VAT Return Filing

VAT Filing Dubai, UAE

VAT Filing Services in Dubai, UAE | VAT Return Submission | Accounting Firm Dubai | Bookkeeping Services in Dubai, UAE | Abu Dhabi – UAE

At the conclusion of each tax period, VAT-registered businesses, often referred to as ‘taxable entities,’ are obligated to submit a ‘VAT return’ to the Federal Tax Authority (FTA). A VAT return consolidates the total value of supplies and purchases made by a taxable entity during the tax period, delineating their VAT liability. Any company registered under the VAT Law is required to maintain its records for a minimum of 5 years.

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Maintaining VAT records is crucial for keeping current information regarding VAT filing and preventing unnecessary tax payments. The VAT return encapsulates the total value of supplies and purchases, illustrating the VAT liability of the taxable entity. The FTA portal exclusively accepts online submissions, as offline methods using XML, Excel, or other utilities are currently unavailable. This necessitates taxpayers to manually input values for Sales, Purchases, Output VAT, Input VAT, and more, into the designated fields of the VAT return form accessible on the FTA portal.

The VAT Return form is denoted as ‘VAT 201,’ which taxpayers must complete and submit for VAT return filing. Form VAT 201 is divided into 7 sections, outlined below:

  1. Taxable Person Details
  2. VAT Return Period
  3. VAT on Sales and Other Outputs
  4. VAT on Expenses and Other Inputs
  5. Net VAT Due
  6. Additional Reporting Requirements
  7. Declaration and Authorized Signatory

Each section comprises various boxes where taxpayers must furnish the necessary details to finalize their VAT return filing.

What is VAT Return Filing and VAT Compliance?

In straightforward terms, VAT return filing determines the amount of VAT to be paid to or refunded by the tax authorities. VAT returns are submitted on a quarterly basis, assisting businesses in monitoring their VAT obligations. VAT is also applicable to business entities involved in cross-border activities, making VAT compliance essential to avoid penalties that could impede operations.

Output Tax

1. Tax obligations for standard-rated supplies (5%) differ across emirates.
2. Tax responsibility for goods imported from foreign countries through customs.
3. Tax liability for services provided from foreign jurisdictions.
4. Tax applicable to products acquired outside the UAE with no associated tax liability.
5. Tax reimbursements accessible to individuals traveling within the country.

Input Tax

  1. Tax imposed on standard-rated expenditures.
  2. Tax imposed on the standard-rated acquisition of goods.
  3. Tax imposed on goods procured from foreign sources.
  4. Tax imposed on services provided beyond the UAE borders.

Any individual or entity subject to VAT in the UAE can submit their VAT return via the online portal accessible on the FTA’s website. To begin the process, the taxpayer should log in to the FTA’s e-services portal using their respective username or email address along with their password. Our team of tax experts is available to guide you through the entire form completion process and ensure that the return is submitted within the deadline set by the FTA.

The VAT return in the UAE serves as a document that outlines the tax amount owed or eligible for refund within a designated tax period. The taxable individual is obliged to furnish data regarding the amount of output tax to be paid, as well as the available input tax credit applicable against the output tax. If the output tax of an entity surpasses its input tax, the entity is responsible for remitting the surplus amount to the tax authority. Conversely, when the input tax exceeds the output tax, the exceeding amount is refundable to the entity by the tax authority.