File vat return in UAE
File vat return is mandatory for all those who are registered for VAT, irrespective of the type of sales, purchases, tax, VAT registration, etc. AHG helps individuals and businesses to File vat return in UAE in addition to providing various other VAT services. Rendering the best guidance and assistance for your VAT Return in accordance with the UAE VAT law, CDA offers error-free VAT Return filing with proper maintenance of accounting documents related to each tax filing.
VAT Filing in UAE
VAT Return filing is the official tax report a registered business has to submit to the Federal Tax Authority before the due date. It is to be done by the taxable Person at regular intervals in compliance with his/her tax period. The VAT Return Filing Form records the details of the output tax due and the input tax to be recovered and some other information essential in the format. VAT return filing is not just proof of your business existence but can safeguard your business providing legal assurance and advantages in the stage of tax payments, avoiding financial loss. AHG offers VAT return filing services in UAE delivering outstanding VAT services to help you grow your business.
Tax Period for VAT Return Filing as per FTA
- VAT Return Filing in UAE is to be done by no later than the 28th day of the month following the Tax period or by another date if demanded by the FTA.
- If any payment is due, it must be received by the FTA by the same deadline.
- If any payment is due, it should also be paid by the same deadline.
- If the due date comes on a weekend or a national holiday, the deadline is extended to the next business day.
- The standard Tax period for a Taxable Person is a period of three calendar months.
- The FTA may assign different tax Periods for a certain group of Taxable Persons.
- In certain cases, the tax period may be fixed on a monthly basis.
- The request for an extension of the tax filing period may be accepted by the FTA at its discretion.
Things to be taken care while filing your VAT return
When you do the VAT Return filing in UAE, your details like your name, your address, TRN, current VAT Return Period, Tax year-end, VAT return period reference number, VAT Return submission due date will be generated automatically.
At the same time, the following things are to be noted down: –
- The payable amount must be in UAE Dirhams (AED).
- The payable amounts should be rounded off.
- Fill all the mandatory fields
- If there is no amount to be stated, enter ‘0’(Zero)
- Provide details of taxable supplies as emirate wise
Liability of VAT
The liability of VAT is the difference between the output tax payable (VAT charged on supplies of goods and services) for a given tax period and the input tax (VAT incurred on purchases) recoverable for the same tax period.
Where the output tax exceeds the input tax amount, the difference must be paid to FTA. Where the input tax exceeds the output tax, a taxable person will have the excess input tax recovered; he will be entitled to set this off against subsequent payment due to FTA.
How to file VAT return?
You must file for tax return electronically through the FTA portal: eservices.tax.gov.ae. Before filing the VAT return form on the portal, make sure you have met all tax returns requirements.
When are businesses required to file VAT return?
Taxable businesses must file VAT returns with FTA on a regular basis and usually within 28 days of the end of the ‘tax period’ as defined for each type of business. A ‘tax period’ is a specific period of time for which the payable tax shall be calculated and paid. The standard tax period is:
- quarterly for businesses with an annual turnover below AED150 million
- monthly for businesses with an annual turnover of AED150 million or more.
The FTA may, at its choice, assign a different tax period for certain type of businesses. Failure to file a tax return within the specified time frame will make the violator liable for fines as per the provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE (PDF, 1 MB).
FILING RETURNS IN 4 STEPS
1- Login to the FTA eServices portal and go to the ‘VAT’ tab whereby you will be able to access your VAT Returns. From this screen you should click on the option “VAT 201 – New VAT Return”
2- Complete the Form: Fill in the following details: • The sales and all other outputs as well as expenses and all other inputs as follows: 1. The net amounts excluding VAT. 2. The VAT amount. • The system will then calculate the payable or refundable tax.
3- Submit the Form: carefully review all of the information entered on the form after completing all mandatory fields and confirming the declaration. Once you confirm that all of the information included in the VAT Return is correct, click on the Submit button.
4- Settle the payable VAT (if applicable) through the “My Payments” tab. Ensure payment deadlines are met. For further information, please visit the Federal Tax Authority website www.tax.gov.ae
Since AHG ’s an Approved Tax Agency in the FTA of UAE and one of the leading Tax Agencies who is specialized in the Excise Tax, AHG’s Services range from Tax Registration, Tax Filing, Tax consultancy, Warehouse Keepers and Designated Zones Registration, Stock and Duty Calculation, Advice on Stockpilers, Tax Agent, Digital Tax Stamps Filing Disputes, Representation in front of the FTA of UAE