VAT Penalty Waiver in Dubai

You must submit the reconsideration request to the FTA within 40 business days from the date you were notified of the penalty decision. If the FTA rejects the reconsideration, you then have 40 business days to escalate to the Tax Disputes Resolution Committee (TDRC).

The FTA may waive or reduce penalties if you demonstrate reasonable cause (circumstances beyond your control), the violation was a first-time occurrence with no history of non-compliance, you made a voluntary disclosure before the FTA discovered the issue, or there were procedural errors in the FTA's assessment.

In some cases, yes. The FTA has discretion to fully waive penalties when there is strong evidence of reasonable cause. Partial reductions are more common. Success depends on the quality of your reconsideration request, the strength of supporting evidence, and the specific circumstances of your case.

Yes. The FTA accepts administrative penalty reconsideration requests within 40 business days of the penalty notification. Additionally, the UAE Cabinet has issued penalty redetermination decisions allowing existing penalties to be reduced or waived if conditions are met (e.g., paying outstanding tax). We assess eligibility and prepare submissions.

Late filing penalties are the most common — AED 1,000 for the first late filing, AED 2,000 for repeat offences within 24 months. Late registration (AED 10,000) is also frequent. Late payment penalties are percentage-based: 2% immediately, 4% after 7 days, and 1% daily thereafter up to 300%.

Submit a reconsideration request through EmaraTax within 40 business days of the penalty notification. Include a detailed explanation of why the penalty should be reconsidered, supporting evidence, and documentation of corrective actions taken. We prepare professional reconsideration requests that maximise the chance of a favourable decision.