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VAT return filing is a periodic process. As per UAE VAT Law, every VAT registered business shall submit a Tax return to Federal Tax Authority / FTA
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VAT return filing in UAE VAT return filing in UAE VAT return filing in UAE is a periodic process. As per UAE VAT Law, every VAT registered business shall submit a VAT return to Federal Tax Authority / FTA, summarizing the value of the supplies and purchases made during the tax period and its total VAT liability.
Tax period for VAT filing in UAE Tax period for VAT filing in UAE A taxable business is required to file VAT return with FTA regularly within 28 days of the end of the tax period as prescribed for each type of business. A tax period is a specified period for which tax payable shall be calculated and paid. The standard tax period, as per UAEVAT Law, dependson the annual turnover of a business. Businesses with a turnover below AED 150 million shall file a quarterly VAT return Businesses with a turnover exceeding AED 150 million shall file a monthly VAT return
How to file VAT Return in UAE How to file VAT Return in UAE VAT VAT return return is is the the document document prepared prepared and and submitted submitted by by the the taxable taxable person person at at regular regular intervals intervals providing providing information information as as to to input input tax tax recoverable, recoverable, output output tax tax due, due, and and any any other other information information that that the the taxable taxable person person is is required requiredto toprovide provide. .
How to file VAT Return in UAE How to file VAT Return in UAE Ataxableperson should prepare VAT return well in advance as he is required to file VAT return online in the form named as ‘VAT 201’ on the FTA portal. Currently, there is no facility available on the FTA portal to file tax return offline in XML or xls or xlsx format. The taxable person must fill up the VAT 201 form correctly and provide information as to sales, purchase, input VAT and output VAT, etc. There are seven sections, as mentioned in the following slidesas per the VAT 201 form:
How to file VAT Return in UAE How to file VAT Return in UAE Taxable Person details Taxable Person details Information as to Tax Registration Number / TRN of the taxable person and contact information. If a Tax Agent is submitting the tax return on behalf of the taxable person, then the information about Tax Agent Approval Number / TAAN) and Tax Agency Number / TAN along with the Tax Agent name and Tax Agency name gets automatically populated. Value Added Tax return period Value Added Tax return period Information as to VAT Return Period, VAT Return Due Date, Tax Year- End, and VATReturn Period Reference Number.
How to file VAT Return in UAE How to file VAT Return in UAE VAT on sales and all other outputs VAT on sales and all other outputs In this section of VAT Return, the taxable person has to provide information as to standard rated tax supplies in different emirates including Abu Dhabi, Dubai, Sharjah, Ajman, Umm al Quwain, Ras Al Khaimah, and Fujairah. Further, detail as to tax refunds provided to tourists under the Tax Refunds for Tourists Scheme should be provided. It is also necessary to provide information as to exempt supplies, zero-rated supplies, goods imported into the UAE, and adjustments togoodsimported into the UAE. VAT on expenses and all other inputs VAT on expenses and all other inputs In this section of Tax Return, you have to furnish information on standard rated expenses, and suppliessubject toreverse charge provisions.
How to file VAT Return in UAE How to file VAT Return in UAE Net VAT due Net VAT due This section requires furnishing information on the total value of due tax for the period, the total value of recoverable tax for the period, and payable tax for the period. Additional reporting requirements Additional reporting requirements Additional reporting requirements are only applicable to taxable persons who have applied the provisions of the Profit Margin Scheme during the taxable period. Others may simplysaytick ‘No’ andskipto the next section.
How to file VAT Return in UAE How to file VAT Return in UAE Declaration and authorized signatory Declaration and authorized signatory This section requires the taxable person to declare that information provided in the VAT return is factually correct, accurate, and complete to the best of his knowledge. Hence, utmost care should be taken while preparing the VAT filing. The taxable person has an option tosavethe draft tax return andsubmit it later.
Care to be taken while filing a Tax return Care to be taken while filing a Tax return Do not leave the amount fields Fill up information for empty. Enter ‘0’ if there’s nothing allmandatory fields todeclare. Make sure to enter all the amounts Double-check the accuracy and in United Arab Emirates Dirham completeness of the information (AED)up totwo decimal places providedtoavoid fines andpenalties
Penalties related to VAT Return Penalties related to VAT Return If the taxable person fails to submit the VAT return within the specified timeframe, then • he has to pay a penalty of AED 1000 for the first time and AED 2000 in case of a repeated failure within 24 months. If the taxable person fails to settle Payable Tax as per the VAT return or Tax Assessment • within the timeframe then, 2% of the unpaid tax becomes dueimmediately • 4% of the unpaid tax becomes due on the 7th day following the deadline for • payment 1% daily penalty is charged on any amount that is still unpaid one calendar • month following the deadline for payment subject toa maximum of 300%.
Penalties related to VAT Return Penalties related to VAT Return If the taxable person files an incorrect tax return then, A fixed penalty of AED 3000 for the first time and AED 5000 in case of a • repeated failure 50% if the taxable person fails to make a voluntary disclosure or makes the • voluntary disclosure after he is notified of the tax audit and the tax authority starts the tax audit process or after being asked for information relating to the tax audit whichever takes place first 30% if the taxable person makes the voluntary disclosure after being • notified of the tax audit and before the authority starts the tax audit 5% if the taxable person makes a voluntary disclosure before being • notified of the tax audit by the authority
Penalties related to VAT Return Penalties related to VAT Return If the legal representative for the taxable person fails to • file a VAT return within the specified time, then the legal representative has to bear the penalties of AED 1000 for the first such failure and AED 2000 in case of repetition within 24 months.
Frequently Asked Questions Frequently Asked Questions I am a newly tax registered business. Is there any relaxation I am a newly tax registered business. Is there any relaxation for me in filing VAT return? for me in filing VAT return? As per theUAEVAT Laws, thereis nosuchrelaxation for filing VAT return. All VAT registered companies need to submit quarterly VAT returns on the 28th of the following month. What are the different options available for payment of tax? What are the different options available for payment of tax? (i) One can settle Payable Tax using e-dirham or credit card (Visa and Master card only) (ii) Another option available is payment via e-debit. Here the payment is processed using retail or corporate banking channels of the taxpayer. (iii) One can also make a fund transfer via GIBAN number as provided by the FTA.
Frequently Asked Questions Frequently Asked Questions Can I file VAT return without settling the payable tax? Can I file VAT return without settling the payable tax? Yes, one can file VAT return without settling the payable tax, but he can not escape the latepayment penalties. Do I have to file my VAT return if I settle the payable tax on Do I have to file my VAT return if I settle the payable tax on time? time? UAE VAT Laws require a taxable person to file his tax return and settle the payable tax on time. If one fails to submit his VAT return on time, then he will be charged penalties.
Frequently Asked Questions Frequently Asked Questions I have come to know of mistakes in my tax return after I have come to know of mistakes in my tax return after submitting it to FTA. What should I do? submitting it to FTA. What should I do? You need to file a Voluntary Disclosure in Voluntary Disclosure Form 211 to correct the mistakes if the net impact of VAT Payable or VAT Receivable is more than AED 10000. If the net impact of such a mistake is less than AED 10000, then you are not required to submit the Voluntary Disclosure Form. Youcan correct suchmistakes or omissionsin the subsequent VAT return. Is it possible to generate a VAT return file from my Is it possible to generate a VAT return file from my accounting software and file VAT return with FTA? accounting software and file VAT return with FTA? Yes, one can generate a VAT return file, and file VAT Return with the FTA if the software is certified by the FTA.
VAT Consulting Service in UAE VAT Consulting Service in UAE N R Doshi & Partners provides a range of tax services, including VAT return filing services, VAT Consulting, and Tax Agent services inthe UAE. Ourservice iscoupled with insight and domain knowledge to help businessesremaincompliantwith theUAETax Laws. Contact Contact us us to know more about how we can work together to makeyou fullyVAT compliant.
