VAT Return Filing Services in Dubai, UAE

As part of the VAT system, VAT returns are required to be filed by entities to report the VAT they have collected and paid to the tax authority during a given period. During a tax period, a VAT return summarizes the supplies and purchases a taxable person made and shows their VAT liability.

Filing of a VAT Return

It is a legal requirement that all businesses in the United Arab Emirates comply with VAT regulations and follow all the FTA rules and regulations. Therefore, in addition to registration with the FTA on time, you must create and use a proper VAT invoice and keep appropriate records and accounts.

Liability of VAT

The VAT obligation is the difference between the output tax chargeable (VAT on supplies of goods and services) and the input tax recoverable for a given taxation period. Therefore, it is necessary to distinguish between FTA and output tax in cases where the output tax exceeds the input tax. In contrast, if the input tax is greater than the output tax, a taxable person will be entitled to recover the excess input tax and set it off against future payments due to FTA.

How to file a VAT return?

The online portal made available by the Federal Tax Authority allows taxable individuals in the UAE to submit their VAT returns. Initially, the taxpayer should log into the FTA online portal using their respective username/email address and password to access Form VAT201. Afterward, a tax professional will help you complete the form and file it by the deadline set by the FTA.

How do companies process VAT return filing in the UAE?

When it comes to VAT return filing in the UAE, companies must submit regular returns to the FTA detailing their taxable supplies and the amount of VAT charged and paid. This process can be time-consuming and confusing, especially for businesses unfamiliar with the UAE's tax laws and regulations. However, by working with a reputable auditing firm like AMCA, companies can ensure that their VAT returns are filed correctly and on time, avoiding potential penalties or fines from the FTA.

What is the significance of VAT Return Filing in the UAE?

VAT return filing is significant because it ensures compliance with UAE regulations. Failing to file a VAT return or an inaccurate one can result in penalties and fines. In addition, accurate VAT return filing can help businesses avoid overpaying or underpaying VAT, impacting their cash flow and profitability.

Why should you file your VAT returns through VAT Experts?

VAT return filing services in the UAE through experts provide the following benefits:

Expertise
VAT return filing services have a team of experts who can ensure accurate and timely VAT return filing.
Compliance
VAT return filing services can help businesses to ensure compliance with the VAT regulations in the UAE.
Time-saving
VAT return filing services can save businesses time by handling the entire process on their behalf.
Cost-saving
VAT return filing services can help businesses avoid penalties and fines, resulting in cost savings in the long run.

What are the Penalties for not filing VAT Return in the UAE?

All taxable persons in the UAE are required to file VAT returns with the FTA at the end of every tax period. According to law, the VAT Return must be received by the FTA authority no later than 28 days following the end of the tax period.

A VAT registrant who fails to file a VAT Return within the FTA's specified deadline will be subject to a VAT fine of AED 1,000. A further fine of AED 2,000 will be imposed if the defaulter commits the same act again within 24 months.

When filing a VAT return in the UAE, what are some of the most common errors businesses make?

Some of the common mistakes businesses make while VAT return filing in the UAE includes:

Failing to maintain accurate records of VAT transactions.
Failing to charge VAT correctly on sales or claiming incorrect VAT on purchases.
Failing to file VAT returns on time.
Failing to report all VAT transactions in the VAT return.
Failing to reconcile VAT returns with VAT payments.

To avoid these errors, businesses should ensure that they have a robust VAT accounting system in place and seek professional advice when necessary.

When are businesses required to file VAT returns?

The FTA requires taxable organizations to submit VAT returns within 28 days after the end of the tax period applicable to their business type. 'Tax period' refers to a specific time frame in which the taxable amount shall be determined and paid. A typical tax period is:

Quarterly for companies with a turnover of less than AED 150 million
Companies with annual revenues exceeding AED 150 million are assessed monthly

Businesses may be allocated different tax periods at the discretion of the FTA. However, if failure to file a tax return within the prescribed period, the violator will be liable for fines under Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of UAE Tax Laws.

How can AMCA help you?

If you need assistance filing your VAT return, our VAT experts in AMCA Auditing are available to help.

We have VAT experts who can assist you with all VAT-related issues. By utilizing our services, you can avoid VAT fines and penalties. Therefore, allow AMCA to handle all the VAT concerns you have.

VAT Consulting

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