Common VAT Return Filing Mistakes UAE Businesses Make

VAT filing errors are surprisingly common. Most aren’t intentional—they’re honest mistakes that happen because the rules are easy to misunderstand or because records are disorganized. The problem is that the tax authority doesn’t distinguish between careless errors and intentional fraud. Getting proper VAT return filing in the UAE done right the first time saves money and stress.

Missing or misfiled invoices

The most frequent error is missing invoices. A business files their VAT return but forgets an invoice they received, so they don’t claim the VAT recovery they’re entitled to. Other times invoices are misfiled—categorized as exempt when they should be standard-rated, or vice versa.

This happens because records aren’t organized. If you’re storing invoices in email, on your desk, and in filing cabinets scattered around your office, something will slip through. By the time you file, you’ve lost track of what you actually received.

The fix is simple: centralize your records. Use one folder or system for all supplier invoices. As soon as you receive an invoice, scan it and file it properly. Before you file your VAT return, do a complete review. Check your bank statements against your invoice list. Make sure everything is accounted for.

Zero-rated sales claimed incorrectly

Some businesses think zero-rated supplies work like exempt supplies. They don’t. If you make zero-rated sales—typically exports—you can still reclaim input VAT on your purchases. But you need documentation proving the supply was actually zero-rated.

Many businesses claim zero-rating without proper evidence. An export isn’t zero-rated just because you say it was. You need shipping documents, customs paperwork, or customer confirmation showing the goods left the UAE. Without this evidence, the FTA disallows your claim.

Incorrect VAT calculations

Math errors happen. You add up your sales wrong or miscalculate the VAT amount. The portal usually catches obvious errors, but some slip through if you’re manually entering figures.

Use a calculator or spreadsheet to double-check your math before submitting. The five seconds this takes prevents headaches later.

latefiling

Late filing and payment

Missing your filing deadline is costly. The FTA imposes late filing penalties starting at AED 100. If your return is more than 60 days late, penalties increase. Some businesses have paid over AED 1,000 in penalties because they forgot a filing deadline.

Set calendar reminders now. Your deadline for quarterly filing is 28 days after the quarter ends. Mark it down. If you’re close to the deadline and your records aren’t ready, file what you have. You can amend later if needed. Filing late with a penalty is worse than filing on time and amending.

Inconsistent entity information

Your return uses your TRN and business details. If these change—if you move locations or change your business structure—you need to update your registration with the tax authority at https://www.tax.gov.ae/ before filing your next return. Filing with outdated information creates mismatches.

Review your entity details on the EmaraTax portal before every return. Make sure your name, address, and TRN are current.

VAT paid on non-deductible expenses

Not all VAT-charged purchases can be recovered. Personal expenses, entertainment that doesn’t fall within specific rules, and certain vehicle costs don’t allow VAT recovery. Some businesses claim these anyway, not realizing the restriction.

Read the FTA rules about deductible input VAT. When you file, only claim VAT on purchases that genuinely qualify. The FTA reviews large claims, and questionable deductions trigger audits.

Getting it right moving forward

The solution to most VAT filing mistakes is preparation. Organize your records throughout the quarter. Review them before filing. Double-check your calculations. Meet your deadlines.

If you’re uncertain about anything—whether a sale is zero-rated, whether an expense qualifies for VAT recovery, or how to enter complex transactions—ask before you file. Getting advice upfront is cheaper than fixing mistakes later. skrooge.ai helps with proper VAT return filing in the UAE, ensuring your submissions are accurate and on time.

The goal is simple: submit accurate returns, on time, every time. That keeps you compliant and away from penalties.