What is VAT Return?
A VAT return contains a summary of the number of supplies, exports, and imports of the taxable person that were carried out during the tax period. Along with this, details of VAT liability are also included. It is required to be submitted to the Federal Tax Authority (FTA). After completing all the necessary return requirements, this process can be done on the FTA’s online portal.
VAT Registration in UAE:
Businesses with imports and supplies exceeding AED 375,000 annually must register to VAT. It is optional for those who exceed AED 187,500 on annual basis.
VAT Consultancy Firm in UAE:
AKA provides VAT services. These include VAT Advisory, VAT Implementation, and VAT Return Filing. It comprises a team of experts that have expertise on both local and international issues and are ready to assist you and your business. AKA helps to identify and reduce tax risks, meet compliance obligations, implement tax strategies supplementing the business’ operational objectives, manage tax accounting and reporting issues, and design best tax practices.
Calculation of VAT:
A tax return can be filed when a difference between paid output and input tax exists. In case if the output tax is more than the input tax, the difference must be paid to the FTA. However, if the input tax is higher, it can be used to cover any other payments owed to the FTA. For setting up a VAT return, the following information shall be reported:
- Supplies subject to standard or 0% VAT rate or exempted from VAT
- Provision of supplies via the reverse charge mechanism
- Imported goods to the UAE and declared to the customs
- Changes to items brought into the UAE and declared to customs
- Refunds generated for tourists via the Tax Refunds for Tourists Scheme
A nil VAT return is required to be submitted if no transactions are made within the tax period. Regular VAT filing must be carried out. This is to be done during the 28 days after the cessation of the tax period. However, it depends on every business. Failing to do this can be subject to penalties and fines. The initial delay will cause AED 1000 fine while each subsequent delay can cause a fine of AED 2000.
The procedure of VAT Filing in UAE:
The process of VAT filing can be done on the online portal of the Federal Tax Authority (FTA). Below is a step-wise guide to VAT filing.
- Create an account with the Federal Tax Authority:
Every VAT-registered business must make an account with FTA. It is mandatory to begin the filing process. It is convenient to hire a tax agency in the UAE to ensure the creation of an account and the correct provision of information. AKA management consultancy provides VAT Return Filing services to numerous enterprises.
- Provision of details:
The next step is providing the details of the taxable person. Our team of experts assists you with this processing and thoroughly fills in the required details on your behalf. These details include:
- The business name, address, and tax registration number (TRN).
- VAT return period.
- Information on VAT sales and expenses carried out in a period.
- Zero-rated VAT supplies, VAT-exempted supplies, and 5% VAT rate supplies are to be mentioned.
- Net VAT due.
- Other requirements.
Lastly, a declaration is submitted to verify the accuracy of the information provided to the Federal Tax Authority.
VAT-registered companies tend to grow more as large enterprises trade with such businesses. All this contributes to a good reputation and confirms the legal security of your business.
Certain businesses are exempted from VAT. Also, the tourist’s refund scheme offers a refund to tourists if they purchase goods from a VAT-registered store.
Businesses must provide 5 years of documentation in order to register for VAT. The most crucial aspect of registering for VAT is keeping the books in order. The business owner is held answerable for any transaction made. It might have a negative impact on your business; therefore it is better to use a reputable company that can assist you with all of these processes together.
Why AKA Management Consultancy:
The process of VAT filing is delicate and needs to be monitored carefully. Wrong or incomplete information can result in severe fines and penalties. To avoid this, AKA management consultancy is the best VAT consultant in Dubai ready to provide VAT Filing for your business. We ensure that you do not have to deal with any fines. We are VAT specialists who carry out the entire process smoothly without causing any inconvenience. Besides, we also provide VAT advisory and VAT implementation.
AKA management consultancy can carry out your every process efficiently. Our team can make VAT filing a less tiring process for you as we have been working with FTA and VAT-related services for a long time. AKA skilled professionals provide hassle-free and quick services related to all your business processes.