Default in VAT payment in UAE results in penalty below are mentioned types of penalty depending upon case to case basis. 2% of the unpaid tax immediately levied once the payment of payable tax is late 4% is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid. 1% daily penalty charged on any amount that is still unpaid for one calendar month following the deadline for payment with a maximum ceiling of 300%