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7 Steps to VAT Return Filing in UAE

What is Value Added Tax in the UAE?

Value Added Tax, sometimes known as VAT, is a type of tax that is assessed along the whole supply chain of a service or goods. The full tax is ultimately paid by the client. The rate for VAT in UAE is 5% which is collected by the government. UAE has a Federal Tax Authority as the legitimate entity to collect the VAT from businesses.

What is the Scope of the UAE Value Added Tax?

An overview of all the financial transactions during a specific tax period can be found in a tax return. This covers VAT paid or collected on each transaction, as well as exports, imports and exempted supplies. This form needs to be created using your invoices and submitted via the FTA e-portal.

What is the UAE Tax Period?

The 28th day of the month after the conclusion of the VAT return period is the deadline for submitting any VAT return filing, whether it be monthly or quarterly. For instance, the 28th of May would be the deadline for submitting a quarterly VAT return for the period that runs from February to April.

How to File a VAT Return?

By enabling VAT returns to be submitted electronically via the FTA platform, the UAE government has simplified the VAT return filing in UAE. VAT registrants have been urged by the FTA to confirm that any information they supply is accurate and error-free. Every service provided by the FTA is available online, enabling anybody to file VAT returns and other taxes whenever they choose.

In the UAE, there are several steps involved in filing VAT returns. To understand how to fill out the VAT return form on the FTA portal, it is wise to look into an example on how it is done. Here are some steps that may help you for VAT return filing in the UAE.

Read More : VAT Filing in the UAE : Everything You Need to Know

Steps for VAT Return Filing in UAE

Step 1 – Logon to FTA E-portal

The first thing that you must do is go to the Federal Tax Authority’s official website and logon to the e-Portal by entering your VAT account’s credentials (username and password). Once you have entered the credentials, you will be redirected to the dashboard of your VAT account representing all the details of your VAT filing. 

Step 2 – Select the VAT Tab

VAT return is denoted as VAT 201 on the FTA e-Portal. Once you have logged in, access the VAT 201 and click on the VAT refund from the dropdown options. After that select VAT 201 – New VAT Return to file VAT return on your business. 

Step 3 – Enter Details of Taxable Person

In this step, you will be asked to enter the required information such as Tax Registration Number, Taxable Person’s Name and Taxable Person’s Address. Once this information is entered, other details such as Tax Agent Name, TAAN, Agency name etc. will appear if an agent is doing the FTA VAT return filing on behalf of the Taxpayer.

Step 4 – Select the Tax Period

Details for this area will automatically be displayed for you. Included are the tax year end, the VAT return due date, the VAT return period reference number, the VAT return term for which you are filing, and the VAT return period. The fifth phase is the VAT on all other outputs and sales. All types of supplies will be needed, including standard, exempted, zero-rated supplies and supplies which are subject to the reverse charge rules, products imported into the UAE, and modifications made to those products. The sixth phase is the VAT on expenses and all other inputs. In the UAE, rate of VAT is 5%. The details of the expenses or sales on which the 5% VAT was paid must be entered here. 

Step 5 – Analyze Net Vat Due

This sum includes all taxes that were due, recouped, and paid within the specified period. Information on sales and other outputs will be used to calculate the tax that must be paid. The expenses and other input data will determine the amount of tax that may be reclaimed. The tax is calculated as the difference between the input and output VAT. If the output VAT is higher than the input VAT after filing the VAT return form, you can ask for a refund by completing the VAT Refund Form VAT 311.

Step 6 – Add Supporting Documents in Case of “profit Margin Scheme”

There is no connection between this part and your VAT return; it only pertains to those who employed the "Profit Margin Scheme." Choose "No" to continue to the next step if you haven't yet put the plan into action.

Step 7 – Declaration and Authorized Signatory

Utilizing the "Declaration and Authorized Signatory" section, you may submit the VAT refund. Before submitting your return, you must click the declaration box. The FTA will email you upon the submission of your return. You can manage all of your accounting demands with the help of a number of top suppliers of accounting software. They can help all businesses manage their operations smoothly and efficiently. The user-friendly software allows you to manage your business from any location.

Avail of Top-Notch Services of Approved VAT Registration Firms in UAE

Essentially, it is advisable for companies to avail of top services of approved VAT Registration Firms in the UAE to stay compliant with the regulations and standards of Value Added Tax. Noncompliance with the set VAT Laws accrues hefty fines on companies, thus it is vital for companies to avert any probable risk of incurring VAT penalties. VAT Registration Firm UAE is a reputable tax consultant in the UAE, we have a conglomerate of seasoned tax experts, legal consultants, and accounting specialists who work hand in glove with businesses to ensure effective tax filing and accounting tools. Thus, contact us today and we shall be happy to assist you. 

For more than 35 years, Farhat  & Co. has been one of the top audit firms in Dubai that deals with accounting. It continues to be one as we remain to be known even with the new tax regime that has found our country. For more information and consultation with regard to your needs in VAT accounting, you can book an appointment with us here.

Read More : Ways to Ensure Your VAT Returns are Audit-Proof

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.