How to file VAT return in UAE
A VAT return provides information regarding output tax due and input tax recoverable, that needs to be submitted to the Federal Tax Authority by the taxable person at regular intervals. Submission of VAT return should be done online, via FTA portal, before the 28th day following the end of tax period.
The difference between the output and input tax equals to the tax liability of the registered person. Output tax is charged on the supply of goods and services made to other people, whereas input tax is charged from the recipient of goods or services. A user can recover input tax from FTA, provided there is evidence regarding the amount of VAT paid, which can be a tax invoice or other documentation.
In the case of sales and other inputs, the taxable person should report,
Supplies made that are subject to standard and zero VAT rate and those that are exempt from VAT
Supplies received that come under reverse charge mechanism
Goods that have been imported to UAE, declared through customs
Adjustments to goods that have been imported to UAE, declared through customs
Refunds provided to tourists under Tax Refunds for Tourists Scheme
A nil VAT return will have to be submitted before the due date, if business transactions didn’t happen during the tax period. Failure to submit VAT return within the deadline will result in penalties. In the case of first occurrence of delay, an amount of AED 1,000 will be imposed and if it keeps repeating, AED 2,000 will be charged for each offence.
Tourists visiting UAE are eligible for a VAT refund for products bought at registered stores, under the VAT refund scheme for tourists.
VAT return filing can be made a hassle-free process with the help of AON. We have been associating with FTA for VAT related issues from quite a long time and hence are well-versed with the complete procedure. AON’s VAT consultants are ready to guide you professionally on VAT return filing, anytime.