The VAT tax returns will most probably be filed online, and there will be no facility for filing vat returns offline or manually. So, the businesses need to get themselves familiar with the online VAT return filing process. Upon registration on the VAT portal, each taxpayer will be given a unique username and password for their online account on the website. These details are to be used to file returns online.
How to apply: Electronically through the DFTA portal -eservices.tax.gov.ae
For filing tax returns under VAT UAE, taxpayers must fill and submit the ‘VAT 201’ or (VAT Return Form). The VAT 201 form is divided into 7 sections which are as follows :
- Taxable Person Details
- VAT Return Period
- VAT on sales and all other outputs
- VAT on expenses and all other inputs
- Net VAT Due
- Additional reporting requirements
- Declaration and Authorized Signatory
Each section is further divided into a number of boxes. Taxpayers must fill these boxes as per the details labelled on them to complete the VAT Tax return filing process. Below we discuss each of the sections listed above as well as the particular details that must be filled in each of the boxes in the VAT Return Form 201.
Table of Contents
- 7 Detailed Steps to File VAT Return in UAE:
- Section 1. Taxable Person Details
- Section 2. VAT Return Period
- Section 3. VAT on Sales and All Other Outputs
- Section 4. VAT on Expenses and All other Inputs
- Section 5. Net VAT Due
- Section 6. Additional Reporting Requirement
- Section 7. Declaration and Authorized Signatory
- Value Added Tax (VAT) Returns User Guide
- All TAX Return Requirements before Filling in the Form
- Download PDF – UAE VAT RETURN FORMAT
7 Detailed Steps to File VAT Return in UAE:
To file VAT returns, taxpayers must first visit the FTA e-Services portal of the Federal Tax Authority at tax.gov.ae and then log in using their registered username and password.
Once logged in, taxpayers must go to the Form Navigation menu and select the ‘VAT’->VAT 201- VAT Return and finally click on ‘VAT 201-New VAT Return’. The VAT return filing process is initiated.
Once the ‘VAT 201- New VAT Return’ option is clicked, all sections of the VAT return form will open. Below we give pointwise details of the information that has to be furnished in each section and the process for filing the VAT Tax return.
Section 1. Taxable Person Details
The first section is autopulated. In this section personal details like the unique “TRN” or “Tax Registration Number” along with name and address are captured.
Alternately, if tax agent is filing the VAT Return on behalf of the taxpayer, details of TAAN (Tax Agent Approval Number) and the associated TAN (Tax Agency Number) along with the Tax Agent and the Tax Agency name will be auto populated on top of the VAT 201 form.
Section 2. VAT Return Period
The next section i.e the VAT Return Period is also autopuplated. In this section following details are auto populated.
- VAT Return Period: The duration for which returns are to filed.
- VAT Return Due Date: The last day of VAT Return filing.
- Tax Year End: The day when the annual accounting period ends.
- VAT Return Period Reference Number: The VAT return period that is being completed in the current tax year.
- Tax Year End is particularly important for businesses unable to recover input VAT on time. Such businesses must do an input tax apportionment annual adjustment. This adjustment can be done only during the first return succeeding the tax year end.
- In case the VAT return period reference is 1, businesses must include input tax apportionment annual adjustment in the VAT return itself. For now, though, businesses need not do anything as the norm will come into effect only from 1st January 2019 onwards.
Section 3. VAT on Sales and All Other Outputs
In section 3, the taxpayer must provide details like details of standard rate taxable supplies across the seven emirates, tax refunds to tourists, supplies on which Reverse Charge is applicable, zero-rated supplies, VAT exempt supplies, adjustment on imports made in UAE.
Section 4. VAT on Expenses and All other Inputs
Section 4 in the VAT201 form requires taxpayers to furnish details of supplies (inputs and expenses) on which the standard 5% VAT has been levied and liable for the reverse charge. Taxpayers must also fill the eligible recoverable input tax in this section.
Section 5. Net VAT Due
Section 5 on the VAT201 indicates the VAT due or payable for the return period.
Box No 12 labelled as ‘Total Value of due tax for the period’ indicates the total output tax payable for the VAT Tax Period. This is evaluated in reference to the information shared in sales and all other outputs in the previous sections.
Box number 13 labelled as ’Total value of recoverable tax for the period’ must include the total value of Input Tax claimed or to be recovered for the Tax Period. This is evaluated using the declaration in the VAT expenses and all other inputs section.
Box number 14 labelled as ‘Payable tax for the period’ is the difference between the values of Box Number 12 and Box Number 13.
Note: Positive Payable Tax i.e if Due Tax (Box 12) > Recoverable Tax (Box 13), then taxpayers must pay the due net amount. On the other hand, if Due Tax (Box 12) < Recoverable Tax (Box 13), then taxpayers must apply for refund of the net recoverable tax amount or carry it forward to the subsequent VAT return period.
Section 6. Additional Reporting Requirement
This section must be filled by only those businesses that have previously opted for the Profit Margin Scheme. This section is primarily for information purpose only and has no financial impact on the VAT Return. In case taxpayers have not applied for Profit Margin Scheme, they can simply select no and move to the last section of the VAT201 return form.
Section 7. Declaration and Authorized Signatory
This is the last and the final section. The taxpayer needs to fill the following details:
- Name in English.
- Name in Arabic.
- Phone/Mobile Country Code.
- Phone/Mobile Number.
- Submission Date
- Email Address
Once all the above signatory details have been furnished, the taxpayer must tick the box against the declaration statement. In case there is some confusion or taxpayers wants to submit the form at some later date, there is a ‘Save as Draft’ option too. Taxpayers can use it to submit the filled form later.
Once cross-checked and satisfied that all details are correct, taxpayers must click the submit button. A confirmation mail from FTA will be received on the registered email-id upon successful submission of the VAT201 form.
At the last step, you will get the payment option through “My Payments” tab. Ensure payment deadlines are met.
- Federal Law No. 7 of 2017 on Tax Procedures
- Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. 7 of 2017 on Tax Procedures.
The exact procedure for filing UAE VAT returns will be revealed only after the launch of VAT in UAE, however, the process is more or less likely to be the same as mentioned above.
Value Added Tax (VAT) Returns User Guide
All TAX Return Requirements before Filling in the Form
- Value of goods and services made within the limitations period, subject to the standard rate of the VAT, these supplies and VAT has to be separate by Emirate.
- The Supplies of the reverse charge provisions (If applicable) ( VAT has been declared, which other than goods imported ).
- Zero-rated supplies (If applicable).
- Exempt supplies (if applicable).
- Goods imported into the UAE (VAT due is occupied based on the amounts declared by your customs import declaration).
- Improvement to the goods item imported into the UAE (if applicable).
- You would like to recover input tax and the tax amounts that are recoverable which All expenses, subject to the standard rate of the VAT.
- The tax amounts that are recoverable. All expenses which were subject to the reverse charge for which you would like to recover input tax.
Read the complete guide on VAT return form 201 requirements