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VAT Filing in UAE

At the end of each tax period, VAT registered businesses or the ‘taxable persons’ must submit a ‘VAT return’ to Federal Tax Authority (FTA).

A VAT return summarizes the value of the supplies and purchases a taxable person has made during the tax period and shows the taxable person’s VAT liability.

Benefits of Filing VAT Return

VAT Filing in UAE

VAT filing guards your business and gives a legal assurance and proof of your business existence.

VAT filing has an upper edge in the arena of tax payments thereby, avoiding financial loss, securing your business furthermore.

VAT compliance brings along with it a certain business goodwill. In fact, many large firms are often reluctant to conduct business with companies that aren’t VAT-registered.

All about VAT return filing service in UAE

You must file for tax return electronically through the FTA portal: eservices.tax.gov.ae. Before filing the VAT return form on the portal, make sure you have met all tax returns requirements. For all kinds of VAT Filing in Dubai Alya can help you.

Taxable businesses must file VAT returns with FTA on a regular basis and usually within 28 days of the end of the ‘tax period’ as defined for each type of business. A ‘tax period’ is a specific period of time for which the payable tax shall be calculated and paid. The standard tax period is:

  • quarterly for businesses with an annual turnover below AED150 million
  • monthly for businesses with an annual turnover of AED150 million or more.

The FTA may, at its choice, assign a different tax period for a certain type of business. Failure to file a tax return within the specified time frame will make the violator liable for fines as per the provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE (PDF, 1 MB).

The taxpayer is responsible for calculating the VAT return during the filing process. It is calculated considering the following factors:

  • The total sales and purchases of your business in the relevant return period
  • The amount of VAT you owe for sales
  • The amount of VAT you can claim for the purchases made

In the end, if you owe more VAT than you are able to claim, then you need to pay the difference. If the situation goes vice-versa, you can either ask for the refund of excess VAT or can carry forward the excess to next return period.

All registrants are required to file VAT return, irrespective to the type of VAT registration or sales, purchases, output tax, input tax, etc.

VAT 201 is a declaration that needs to be made by the end of every tax period. It reflects the VAT that the vendor charged on supplies or details for which he is liable to declare output and input tax.

VAT Filing Dates in UAE
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