How to file VAT Returns in the UAE

Every business or taxpaying individual must submit VAT returns in UAE at the end of the tax period. It summarizes the sales and purchases you have made during a particular tax period.

You have to provide details about your imports, exports, and exempt supplies while filing VAT returns in the UAE. It also includes your VAT payment and collection of every transaction.

Your VAT report should also be based on your invoices and filed through the FTA official portal. Moreover, the tax period varies from a month to a quarter depending on your VAT certificate issued by FTA.

When To File VAT Returns In UAE?

The last day to file VAT returns in the UAE is the 28th day of the month following the end of your VAT return filing period (monthly or quarterly). For example, if your VAT return period is from Jan to March, your last day to submit returns would be the 28th of April.

What Is A Tax Period?

A tax period is the duration of time in which your taxes are calculated and paid. Furthermore, the standard tax period varies based on your annual business turnover. 

1. Quarterly for businesses with an annual turnover below AED 150 million
2. Monthly for businesses with an annual turnover of AED 150 million or more

 

The final decision, however, lies with FTA. It has the ultimate authority to assign a different type of tax period for certain businesses. 

How To File VAT Returns In UAE?

Mainly, the file VAT return is the total of each type of your supplies that occurred in the same file report period while subtracting all eligible purchases, vat & eligible expenses vat.

As for other requirements, they are filled in if they occur, such as:

• Adjustments of less than 10K in the previous file returns
• Adjustments in your vat input
• Using the profit margin scheme
• Adjustments in import custom clearing
• Import of service

 

Watch this video to learn how to file VAT returns in the UAE

VAT 201 Form Explanation

This form is addressed with your registration and application information and automatically filled.

• TRN
• Taxable Person Name
• Taxable Person Address
• VAT Return Period

VAT On Sales and Other Outputs

It contains the details of all sales and supplies made during the tax period. It has the following values:

1. The total amount (AED) of the transaction as per the invoice
2. The VAT collected (AED)
3. Any adjustment (AED) to output tax (during the earlier tax period)

 

This return portion is segregated into nine parts. 

Section 1: Standard Rated Supplies

You are supposed to fill in the details of sales of all goods and services you have sold or supplied in the UAE with 5% VAT.

As shown in the screenshot, it also has a subsection for each Emirate which means that you have to categorically provide the sales details and VAT collected from your customers. 

This section includes the following:

1. The sales & supplies of goods and services plus 5% VAT
2. The supplies of goods & services at the discounted rate
3. Sales you have made through Vending Machines
4. Commercial property supplies
5. Intracompany sales
6. Staff supplies
7. Deemed supplies
8. Customer reimbursements
9. The total amount of goods being sold under the profit margin scheme
10. Sales made by non-residents registered under VAT are not accountable for TAX calculations
11. Good supplies within the designated zones that were also consumed in the designated zones
12. Services supplies within designated zones
13. Value reductions due to credit notes
14. Any previous tax period errors you have permission to fix

 

Please note this is applicable where payable tax is more or less than required by AED 10,000 more or less. If your tax value error is more than AED 10,000 in the tax period, you need to submit a voluntary disclosure.

This section does not include:

1. Goods sold in the designated zones but not consumed in the designated zones
2. Supplies that are out of scope
3. Zero-rated supplies
4. Exempt supplies
5. Disbursements
6. Sales within the tax group

Section 2: Tax Refunds for Tourists

It is only applicable to registered retailers who have provided refunds to tourists under the tax refunds for tourists scheme. The amount also needs to be negative and in AED.

Section 3: Supplies Applicable to the Reverse Charge Provisions

It asks for the value of imported services from suppliers outside the GCC. 

This section includes:

1. Service imports subject to 0% or 5% VAT
2. Crude oil purchases for the resell purpose
3. Any service availed of a legal firm that is not registered under VAT
4. Gold and Diamond or any manufacturing purchases made up of these components for resell purposes.
5. Purchased goods that have not obtained clearance from the customs department.

Section 4: Zero-Rated Supplies

It covers the value of your exports to non-GCC countries or any goods and services supplies at 10% VAT.

This section includes the following:

1. Exports of goods and services outside the GCC
2. Certain educational services and related goods supplies
3. Certain healthcare services supplies and relevant goods
4. Precious metal sales that are bought for investment purposes
5. Crude oil and natural gas sales

Section 5: Exempt Supplies

It covers the supplies of goods and services that fall outside VAT’s scope.

This section includes

1. Domestic supply of specific financial services
2. Residential properties’ sale or lease
3. Sale of bare land
4. Local passenger transport for business purposes

Section 6: Imported Goods in the UAE

This section pops up based on your import declaration under your custom registration number. It should also be linked to TRN.

This section includes

1. Imported goods in the UAE through UAE customs
2. Goods imported by agents on behalf of unregistered people

Section 7: Adjustments and Additions to Goods Imported into the UAE

This section is to make corrections if you have any to the auto popped up information in section 6.

Section 8: Totals

Totals will be automatically calculated while taking the subsection 1-8 data into account. 

VAT On Expenses and Other Outputs

This section captures the following:

1. The total amount of purchases (AED) based on your invoices
2. The VAT refund (AED), according to the law
3. Any adjustments (AED) to your input taxes

 

Furthermore, it has three sections:

Section 9: Standard Rate Expenses

It covers all your purchases with 5% VAT, including the VAT refund claims for your purchases in another GCC country that also implements VAT. 

This section includes the following:

1. Goods and services you have purchased for business purposes with 5% (From the VAT registered suppliers).
2. Goods and services that you purchased at a discounted rate.
3. The total amount of your purchases (being sold under the profit margin scheme)
4. Goods and services bought before VAT registration for which you want to claim the VAT refund Dubai
5. Value reductions due to credit notes
6. Any error you can correct for previous tax records

 

The section should exclude:

1. Wages and salaries
2. Purchases made for personal use
3. Expenses with disallowed input tax. For example, Entertainment cost
4. Expenses made for exempt or non-business supplies
5. Exempt or zero-rated purchases
6. Goods that you purchased in the designated zones but not consumed in the designated zones
7. Donations or money donated to charity
8. Purchases from the members of the same tax group
9. Fines and penalties

 

Please note that the adjustment column is only for the use of:

1. Bad relief adjustments
2. Annual adjustments of input tax apportionment
3. Capital asset scheme

Section 10: Supplies Subject to the Reverse Charge Provisions

It includes transactions with VAT that are declared in sections 3,6, and 7, which you can recover for imports and purchases.

Please include the total net value in the amount column and the VAT refund amount in the recoverable amount column. 

This section includes the following:

1. Goods and services imports with 0% and 5% VAT under the reverse charge mechanism and valid for a VAT refund.
2. Domestic supplies are subject to the reverse charge mechanism.     
3. Good imports by agents on behalf of unregistered people.

Section 11

It auto-calculates the data provided in subsections 10 and 11. 

NET VAT Due

This section shows the VAT amount you owe to the government. The following formula is used to calculate VAT: 

Total output VAT payable – the eligible VAT input amount = Total VAT amount payable to the government. It is segregated into four parts

Section 12: The Total Value of Due Tax for the Period

The section counts the total value of your pending tax for the tax period. It is your total output tax value. 

Section 13: The Total Value of the Recoverable Tax for the Period

This section counts the total value of your refundable tax for the tax period, and it is essentially your total refundable tax value.

Section 14: Payable Tax for the Period

This section counts the total value of your payable tax for the tax period. Additionally, it also subtracts the value of section 13 from section 12. 

Section 15: Do you Wish to Request a Refund for the Above Amount of Reclaimable VAT?

A Yes or No question. Choose Yes if you wish to receive your VAT refunds in cash. Alternatively, you should select No if you want to offset your VAT payable.

Additional Reporting Requirements

Profit Margin Scheme

The question in the screenshot is only relevant to those who sell second-hand goods. In this scenario, the inputs are VAT-exempt because VAT applies to profitable sales only. If you have enrolled yourself in the program, select Yes. 

Transfer of Goods to Other Countries (That have Implemented VAT)

This is specifically applicable to businesses that transfer goods to their branches within GCC countries. Moreover, it shows the taxable value in three numbers: Amount (AED), Input VAT amount (AED) on your recovered VAT, and any adjustments (AED) to the value of goods

Transfer of Goods to Other Countries (That have Implemented VAT)

This is specifically applicable to businesses that transfer goods to their branches within GCC countries. It shows the taxable value in three numbers: Amount (AED), Input VAT amount (AED) on your recovered VAT, and any adjustments (AED) to the value of goods

Refundable VAT Paid in Other GCC Countries (That have Implemented VAT)

This section is an extension of section 10. Additionally, you may submit the refundable VAT on your purchases in GCC countries. 

Declaration and Authorized Signatory

Last but not least, validate your identity to authenticate the data you have provided. After that, your personal information will pop up after your declaration. 

Looking for Somebody to Take Care of your VAT Returns in UAE?

If you need assistance with VAT filings, look no further than us. N.R. Doshi & Partners has a proven track record of providing impeccable VAT returns and other VAT-related services.

Our authorized CPAs and accountants understand the UAE VAT laws and bring their years of experience and expertise to serve you nothing but the best. Do you want to know more about VAT returns in the UAE? Please write to us at enquiries@nrdoshi.ae; our VAT expert will contact you shortly.