How to File VAT Return in UAE : Complete Guide
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File a VAT Return in UAE

How to File a VAT Return in the UAE?

Are you a business owner in the UAE who needs to file Value Added Tax return? We’re here to help, in this article we will discuss how UAE businesses can accurately and seamlessly file VAT Returns

What is VAT Return Filing?

VAT return filing in UAE is a crucial process and it is mandatory for VAT-registered businesses. VAT-registered businesses need to submit their VAT returns to the Federal Tax Authority (FTA), and failure to comply sets imposition of penalties or fines. 

Scope of Registering for VAT 

One of the key criteria for VAT registration in UAE is the turnover threshold. VAT registration is mandatory for all businesses in UAE that have annual taxable supplies and imports exceeding AED 375,000 and voluntary VAT registration applies to those who have an annual taxable supply and import value above the AED 187,500 threshold. 

The VAT return filing process in UAE involves several stages, including calculating your VAT liability, completing VAT return forms and submitting them electronically to FTA via the e-Services portal, replying to any queries from FTA within 14 days of receiving the query, and keeping all applicable records. 

How to Register for VAT?

To register for VAT in UAE, you must submit a VAT registration application form as per the Federal Tax Authority regulations. You will need to provide necessary supporting documents such as a business license, trade name certificate, passport copies of directors/shareholders, etc. The entire process may take up to 5-10 working days after submitting the required documents. 

Once the VAT registration application is approved by FTA, the registered VAT payer will receive a VAT registration number, which must be mentioned in the VAT return filing. VAT return filing should be done periodically to ensure the business is VAT compliant. 

VAT returns should be filed online through the FTA portal or accredited VAT agents in UAE. It is important to submit VAT returns on time and make timely payments of VAT liabilities to avoid any penalties imposed by FTA. 

The VAT return filing process in UAE must be done correctly and on time, otherwise, you might face a penalty for non-filing of vat returns in UAE or fines from the Federal Tax Authority (FTA). Businesses must also ensure that all applicable records are kept up-to-date to avoid any complications with the VAT return filing process. 

Filing a Return for VAT

Filing VAT returns in the UAE is an obligation for businesses that fall under the cognizance of VAT. VAT return filing involves providing information such as VAT payable or receivable and other details related to one’s business transactions during a specified period. The VAT return must be filed within 14 days after the end of each VAT Return period which lasts for three months. 

Process of Filing VAT Return in UAE

To file VAT Returns in UAE, taxpayers have to register on the FED (Federal Tax Authority) portal using their Emirates ID and use it to access the VAT system, allowing them to submit their VAT returns. To make this easier, an online platform called “e-DIRECT” has also been set up, which provides VAT return filing features for taxpayers. 

Additionally, VAT payers can also opt for third-party VAT return filing services that are provided by various companies. Top tax agents in the UAE provide efficient VAT return filing services and offer assistance in creating VAT returns and submitting them to the regulatory authorities timely. 

To make VAT return filing easier, corporations must maintain accurate records of their sales and purchases as per UAE’s VAT regulations. It is also important to keep track of all VAT payments made or received during a specified period. Furthermore, businesses should be aware of any penalties they may incur if they fail to comply with the VAT regulations or file late VAT returns.

How to Apply for VAT Return?

For applying for the return of VAT in UAE, the person needs to use electronic media through the DFTA portal – eservices.tax.gov.ae. in this way, the person gets to apply for online VAT return services.

Here are some of the easy steps that are to be followed in order to apply for VAT return in UAE;

  1. Visit the portal

the first step that needs to be followed by the person is visiting the online portal of FTA at tax.gov.ae. we already know the reason for using the online portal as there are no offline ways of approaching the FTA for the sake of VAT return filing in Dubai. That is why there is no other way rather than using the online portals for the application.

  1. Click the return filing

You will see a lot of options after visiting the online portal. After visiting the online portal, you will have to click on the option of return filing.  You will find this option basically under the e-services section.

  1. Log in FTA

Now the third step would be logging in to the service portal of FTA. There is nothing complex about logging in. All you need is to log in using your unique TIN and password. This will help you in logging in.

  1. Fill the form

After logging in, fill in your VAT form by using all the details that you are asked about. usually, you will be asked about your business details, transactions, tax liability, penalties (if any), etc. The sales and all other outputs moreover as on expenses and Upload the required documents, bills, etc. For the sake of filling the other inputs, you must fill them. all as follows:

  1. The net amounts excluding VAT
  2. The VAT amount

Filling the form is a very important thing that should not be neglected at all. people should pay a lot of attention while filling out their forms and they should b accurate without any mistake in it.

  1. Submit the form

Make sure that you review your form accurately before submitting it as there should be no mistakes in it at all. do not leave any space without filling it.

After you think that you are satisfied with your form, you can submit it.

As we all know that there are no chances of mistakes in such application form,s so we need to be extra careful about such things. This is the only way we can reduce the risk of any mistakes. After all, this, click on the submit button to submit your application form

  1. Last payment

You will see another tab named as my payments. You will have to pay your last payment through that option. another thing that you must pay attention to is the last date of the filing of the application. This is because there are chances that you submit your application and then come to know that the last date for the filing of the application has passed. So, it is always better to be on the safe side.

Avail the Services of Top Tax Agents in the UAE

 Filing your VAT Returns in the UAE is essential to keep track of your VAT payments and to ensure compliance with the VAT regulations. With the assistance of a top tax agent in Dubai, filing VAT returns can be a seamless process. We provide comprehensive services that will take care of everything from registering your company for VAT to submitting your returns on time every month. Contact us today to get started. 

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions. Read more