Your Basic Guide To VAT Filing In The UAEVAT filing in the UAE is an official tax document submitted to the Federal Tax Authority (FTA) that shows how much VAT is due for you to pay. The procedure of VAT return filing requires the taxable entity to file the VAT return at the end of each quarter of a financial year. The document contains all the details of output tax due and input tax recoverable along with the other supporting information as required in the pre-defined format.
The process of VAT filing can also be completed by a legal representative or a tax agent on behalf of the taxable person or business.
Where can I find the VAT Return Format?
You can easily find the format for VAT return at the official website of the Federal Tax Authority in the “VAT201- VAT Return” section. To access the format, you need to login to the FTA e-services portal by using your registered username and password.
When should I file a VAT return according to the FTA guidelines?
The FTA requires you to file the VAT return not later than the 28th day of the month following the tax period or by the specific date requested by the FTA. For instance, if your VAT return period is July 2020 to September 2020, then the due date of your VAT return is 28th October 2020.
In case your payment is due, it must be paid by the same deadline and if the due date falls on a weekend or a national holiday, the deadline is extended to the first business day thereafter.
Will I be fined for late payment of due VAT?
Paying late for the VAT return means you will attract a penalty of AED 1,000 for the first time. The penalty amount is increased to AED 2,000 for subsequent non-compliance of VAT return filing within 24 months. Thus, it is critical that you file VAT return on time and pay the due VAT before the deadline.
What is a financial year in the UAE?
In a financial year, also known as a fiscal year, there are four quarters, and one quarter is equal to three calendar months. In the UAE, a financial year starts in January and ends in December. It is important to note that the FTA has assigned different tax periods for a certain group of Taxable Persons or Businesses.
For instance, some of the taxable groups have tax periods on a monthly basis.
A taxable person can request the FTA to change the tax period. However, it is at the discretion of the FTA to accept or reject the request made.
What should I know to file a VAT return in the UAE?
When you will be filing VAT return, some of the details of the Taxable Person are pre-populated, such as the current VAT Return period, Tax year end, VAT/Tax Period reference number, and due date of VAT Return Submission.
You should take care of the following things while filing a VAT return in the UAE:
- All amounts should be in the United Arab Emirates Dirhams (AED).
- All amounts should be rounded off to the nearest fills.
- All mandatory fields need to be completed.
- In case there are no amounts to declare, then use “0”.
Since any error, done intentionally or unintentionally, can attract penalties and fines, it is best that you seek professional assistance to complete the procedure of VAT filing in the UAE.
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