What changed
Cabinet Decision No. 129 of 2025, in force from 14 April 2026, revised the administrative penalties for VAT and excise to align them with corporate tax. Late payment is now charged as interest at 14% a year on the amount outstanding, and some first-time errors carry lower penalties than before.
The penalties you are most likely to meet
- Registering late
- Filing a return late
- Paying late
- Errors in a filed return found by the FTA before you disclose them
- Not keeping the required records
How to stay clear
- Register as soon as you pass the threshold
- File and pay by the 28th day after each period — earlier is better
- Correct errors with a voluntary disclosure before the FTA contacts you
- Keep tax invoices and import documents for every claim
- Reconcile each return to your ledger
If a penalty arrives
You can ask the FTA to reconsider within the time limit in the tax procedures law. A clear, evidenced request — in Arabic — has the best chance. We tell you honestly whether there are grounds first.
