VAT

VAT Return Filing in UAE

A VAT return is the summary of value of the taxable person’s supplies and purchases that were made during the tax period in addition to their VAT liability, which must be submitted to the Federal Tax Authority (FTA). With all the necessary return requirements, it can be done online via the FTA’s portal.

Who should Register for VAT in UAE?

Businesses that have imports and taxable supplies of more than AED 375000 per annum must register for VAT and it is optional for those that exceed AED 187500 per annum.

How is VAT Calculated?

One is liable to file the tax return when there is a difference between the output tax payable and the input tax recoverable. If the output tax exceeds the input tax, the difference must be paid to the FTA and if the input tax exceeds, then it can be used to pay any sort of payment due to the FTA.
While setting up for VAT return one should report the following in case of sales and other related aspects:

Any supply that is subject to zero or standard VAT rate or exempted from VAT
Supplies received through reverse charge mechanism
Goods imported to UAE which has been declared through customs
Adjustments to goods imported to UAE, declared through customs
Refunds offered to tourists by the Tax Refunds for Tourists Scheme

If no business transactions took place during the tax period, then a nil VAT return must be submitted before the due date. Businesses must file the VAT returns on a regular basis, within 28 days of the end of the tax period. It may differ for each business. Failure to do so will be subject to severe penalties. The penalty will be AED 1000 for the first time delay and AED 2000 for every offense repeated.

How to file VAT Return in UAE?

VAT return filing can be done online at the Federal Tax Authority (FTA)’s portal. Fill in the VAT 201 form. The details to be filled in the form are:

Taxpayers details
VAT return period
VAT on sales and other outputs
VAT on expenses and other inputs
Net VAT due
Any other requirements that should be reported
Declaration and authorized signature

VAT registration can help boost the business as big companies prefer to trade with VAT registered businesses. It brings in goodwill and offers legal assurance for your organization.

There are certain businesses and individuals who are eligible for an exemption of VAT or a refund like a tourist refund scheme offered to tourists if purchased from registered stores.

Be it VAT registration or VAT return filing, it adds up the work that was already being carried out. Companies must have proof of documents and invoices of the past 5 years to register for VAT. Maintaining the accounts properly is the most important thing while registering for VAT. One must be answerable for every transaction. It could build a toll on your organization, which is why it is safer to choose a reputed firm who can help you with all these procedures together.

Aon Management Consultants is all up for lending a hand to you in making VAT return filing and every other process a less tiring one. Our experts will ease up the job as we have been associating with FTA and VAT-related processes ever since its introduction in 2018. We also offer other services related to business setup and consultancy. Aon has dedicated and experienced professionals who will handle all your requirements with their prowess.

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Pradeep P, Manager

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