UAE VAT Penalty Calculator Free

Choose the type of default and enter the amounts. This gives a planning estimate of the administrative penalty; the Federal Tax Authority's assessment is the figure that counts.

⚠️ Penalty details

Fill in the fields — results update live.

Editable: confirm the rate for your tax period.

📈 Result

Updates live as you type.

Result

Administrative penaltyAED 10,000.00
NoteVAT due while unregistered is extra

The three VAT penalties most businesses meet

Late registration is a fixed AED 10,000 administrative penalty. Late filing of a VAT return is AED 1,000 for the first default and AED 2,000 for a repeat within 24 months. Late payment is charged on the unpaid tax. Published guidance indicates a single annual rate of 14%, calculated monthly on the outstanding balance, applies to periods assessed on or after 14 April 2026, replacing the earlier 2% plus 4% structure. The rate is editable here because the law has changed recently and different periods can follow different rules.

Always check the current rules

Penalties are set by Cabinet Decisions and FTA guidance, and they have been amended. Treat this tool as an estimate and confirm the exact penalty for your period on the Federal Tax Authority website or with a tax adviser before paying or disputing anything.

FAQ

Frequently asked questions

What is the penalty for late VAT registration in the UAE?

A fixed administrative penalty of AED 10,000 applies when a business that must register for VAT does not do so on time. VAT due on supplies made while unregistered is a separate liability.

What is the penalty for filing a VAT return late?

AED 1,000 for the first late return and AED 2,000 for a repeat within 24 months, whether or not tax is owed.

How is the late payment penalty calculated?

On the unpaid tax. This tool uses an annual rate, default 14%, applied monthly to the outstanding balance. Check which rate applies to your tax period.

Can penalties be reduced?

The FTA has run penalty waiver and reconsideration processes. Availability and deadlines change, so check the FTA site or ask an adviser.

Never miss a VAT deadline

Pyalm Books tracks input and output VAT so your return is ready before the due date. Pyalm Books is free while it is in beta, so you can move this calculation into real books at no cost.

Try Pyalm Books free

Need a tool like this built around your own workflow? Custom software · AI automation