A Voluntary Disclosure lets a taxable person notify the UAE Federal Tax Authority (FTA) of an error or omission in a previously submitted VAT return, tax assessment, or refund application. Capella's registered tax agents help you correct discrepancies through the VAT211 form, stay compliant, and mitigate penalties before they escalate.
A Voluntary Disclosure is a formal request submitted to the FTA to correct an error or omission in a previously filed VAT return, tax assessment, or refund application.
The VAT211 form enables taxpayers to repair these errors. Depending on the circumstances, a taxable person should or may notify the FTA of an error or omission, allowing them to set things right before the issue is detected during an audit.
At a glance
Corrects errors in a submitted VAT return or refund claim
Filed through the FTA's VAT211 form
A proactive way to fix discrepancies and stay compliant
Who Needs to File a Voluntary Disclosure?
Any taxable person who discovers a mistake in a previously submitted return, assessment, or refund application may need to disclose it to the FTA.
You underpaid or overpaid VAT due to a calculation or reporting error
Output or input tax was incorrectly recorded in a filed return
A refund application was based on incorrect figures
An error resulted in the payable tax differing from what was reported
When a Voluntary Disclosure Is Required
UAE VAT rules distinguish between errors based on their value, which determines whether disclosure is mandatory or optional.
Where an error results in a difference of more than AED 10,000 in the payable tax, a Voluntary Disclosure must be filed. For errors of AED 10,000 or less, the correction can generally be made in the next VAT return if there is one, otherwise a Voluntary Disclosure is required.
Error above AED 10,000 in payable tax: Voluntary Disclosure is mandatory
Error of AED 10,000 or less: correct in the next return where possible
Must be made within 20 business days of becoming aware of the error
Late or unaddressed errors can attract higher penalties
The Voluntary Disclosure Process
Capella manages the disclosure end to end, from reviewing your records to submitting the VAT211 form on the FTA portal.
Review your filed returns and identify the error and its impact
Quantify the corrected tax payable and any difference owed
Prepare a clear explanation and supporting evidence for the FTA
Submit the VAT211 form through the EmaraTax portal
Track the FTA's response and assist with any follow-up
Documents and Information Required
Accurate supporting records help the FTA process your disclosure quickly and reduce the risk of further queries.
Tax Registration Number (TRN) and FTA portal access
The original VAT return or refund application being corrected
Tax invoices, credit notes, and accounting records evidencing the error
A calculation showing the corrected figures and tax difference
A written explanation of the cause of the error
Why Capella
Why choose Capella
FTA-registered tax agents who manage the VAT211 filing on your behalf
Proactive disclosure that helps mitigate penalties and avoid audit exposure
Accurate error quantification and FTA-ready supporting documentation
Clear guidance on whether disclosure is mandatory or optional for your case
End-to-end handling on the EmaraTax portal with follow-up support
How Capella Files Your Voluntary Disclosure
From error spotted to FTA-accepted disclosure
01
Step 1
Error review & exposure check
We examine the VAT return(s) in question, quantify the tax difference, and confirm whether a voluntary disclosure (Form 211) is legally required before the FTA finds it.
02
Step 2
Reconstruct the correct position
Our FTA-registered agents rebuild the accurate figures from your invoices, ledgers and import records, and document the cause of the error for the FTA's reasoning letter.
03
Step 3
Prepare Form 211 & supporting pack
We draft the voluntary disclosure on the EmaraTax portal with a clear explanatory letter and full evidence so the FTA accepts it without queries.
04
Step 4
Submit within 20 business days
We file the disclosure and guide payment of the tax difference inside the deadline to avoid late-payment penalties stacking on top.
05
Step 5
Respond to FTA & close out
If the FTA raises clarifications, we handle the correspondence end-to-end until the disclosure is accepted and your account is clean.
Penalties
What non-compliance costs you
ViolationPenaltyHow Capella helps
Failing to disclose an error / under-declared VAT before the FTA finds itFixed AED 1,000 (first time) / AED 2,000 (repeat) plus a percentage penalty on the tax differenceFile a voluntary disclosure (Form 211) as soon as the error is found — disclosing before any FTA audit keeps the percentage penalty at the lowest tier.
Missing the 20-business-day voluntary disclosure windowDisclosure can be treated as an FTA-discovered error, pushing the percentage penalty to its highest tierCapella prepares and submits Form 211 within the 20-business-day deadline from the date you became aware of the error.
Error found by the FTA during a tax audit instead of voluntarily disclosedPenalty of up to 50% of the unpaid tax, plus monthly late-payment penalties from the original due dateDisclose proactively — voluntary disclosure before an audit notice sharply reduces the percentage applied to the tax difference.
Late payment of the tax difference after the disclosureLate-payment penalty: 2% of unpaid tax immediately, then 4% monthly on the outstanding amountWe coordinate payment of the tax difference inside the deadline so no late-payment penalty is triggered.
Late VAT registration (root cause of many disclosures)AED 10,000 fixed penaltyWe assess your taxable supplies against the AED 375,000 threshold and register on time, then disclose any returns missed in the interim.
Late or missed VAT return filingAED 1,000 first time, AED 2,000 for a repeat within 24 monthsCapella manages your filing calendar and corrects prior-period errors through voluntary disclosure where required.
Accounting, tax & audit under one roofRarely Yes Yes
Local UAE / FTA expertiseVaries Yes Yes
FTA Approved
An FTA-registered & approved tax agency in the UAE.
Tax Agent (TAN): 30000939 | TAAN: 20011987
Capella Tax Consultancy L.L.C is an FTA-approved Tax Agent in the UAE, helping businesses stay compliant with tax regulations. We provide VAT registration, VAT return filing, tax advisory, compliance reviews, and corporate tax services across all seven Emirates.
DubaiAbu DhabiSharjahAjmanAll UAE
FTA Registered Tax Agent
FAQ
Frequently asked questions
You must file a Voluntary Disclosure (Form 211) when an error in a submitted VAT return changes your payable tax by more than AED 10,000, or for non-monetary errors such as misreported emirate figures or misclassified supplies. Errors causing a difference of AED 10,000 or less can usually be corrected in your next VAT return instead.
Form 211 must be filed through the FTA's EmaraTax portal within 20 business days of the date you become aware of the error. Missing this window exposes you to additional administrative penalties.
A fixed penalty of AED 1,000 applies for a first disclosure and AED 2,000 for repeat disclosures, plus a percentage-based penalty on the underpaid tax. Under the framework effective 14 April 2026, this percentage penalty is calculated at 1% per month of the unpaid amount running from the original return's due date until the disclosure is filed.
Disclosing voluntarily before any FTA audit notice keeps your penalties at the lower level, whereas errors uncovered during an FTA audit attract significantly higher penalties on the full tax difference. Filing early is almost always far cheaper than waiting for the FTA to catch the mistake.
You typically need a letter explaining the error and its cause, your original and corrected VAT figures, and supporting evidence such as the relevant tax invoices, credit notes, or import documents. Keeping these records organised helps the FTA review and approve the disclosure without delay.
Testimonials
What clients say about Capella.
Capella has been a game-changer for our business. Their team is knowledgeable, responsive, and always ensures we stay compliant.
SME
SME ownerDubai
Professional, proactive, and always available when we need them. They handle our accounting, VAT, and corporate tax with complete accuracy.
TC
Trading companySharjah
Their insights go beyond compliance. Capella helps us understand our numbers better and make smarter financial decisions.
Speak with Capella's tax experts to review your VAT records and file an accurate Voluntary Disclosure that keeps you compliant and minimizes penalties.
