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Filing VAT Returns in the UAE: Conditions & Requirements

Every taxable person is required to file a VAT return in the UAE to the Federal Tax Authority (FTA) at the end of each Tax period. As per Article 64 of the Executive Regulations of the VAT Decree-Law, the FTA should receive the VAT Return no later than the 28th day following the end of the Tax Period. The Regulations also define the Standard Tax Period for filing the VAT Return in the UAE as a three-calendar-month ending on the date that the Authority determines. Every taxable person who has registered for UAE VAT should file the VAT returns. Non-filing or late-filing of VAT returns attract serious consequences and the businesses should consult with the best tax agents in Dubai, UAE to ensure compliance.

What Should a Tax Return Contain?

The UAE VAT Law says the VAT return should contain all the necessary details as request by the FTA. However, registered tax agents in Dubai recommends the following information should be included in the tax return:

  1. The name, address and the TRN of the Registrant
  2. Tax Period related to the VAT Return filing
  3. The date of submission of UAE VAT Return
  4. Value of Taxable Supplies made by the Person in the Tax Period and the Output Tax charged and Emirates-wise
  5. Value of Taxable Supplies subject to the zero rates made by the Person in the Tax Period
  6. The value of Exempt Supplies made by the Person in the Tax Period.
  7. The value of any supplies subject to Clauses (1) and (3) of Article (48) of the Decree-Law (Reverse Charge)
  8. The value of expenses incurred in respect of which the Person seeks to recover Input Tax and the amount of Recoverable Tax.
  9. The total value of Due Tax and Recoverable Tax for the Tax Period.
  10. The Payable Tax for the Tax Period

How to File UAE VAT Return to Federal Tax Authority?

The filing of UAE VAT return is an online process and it can be performed only through FTA’s portal. The FTA as of yet doesn’t accept any offline VAT return filing in the UAE. The entities that have registered for VAT in the UAE must file the return in the VAT 201 form. The VAT 201 form can be used by all the VAT registrants as soon as the tax period expires. Registered tax agents in Dubai will file the tax returns on behalf of the taxable persons. After logging into the FTA portal and selecting the VAT 201 form, the Vat registrants need to check the following,

  1. Standard Rated Supplies
  2. Tax refunds that are given to tourists
  3. Supplies subject to Reverse Charge Mechanism Provisions
  4. Zero-rated Supplies
  5. Exempt Supplies
  6. Goods imported into the UAE
  7. Adjustments to the goods imported into the UAE
  8. Standard-rated expenses
  9. Calculation of due tax
  10. Refund of recoverable tax

Consequences of Non-Compliance with UAE VAT Return Filing Requirements

Failing to comply with the laws regarding the UAE VAT Return filing will attract hefty penalties from the FTA. Some of the major VAT administrative penalties related to the tax return filing are:

Failure to File UAE VAT Return on Time

A penalty of AED 1,000 will be slapped on the VAT registrant who fails to file VAT Return on the stipulated timeframe fixed by the FTA. Further, the VAT registrant will be liable to pay a penalty of AED 2,000 in case of repeating the offence within 24 months.

Filing Incorrect VAT Return

Incorrect filing of VAT return by the tax registrant is liable for a penalty in the UAE. Two types of penalties are applicable in this case.

  1. A fixed penalty of AED 3000 for the first time and AED 5000 for the second time
  2. A Percentage based penalty on the amount unpaid to the FTA due to the error

Failing to Voluntary Disclose Errors

A taxable person who fails to voluntary disclose errors in the tax return will attract

  1. Fixed a penalty of AED 3000 for the first time & AED 5000 for the second time
  2. 50% of the amount unpaid to the Authority due to the error resulting in a tax benefit for the Person/Taxpayer

The Assistance of Registered Registered VAT Consultants in Dubai, UAE

Dealing with VAT return filing in Dubai, UAE is a complex process as errors or other forms of non-compliance may lead to penalties. The taxable persons must have complete knowledge about the tax period and other requirements mandated by the FTA to ensure compliance while filing a VAT return in Dubai. However, to successfully navigate the intricacies of the process the VAT registrants should hire registered tax agents in Dubai such as Jitendra Chartered Accountants (JCA). JCA is one of the most experienced accounting and auditing firms that offer efficient VAT return filing services in Dubai, UAE. JCA’s registered agents in Dubai are highly qualified to execute the UAE VAT return filing process for businesses of all types and size. JCA also offers impeccable services of VAT registration, deregistration, VAT reconsideration etc. Consult with JCA as soon as possible to avoid non-compliance of VAT in the UAE.

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