Introduction: Correction of Errors or Omissions in Tax Returns
Correction of errors or omissions in tax returns is now a serious duty for businesses in the UAE. The Federal Tax Authority (FTA) issued Decision No. 8 of 2024, effective from January 1, 2025. This decision gives clear steps for correcting VAT return mistakes.
Many businesses have updated their VAT returns already. Some did it under audit, and others did it voluntarily. Now the process is strict, and rules guide every correction. Mubarak Al Ketbi (MAK) Auditing explains how to fix mistakes, avoid penalties, and remain fully compliant.
What Are VAT Returns?
VAT returns are official reports submitted to the FTA. They show tax collected on sales and tax paid on purchases during a set period.
If errors appear in VAT returns, problems may follow:
- Regulatory review may begin.
- Penalties may apply.
- Reputation may suffer.
Failure to disclose errors within 20 days after detection makes the business non-compliant. Even small mistakes need voluntary disclosure.
A Stricter Approach to VAT Returns
In the past, mistakes under AED 10,000 were adjusted later without notice. But now rules changed.
- Even non-financial mistakes must be disclosed.
- Errors like reporting sales under the wrong Emirate need correction.
- Misstating zero-rated or exempt supplies must be fixed.
This stricter approach makes compliance more demanding. Companies must act quickly and responsibly.
Reporting an Error That Doesn’t Change Due Tax
FTA guidelines require disclosure even when errors don’t affect tax due. Businesses must file voluntary disclosure if they:
- Report standard-rated products in the wrong Emirate.
- Overstate or understate exempt supplies.
- Overstate or understate zero-rated supplies.
Corrections must be made through the EmaraTax portal within 20 business days after discovering the error.
How and When to Make the Correction
The process for correction is clear:
- Identify the error.
- Log in to the EmaraTax portal.
- Locate the tax return with errors.
- File voluntary disclosure.
The deadline is 20 days from the date of awareness, not the date the error occurred. That means businesses must stay alert and act fast.
Keep Your Records in Order
FTA requires businesses to keep records for five years. Companies must hold:
- Tax invoices.
- Supply breakdown by Emirate.
- Contracts and agreements.
- Books of prime entry.
Without proper records, disclosure may be rejected, and penalties may follow.
Proactive Compliance and Internal Review
Many UAE firms now use quarterly reviews instead of waiting until year-end. This helps to detect mistakes early.
Proactive compliance includes:
- Regular VAT checks.
- Internal audits.
- Early detection of gaps.
- Quick correction before penalties apply.
Mubarak Al Ketbi (MAK) Auditing guides firms in reviewing VAT reports to ensure compliance and avoid legal risks.
Why Professional Guidance Matters
Errors in VAT filing are stressful, and rules are strict. Professional tax consultants make the process smoother.
- They guide voluntary disclosure.
- They prepare records correctly.
- They prevent non-compliance.
In UAE, penalties for mistakes are high. Expert help reduces risks and builds confidence with regulators.
What Can Help You – Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing provides expert VAT and tax consulting in Dubai and across UAE. Their team ensures compliance with FTA rules, guides voluntary disclosure, and helps maintain accurate records. With their help, your business can avoid penalties and stay compliant.
👉 For more information, visit or contact us:
- 📍 Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- 📞 +971 50 276 2132 (Call/WhatsApp)
And remember, “a stitch in time saves nine”. Correcting errors early saves both money and reputation.
