Complete Guide to VAT Return Filing in Dubai – 2025 Update

1. VAT How to File How to File VAT RETURN VAT RETURN IN UAE IN UAE VAT

2. VAT return filing in Dubai or UAE is an essential obligation for businesses operating in the United Arab Emirates (UAE). As a progressive and modern country, the UAE has implemented a tax system that aligns with international standards. Therefore, the UAE introduced its tax system to diversify its revenue streams and support its economic growth. If your business is registered for VAT with the Federal Tax Authority (FTA), you need to file VAT returns regularly. This means reporting the VAT you’ve collected from your sales and the VAT you’ve paid on your purchases. Knowing how to file VAT in the UAE correctly is essential for staying compliant with the tax regulations. Currently, the authorities have set the VAT registration threshold at AED 375,000 per annum. Failure to file tax returns or comply with the country’s tax laws may result in penalties and fines. That’s why understanding the VAT filing process is crucial for businesses in the UAE.

3. What is a What is a VAT RETURN IN UAE VAT RETURN IN UAE A VAT return in the UAE is a report that businesses submit to the government to show the amount of Value Added Tax (VAT) collected from customers and the amount of VAT paid to suppliers during a specific period. THINK OF IT LIKE THIS: THINK OF IT LIKE THIS: When a business sells something, it adds VAT and collects that money from customers — this is called output VAT. When the same business buys goods or services for its operations, it also pays VAT — this is called input VAT. At the end of every tax period (usually every 3 months or sometimes every month), businesses must send a VAT return to the Federal Tax Authority (FTA) using the EMARATAX online system.

4. Who Needs to File Who Needs to File VAT RETURN IN UAE VAT RETURN IN UAE Any business or individual registered for VAT in the UAE is required to file VAT returns. This includes: Businesses with an annual turnover exceeding the mandatory VAT registration threshold of AED 375,000. Voluntarily registered businesses with a turnover above AED 187,500. FREQUENCY OF FILING VAT RETURNS FREQUENCY OF FILING VAT RETURNS Quarterly: Most businesses file VAT returns every quarter, covering three months of transactions. Monthly: Larger businesses with a high turnover may need to file VAT returns monthly.

5. IMPORTANT VAT IMPORTANT VAT RETURN RETURN Filing Dates in the UAE Filing Dates in the UAE If your business is registered for VAT in the UAE, you need to file VAT returns on time to avoid penalties. The Federal Tax Authority (FTA) gives each business a tax period – this is either every month or every three months (quarterly), depending on your business’s annual earnings. Quarterly VAT Filing(Turnover below AED 150 million) Quarterly VAT Filing(Turnover below AED 150 million) Q1 (Jan – Mar): File by 28th April 2024 Q2 (Apr – Jun): File by 28th July 2024 Q3 (Jul – Sep): File by 28th October 2024 Q4 (Oct – Dec): File by 28th January 2025

6. MONTHLY VAT FILING MONTHLY VAT FILING (Turnover above AED 150 million) (Turnover above AED 150 million) If your business earns more than AED 150 million per year, you need to file VAT every month. The deadline is the 28th of the following month. FOR EXAMPLE: The return for May 2024 must be filed by 28th June 2024. IMPORTANT NOTE: The FTA may assign a different tax period to some businesses depending on their situation. So it’s always a good idea to double-check your business’s assigned tax period in your FTA account.

7. WHAT YOU NEED WHAT YOU NEED TO FILE THE VAT 201 RETURN FORM IN THE UAE TO FILE THE VAT 201 RETURN FORM IN THE UAE If your business is registered for VAT, you must submit your VAT 201 return online through the FTA portal. The process is manual – you’ll need to enter all figures related to your business’s purchases, sales, and VAT amounts. 1. Taxpayer Details 1. Taxpayer Details 2. VAT Return Period 2. VAT Return Period 3. VAT on Sales and Other Outputs 3. VAT on Sales and Other Outputs 4. VAT on Expenses and Other Inputs 4. VAT on Expenses and Other Inputs 5. Net VAT Due 5. Net VAT Due 6. Additional Reporting Requirements 6. Additional Reporting Requirements 7. Declaration and Authorised Signatory 7. Declaration and Authorised Signatory

8. HOW TO FILE HOW TO FILE VAT RETURN IN UAE? VAT RETURN IN UAE? VAT return filing in Dubai or UAE is a straightforward process when you follow these steps: STEP 1: LOG IN TO THE FTA E-SERVICES PORTAL STEP 1: LOG IN TO THE FTA E-SERVICES PORTAL STEP 2: NAVIGATE TO THE VAT RETURNS SECTION STEP 2: NAVIGATE TO THE VAT RETURNS SECTION STEP 3: FILL IN THE VAT RETURN FORM STEP 3: FILL IN THE VAT RETURN FORM STEP 4: REVIEW THE FORM STEP 4: REVIEW THE FORM STEP 5: SUBMIT THE VAT RETURN STEP 5: SUBMIT THE VAT RETURN STEP 6: MAKE THE PAYMENT (IF APPLICABLE) STEP 6: MAKE THE PAYMENT (IF APPLICABLE) STEP 7: RETAIN A COPY FOR RECORDS STEP 7: RETAIN A COPY FOR RECORDS

9. VAT RETURNS IN VAT RETURNS IN UAE CONTENTS UAE CONTENTS The following two sections are in a VAT return in the UAE: – The first section is the central section, which includes the taxpayer’s purchases, and net VAT due. Moreover, the central section is mandatory for all VAT- registered businesses in the UAE. The second section is the additional reporting requirements section, which only applies to certain businesses under specific conditions. Furthermore, this section includes fields related to the profit margin scheme. details, sales,

10. VAT ON EXPENSES VAT ON EXPENSES AND ALL OTHER INPUTS AND ALL OTHER INPUTS This series of sections presents information on all VAT on purchases and expenses made during the tax period. The total taxable business purchase amount is based on purchase invoices, which include any adjustments due to debit or credit notes from suppliers or corrections from previous tax periods. The Recoverable VAT Amount, or the number of VAT refunds that can be claimed according to VAT law. Any adjustments made to the input tax (VAT paid on purchases).

11. NET VAT DUE NET VAT DUE Calculating the net VAT due is crucial in determining the amount of VAT a taxpayer owes to the government. To calculate the net VAT due, the total recoverable VAT is subtracted from the total output VAT payable. Furthermore, if the output VAT payable is higher than the recoverable VAT, the difference is the net VAT due, and you will need to make a payment to the government. The government may refund or carry forward a VAT credit to future VAT periods if their recoverable VAT is higher than the output VAT payable. This section helps to ensure that businesses accurately report and pay their VAT obligations in accordance with the law.

12. ADDITIONAL REPORTING ADDITIONAL REPORTING REQUIREMENTS REQUIREMENTS To comply with tax regulations, businesses that sell secondhand goods and have enrolled in the profit margin scheme must complete this section. They need to select “yes” to indicate their enrollment under the scheme, which applies VAT only to the profit made during sales of secondhand products. Date: July 25, 2025

13. SITUATIONS WHERE SITUATIONS WHERE CORRECTIONS ARE NECESSARY CORRECTIONS ARE NECESSARY You must file a voluntary disclosure if any of the following situations occur: Incorrect Calculation of VAT Payable or Refundable (e.g., input tax claimed incorrectly, or sales figures misreported) Omissions or Underreporting Transactions Incorrect VAT Classification (e.g., zero-rated supplies reported as taxable) Overclaiming Input Tax Late Registration You must file a voluntary disclosure within 20 business days from the date you become aware of the error. of Taxable

14. HOW SHURAA HOW SHURAA TAX CAN HELP TAX CAN HELP Knowing how to file VAT in the UAE on time is very important for your business in the UAE. It helps you stay compliant with the tax rules, avoids fines, and keeps your business running smoothly. If you miss the deadline or make mistakes, it can lead to penalties that can affect your finances. We understand that VAT filing can be tricky, and even minor errors can cause problems. That’s why it’s a good idea to get professional help. Hiring a professional VAT consultant ensures your filings are done correctly and on time, giving you peace of mind and helping you avoid costly mistakes.

15. CONTACT US Phone +(971) 44081900 Email info@shuraatax.com Website shuraatax.com Location 601 Sheikh Zayed Road, 6th Floor, Aspin Commercial Tower – Dubai