VAT Return Filing in the UAE

VAT Return Filing Process

The UAE government introduced VAT on 1st January 2018, and with time it has witnessed a few changes. In the beginning, businesses were sorting out their registrations, and now it is time for their first VAT return filing. Moreover, individuals and businesses registered for VAT must now submit VAT return filing in the prescribed format stated by the FTA (Federal Tax Authority).

VAT return filing in the UAE is a continuous process, quarterly in most cases. However, it could be monthly in some instances.

Let us first understand what a VAT return is and why it is important to file returns.

A VAT return is a periodic statement that shows the taxable amount during a stipulated period. This taxable amount is termed output tax. On the other hand, the tax that businesses/individuals pay during that period is input tax. The differential amount ends up in the government’s coffers.

VAT return filing is straightforward, yet individuals and businesses may commit costly blunders because of the following reasons:

  • Ignorance of UAE laws
  • Inadequate knowledge of VAT return filing
  • Improper maintenance of financial records
  • Lastly, unorganized transaction mapping

Hence, VAT return filing in the UAE is essential to check if companies & individuals have complied with the relevant rules and regulations. Most importantly, the VAT process also tells the authorities if the end-users are paying the proper tax to the authorities.

The Procedure of VAT Return Filing in the UAE

VAT return filing in the UAE is an online activity. Concerned businesses and individuals can log on to FTA’s portal to complete the VAT return filing process. FTA has laid down rules, procedures, as well as a prescribed format for VAT return filing. Every business/individual must follow these rules and file their VAT return accordingly. 

A wrongly calculated VAT return may lead to heavy fines or penalties for the registrant. Timely submission is equally crucial because the authorities will treat a late submission as non-compliance with VAT laws, resulting in penalties.

What can you do to avoid these situations?

Whether you are a business person or an individual, you need to know VAT laws and ensure compliance. Our experts can help you with the documentation procedure while guiding you to fulfil your tax obligations. With timely VAT return filing and compliance, you can boost your business reputation as well as safeguard your hard-earned income.

When Should you File a VAT Return in the UAE?

Every business/individual who supplies and imports exceed a particular threshold must pay VAT while filing the return within 28 days of each tax period as stated by the FTA. The VAT return filing process must be as per the provisions of the UAE VAT law. 

An accountant or tax consultant’s role is crucial while ensuring VAT compliance in the UAE. VAT is nothing but a tax on transactions. Even if you go wrong with one transaction (wrong mapping), it can have significant consequences. In fact, we can help you weather the storm by walking you through various VAT phases like registration, implementation, transaction mapping, return filing, accounting, etc. 

Want more information about VAT return filing in the UAE and other VAT-related services? Schedule a consultation or reach out to us at 

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