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Procedure of Filing VAT Returns in Dubai, UAE

UAE companies that generate an income of more than 375,000 dirhams per year must apply for VAT registration in UAE. Following VAT registration, entities can be requested to make some changes to the company's current information for VAT return filing. Within twenty days of the change's implementation, the Federal Tax Authority must be notified of these modifications. Thus, entities are advised to avail of the services of accredited tax agents in the UAE to stay compliant to VAT filing steps and procedures.

Obtaining the Federal Tax Authority’s Approval to Amend

The following procedure can be undertaken for amendments that don't require consent;

  • Go to the FTA's online VAT registration in UAE webpage.
  • Next, click the dashboard tab and look for your authorized VAT registration process.
  • To modify any details regarding the foregoing, click the "edit" icon;
  • Any alterations or additions to business operations.
  • The company's GCC operations
  • Modify or update the data on the customs registry.
  • Tap submit after rendering the necessary changes. The portfolio will then immediately update with the modifications.

The Following Procedure Should Be Followed for Amendments that Need the FTA's Authorization;

  • The very first stage in changing the specifics is to give written notice of the modifications to the FTA.
  • These specifications may be changed if the FTA confirms the planned reforms.
  • After getting confirmation, tap the "amendment" box to make variations in the segments listed below;
  • You may edit your company information
  • You may amend your company's bank information;
  • You may edit your VAT claim;
  • You can customize your disclosures;
  • You can amend your strategic partnerships.
  • You can edit your working relationships.
  • Only with permission can you make modifications to the actual or anticipated banking transactions.
  • Updates to retail and wholesale policies only after getting authorization
  • Modifying information pertaining to authorized signatories or communicating choices
  • Double-check all the information to make sure it is accurate after having modified it. Click "review and submit" once you have made sure that all the information you entered is correct and accurate.

No Direct Changes Are Allowed in Certain Fields

The areas that can't be changed are listed as follows;

  • The 'Exception from Value Added Tax registration' cannot be straightforwardly altered in the category called "About the VAT application."
  • The 'Notification language change' field in the Affirmation segment cannot be revised straight.
  • The company is unable to make changes to the Communication Priorities paragraph.

If a VAT-registered company fails to notify the FTA of modifications done, the company will be subject to a fine of 5000 dirhams for the first offense and 15000 dirhams for subsequent offenses. To avert the Federal Tax Authority’s fines, the entire company operations must be informed of the VAT enrollment procedure and the method to render changes in VAT registration, expert tax agents in UAE can effectively guide entities in this regard.

What Are the Most Frequent Mistakes Businesses Make When Submitting Their Vat Returns?

 Organizations might accurately track and submit the output and input VAT as well as the VAT managing cash flow, but they might forget to document and publish the zero-rated and income transactions.

  • The government explicitly states the timeframes for submitting the Tax invoices during the VAT application form by the company in the UAE. The businesses are responsible for submitting their Tax return on time or earlier. The act of lodging the VAT return cannot be missed or delayed in any way.
  • Businesses must make sure to use the appropriate values when calculating VAT. The company must perform the computations precisely; or else, it will incur significant fees, such as sanctions. When conducting the computations, the company must constantly be aware of the current VAT rates that are in effect.
  • The businesses might overlook deals for which the duty drawback process might apply and assume that the merchandise doesn't have to pay VAT.

Seek Expert Consultation from Top Tax Agents in the UAE

Entities can seek expert guidance from reputable tax agents in the UAE on different facets of taxation such as, VAT registration steps, cancellation of VAT registration, and information on how to amend VAT data. Our adept tax consultants address all tax queries, streamlined to the client’s specific needs throughout different tax procedures. Thus, contact us today and we shall be glad to assist you.

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.