VAT return is a record or statement of the VAT paid on taxable supply of goods and services during a specified period. Usually, VAT returns are filled quarterly and sometimes on a monthly basis. As per the Federal law no. (7) of 2017 on Tax procedures, a taxable person needs to submit VAT returns in UAE with the information and data specified for Tax purpose in accordance with the form, specified by the Federal Tax Authority.
When to File VAT Return?
Timely filing of the VAT returns is essential for the registered businesses in order to be compliant with the rules and regulations laid down in the law. Every VAT registered business has to pay the VAT due (after adjusting the input VAT from the Output VAT liability) before filling the return. VAT return can be filled only after the VAT due amount is deposited, with the regulatory authorities.
How to File VAT Return?
VAT return can be filed online using e-filing portal of Federal Tax Authority. There is no provision for filling the VAT return manually; it is entirely an online process and it has to be followed on a monthly and a quarterly basis.
Importance of VAT Return filing
It is an important mechanism for the viability of VAT system, since it works as a medium for reporting the VAT collected and paid to the revenue authorities. . VAT return filing is a formal way of reporting the VAT collected and paid during any particular period. VAT return is prepared on the basis of the documents available in the records or ledgers. VAT returns also form a basis for auditing and activities related to enforcement of VAT law.
How can we help?
Professional l tax consultants and accountants play very useful role in VAT return filing. Their professional advice helps immensely to the businesses in complying with the rules and regulations laid down by the tax authority. Our dedicated tax agent team for VAT return filing will unburden you with such hectic and engaging tasks that demands constant compliance. They constantly keep track of the time-frame specified by the FTA and perform the function of return filing within the stipulated time, thereby, ensuring smooth compliance of the law, and related rules and regulations
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Registered businesses are expected to file VAT returns on a regular basis. It is expected that the default period for filing VAT returns will be three months for the majority of businesses.
The VAT rates will be charged at single rate at 5% in UAE on taxable goods and services.
Government may carry out this audit directly or through its registered agents to check the tax returns of the companies. Businesses are needed to maintain physical records of all purchases and supplies as also maintain complete registration details of suppliers and customers.
Just imagine that X trading runs a coffee shop and spends AED 100,000/- on getting raw materials, so input tax becomes 5% of AED 100,000 = AED 5,000/-
Now after selling the food, the firm makes sale of AED, 2, 00,000. Considering 5% output tax, output tax becomes AED, 10,000. Therefore, the final VAT payable would be AED 5,000 = AED 10,000 – AED 5,000.
