VAT Return in UAE
Federal Tax Authority (FTA) has relieved the time duration of the first VAT Return filing in UAE. FTA has given a relaxation to the business with regards to the first VAT Return filing as the first VAT Return period is from January 1, 2018 to May 31, 2018 and then quarterly afterwards. The filing of first VAT return must be before June 28, 2018. Some businesses have given 1 month and others have given 5 months.
What is VAT Return filing in UAE?
VAT Return is an official tax document which needs to be submitted to the Federal Tax Authority (FTA) at period of time according to the tax period. VAT Return format should explain the details of input tax and output tax and some other information required for the submission of VAT Return.
It is necessary for all the taxable businesses to keep their books in an organized and standardized form and must keep all the documents to avoid penalty and fines. All the accounts and books should be organized and must be in a standardized format in order to submit the VAT Return filing. VAT Return will be filed by the Taxable person or the person who is authorized to submit VAT Return filing on behalf of the taxable person like VAT Agent.
VAT Return Format
VAT Return format is available on the Federal Tax Authority (FTA) website with the title of ‘VAT201 – VAT Return’. To get the format of VAT Return, you have to login to the E-services portal of FTA by using registered e-mail and password. Late VAT Returns filing will get the penalty of AED 1,000 for the first time in delay of the VAT Return submission and penalty would be increased if the delay in VAT Return filing occur again.
VAT Return Filing in UAE
Following steps should be take care of before filing VAT Return:
- All amounts should be in AED Currency
- All amounts should be rounded off to the nearest figure of the fills
- All mandatory fields should be filled
After VAT Filing, the details in the VAT Return Form, the net amount payable will be automatically calculated. In case where the payable value is negative, you will have two options – To get a refund or to carry forward the amount to the next Tax period.
Value Added Tax (VAT) shall be paid through e-Dirham payment gateway which supports payments through an e-Dirham card or a credit card (Visa and Master cards only).