From January 1, 2025, the Federal Tax Authority (FTA) has introduced a simpler way for businesses to correct certain VAT return mistakes through an updated Voluntary Disclosure process.
Under the new rules, if the error doesn’t affect the amount of VAT you owe or can claim back, you no longer need to go through the full VD procedure. Instead, you can simply make the correction in your next VAT return.
What Kind of Errors Can Be Fixed This Way?
- Listing the wrong emirate for a supply.
- Marking a transaction as zero-rated or exempt when it should have been taxable (or vice versa), as long as the VAT amount stays the same.
- Incorrect non-financial details, like descriptions or statistical data, that don’t impact VAT payable or refundable.
Why This Change Matters
- Less paperwork – small errors can be fixed quickly without formal submissions.
- Faster compliance – you don’t have to wait for an FTA review.
- Lower risk of penalties – since the tax amount isn’t affected.
A Quick Tip:
Even with this flexibility, it’s worth double-checking your VAT returns before submission, and keeping a clear record of any corrections you make in the next filing. This way, you’re ready if the FTA asks for clarification later.
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