overclaiming VAT refunds Late payment of tax

Penalties typically include:

• Fixed administrative penalty

• Percentage-based penalty on the tax difference

• Monthly penalty on unpaid tax

• The earlier you correct the error, the lower the financial impact. Our consultants help you evaluate penalty exposure before submission so you can make informed decisions.

Why Choose Gupta Accountants for VAT Voluntary Disclosure Filing?

At Gupta Accountants, we specialize in UAE VAT compliance and advisory services. Our approach is strategic, confidential, and compliance-driven.

FTA-Compliant Expertise

• Our VAT specialists are well-versed in UAE VAT Law, Executive Regulations, and FTA procedures.

Accurate Error Assessment

• We don’t just file forms — we thoroughly review your VAT position to prevent repeat issues.

Penalty Minimization Strategy

• We assess penalty risks and advise on mitigation approaches.

Confidential & Professional Handling

• Sensitive financial corrections are managed discreetly and professionally.

End-to-End Support

• From error identification to FTA submission and follow-up, we handle the entire process.

Audit Preparedness

1. We ensure that your voluntary disclosure strengthens your audit readiness.

Who Needs VAT Voluntary Disclosure Services?

Our services are ideal for:

• SMEs and large corporations

• Free zone companies

• Mainland businesses

• Import/export companies

• E-commerce businesses

• Real estate companies

• Construction companies

• Professional service providers

• Healthcare and education entities

• If your business is VAT-registered in the UAE and you suspect errors in previous filings, you should consult a VAT expert immediately.

Risks of Not Filing Voluntary Disclosure

Many businesses delay filing voluntary disclosure due to fear of penalties. However, failing to disclose can result in:

• Increased administrative penalties

• Tax audits by the FTA

• Legal notices

• Business reputation damage

• Accumulated interest and fines

• Proactive correction demonstrates compliance and can reduce long-term financial exposure.

How We Help Reduce Future VAT Errors

Beyond filing voluntary disclosures, we help you strengthen your VAT systems.

Our additional support includes:

• VAT health checks

• Internal VAT audit

• VAT return review

• Accounting system VAT mapping review

• Staff VAT training

• ERP VAT configuration advisory

• Ongoing VAT compliance services

• Our goal is not only to correct the past but to protect your future compliance.

Documents Required for VAT Voluntary Disclosure

To proceed efficiently, we typically require:

• Detailed VAT computation sheets

• Sales and purchase ledgers

• Tax invoices and credit notes

• Bank statements (if relevant)

• Customs documentation (if applicable) FTA login credentials (for authorized filing)

Frequently Asked Questions (FAQs)

What is the time limit for filing voluntary disclosure?

• A voluntary disclosure must be submitted within 20 business days from the date you become aware of the error, if it exceeds the threshold.

Can I correct errors in the next VAT return instead?

• If the error is below AED 10,000 and does not affect payable tax significantly, adjustments may be allowed in the subsequent return. However, professional review is recommended.

Will filing voluntary disclosure trigger an audit?

• Not necessarily. Voluntary disclosure demonstrates compliance and transparency. However, proper documentation must support the correction.

Can penalties be reduced?

• While penalties are governed by UAE tax law, timely disclosure reduces the risk of compounded fines.

Is voluntary disclosure mandatory?

• Yes, if the error meets the criteria specified under UAE VAT law.

Our VAT Advisory Approach

At Gupta Accountants, we follow a structured advisory methodology:

Initial Consultation – Understand your VAT issue

Detailed VAT Review – Assess compliance gaps

Risk & Penalty Analysis – Evaluate financial exposure

Strategic Correction Plan – Prepare compliant disclosure

FTA Submission & Follow-Up – Manage communication

Compliance Strengthening – Prevent recurrence

Industries We Serve Across the UAE

We assist clients across:

• Dubai

• Abu Dhabi

• Sharjah

• Ajman Ras

• Al Khaimah

• Fujairah

• Umm Al Quwain

• Whether you operate in a mainland or free zone jurisdiction, our VAT consultants ensure compliance with UAE tax regulations.

Protect Your Business with Professional VAT Support

VAT compliance is not just a legal requirement — it is essential for business sustainability in the UAE’s regulated tax environment. Mistakes can happen, but how you correct them makes all the difference.

• Timely and accurate voluntary disclosure:

• Demonstrates responsible governance

• Protects your business from severe penalties

• Strengthens your financial reporting

• Builds trust with regulatory authorities

• At Gupta Accountants, we combine technical expertise with practical experience to deliver reliable VAT voluntary disclosure solutions.

Contact Gupta Accountants Today

• If you have identified an error in your VAT return or are unsure whether voluntary disclosure is required, do not delay.

• Our VAT experts are ready to assess your situation confidentially and guide you toward full compliance with the Federal Tax Authority.

• Schedule a consultation today Get expert VAT advice Serving businesses across the UAE Gupta Accountants – Your Trusted UAE VAT Compliance Partner