FTA penalties: common mistakes and how waivers work
Most FTA penalties come from a handful of avoidable mistakes. Here's what to watch for and what to do if you've been fined.
- Late registration and late filing are the most common penalties.
- Some penalties can be waived or reduced through a formal request.
- Fixing the cause matters as much as the waiver.
The penalties we see most often
- Registering late for VAT or Corporate Tax
- Filing a return after the deadline
- Paying tax late
- Errors in a return that aren't corrected with a voluntary disclosure
- Not keeping records for the required period
How to avoid them
Track your rolling 12-month turnover for VAT, put every return deadline in a calendar the day your tax period ends, and reconcile your books before each return so the figures are right first time.
Can a penalty be waived?
In some cases, yes. The FTA lets taxpayers submit a reconsideration or waiver request, and it has also announced specific waiver initiatives. A good request explains what happened, shows the reason was reasonable and demonstrates that the business is now compliant.
Time limits apply to these requests, so act quickly once you receive a penalty notice.
What we do
We review the penalty, check whether a waiver or reconsideration is possible, prepare the request with supporting documents and fix the underlying issue so it doesn't happen again.
Our penalty waiver help cover everything in this guide, from registration to filing.
This guide is general information about UAE tax rules as of 29 October 2026, not tax advice for your business. Rules and FTA practice change; speak to an adviser before acting.