VAT Return Filing

A VAT return summarizes the number of supplies and purchases of the taxable person that were made within the tax period. This also includes the details of the VAT liability. This report is submitted to the Federal Tax Authority (FTA). It can be done through the FTA’s online portal with all the mandatory return requirements.

Registration for VAT in UAE:

Registration for VAT is mandatory for businesses with supplies and imports of more than AED 375,000 annually. Also, businesses with supplies greater than AED 187,500 per year can voluntarily register for VAT.

How to calculate VAT:

A business should file the tax return if the difference between the output and input tax can be recovered. If the output tax is more than the input tax, the difference must be paid to the FTA. In case the input tax is more than the output tax, then it can be used to cover payments due to the FTA. The following information is required to report VAT return in case of purchases and other features:

  • Any supply that is liable to 0% or 5% VAT rate or excluded from VAT.
  • Supplies obtained through a reverse charge mechanism.
  • Imported goods within UAE, declared through customs.
  • Changes in imported goods to UAE that have been declared through customs.
  • Tax Refunds for Tourists Scheme offering refunds to tourists.

A nil VAT return must be submitted before the due date if no business transactions are made during the tax period. Businesses must file a VAT return after 28 days of termination of the tax period. However, it varies on the type of business. The businesses not complying with this are subject to fines and penalties. Delaying it for the first time can cause AED 1000 fine and every delay can cause AED 2000 fine.

Process of VAT Return Filing in UAE:

Federal Tax Authority (FTA) provides an online portal for VAT Return Filing. You need to fill in the following details in the VAT 201 form:

  • Details of the taxable person
  • VAT return period
  • VAT on sales and other related outputs
  • VAT on expenses and other related purchases
  • Net VAT due
  • Any other requirements necessary to be provided
  • Declaration and authorized signature

Large enterprises prefer to partner with VAT-registered businesses. It confirms the legal assurance of your business. Certain areas and businesses are exempted from VAT. Also, tourists get a refund as per the tourist refund scheme only from VAT-registered stores.

Businesses must present evidence of all the relevant documents for the last 5 years for VAT registration. Proper maintenance of accounts is an important requisite to register for VAT. Businesses are held accountable for each transaction conducted. To avoid negative effects on your business, it is prudent to hire a reputable company that assists with all the processes.

Hire Us!

VAT filing is a critical process. Inadequate information can lead to severe consequences. AKA Management Consultancy assists your business in the VAT filing process. Our team has VAT experts that facilitate thoroughly with the procedure.

With our efficient team, we have been working with the FTA and enterprises for many years. We carry out the VAT filling process meticulously and ensure that you do not have to face any trouble.

    Get a Consultation

    Contact us at the office or submit a inquiry online.