Procedure For VAT Returns Filing in UAE

VAT Return Filing in UAE

VAT Returns Filing in UAE

All the businesses in UAE should file VAT returns with the Federal Tax Authority (FTA) on a quarterly basis. VAT Returns must be filed according to the specified dates and duration mentioned on the VAT Application or VAT Certificate, within 28 days from the end of the tax period. All the Taxpayers will file their VAT returns using the e-services portal on FTA website.

To make the procedure for filing the VAT Returns a smooth and easy one for the taxpayer, the Federal Tax Authority (FTA) has released a guide for VAT Returns Filing for the users which will assist them in dealing the operations of e-Services Portal and meet the compliance obligations in respect of VAT Return filing, payments of tax and obtaining VAT refunds.

The key and vital points mentioned in the VAT Return Filing guide are:

  1. Name of the Form to file VAT Return is VAT 201

  2. Name of the Form to claim Input refund is VAT 311

  3. The return can be submitted by the Taxable Person, or another person who has the right to do so on the Taxable Person’s behalf (for example, a Tax Agent or a Legal Representative)

  4. Where the due date for the submission of the VAT Return and the corresponding payment falls on a weekend or a national holiday, the deadline for filing the VAT Return or making a payment is extended to the first business day thereafter

  5. If there is no business transaction for the Tax Period, you are required to submit a “nil” VAT Return by the respective due date

  6. Once the date of the supply has taken place, the Taxable Person must account for the output tax in the VAT Return covering that Tax Period

  7. Supplies within Designated Zone, out of scope supplies and disbursements are not required to be reported in VAT return

  8. One can also make adjustments in the pre-populated VAT amount on import of goods in case there is any error at customs end

  9. For an excess amount, one can either apply for refund for that tax period in Form VAT 311 or can carry forward that amount to next period

  10. VAT Returns must be submitted within the specified deadline, otherwise, a penalty of AED 1,000 will be imposed for the first time of occurrence of a delay. In case of repetitive non-compliance within 24 months, the penalty will be increased to AED 2,000 for each offense

  11. If one do not submit a VAT Return by the specified due date, the FTA may issue a tax assessment to you with an estimate of the payable tax. In such a case, you may be required to pay any payable tax assessed, penalty on non-submission of tax return and/or late payment penalty upon the issuance of the tax assessment (as applicable).

  12. Tax needs to be paid after the submission of VAT return but within the due date for that tax period; and

  13. Following the submission of a VAT Return, the reported Payable Tax must be settled within the deadline. Failure in the payment before the due date would result in a late payment penalty consisting of:

    • (2%) of the unpaid tax immediately levied once the payment of Payable Tax is late

    • (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid

    • (1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with an upper ceiling of (300%)

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