VAT (Value-added tax) was released in the UAE on 1st January 2018. Starting from this date, registered businesses in the UAE are required to file quarterly (or monthly) VAT returns with the FTA online. The registration threshold for VAT is Dh375,000 annual turnover.
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VAT Return Form 201
VAT return form 201 is needed to be filed by UAE Businesses registered under VAT. This is a VAT return form, which contains the summary or consolidated details of the supplies made by a registered person during that particular tax period. The details to be furnished in form 201 include the details of purchases and sales made during the period, total output VAT collected on sales, input VAT paid on purchases, input VAT eligible for credit and the due tax amount.
How to file VAT Return Form 201?
The return form is required to be filed by all businesses/persons registered under UAE VAT. It contains the following heads.
1. Taxable Person Details
b. Taxable Person Name (English and Arabic)
c. Taxable Person Address
This section will contain the TRN (Tax registration number), name and address of the registered entity. The details in this head may be auto-populated based on the user login.
2. VAT Return Period
a. VAT Return Period: This will contain the details of the tax period for which return is being filed. Since the UAE is presently accepting only quarterly tax returns, a business needs to mention the quarter. For example, Jan-Mar’18 needs to be mentioned while filing VAT return for January to March 2018 quarter.
b. VAT Return Due Date: The date on which return is due to be submitted will display here. VAT returns in the UAE will have to be submitted within 28 days from the end of the particular tax period.
c. Tax Year End
d. VAT Return Period Reference Number
3. VAT on Sales and All Other Outputs
Details of the Supplies (Sales) made in the VAT return period
This field will contain the category-wise details of supplies (sales) made along with the amount of output VAT collected on each of these supplies during the return period. The supplies have been divided into the following categories:
1. Standard Rated Supplies: Provide the details of the domestic supplies (sales) at the Emirates level on which VAT is applicable at the standard rate of 5 per cent.
1a. Standard rated supplies in Abu Dhabi
1b. Standard rated supplies in Sharjah
1c. Standard rated supplies in Umm Al Quwain
1d. Standard rated supplies in Dubai
1e. Standard rated supplies in Ajman
1f. Standard rated supplies in Ras Al Khaimah
1g. Standard rated supplies in Fujairah
2. Tax Refund provided to Tourists under the Tax Refunds for Tourists Scheme: If during the tax period you have provided any tax refund to any tourist customer, mention the details here.
3 Supplies subject to Reverse charge provisions: If you have made any supplies (purchases) on which VAT was paid on reverse charge basis (by the buyer/recipient of goods/services), mention the details here.
4. Zero-rated supplies: Furnish the details of supplies made by you on which VAT is applicable at zero rates.
5. Exempt supplies: This will contain the details of VAT exempted supplies made by you. This includes certain financial services and the supply of the residential building.
6. Goods imported into the UAE: Details of any imports made by you on which tax was paid.
7. Adjustments to goods imported into the UAE
4. VAT on Expenses and All Other Inputs
Details of the Expenses (Purchases) made in the VAT return period
This field will contain the details of the business expenses (purchases of goods/services) made by the taxpayer on which input credit is allowed, including standard rated expenses and reverse charge supplies. It will also mention the amount of input tax credit to be recovered.
If you have made any expenses which are not eligible for VAT input credit, you need to remove that from the input recovery. Clearly mention the exact value of input tax credit which you are eligible to recover.
5. Net VAT Due
Total value of due tax
Total value of recoverable tax
Mention the total amount of output tax collected and the amount of input tax to be recovered here.
Total Payable Tax for the period
After adjusting the recoverable input tax from the total output tax liability, the actual tax amount to be paid for the particular tax quarter will be furnished here.
If the output tax collected by you is higher than the input tax eligible for recovery, you will have to pay the remaining amount in the VAT. However, if you have paid more recoverable input tax than the output tax collected, you are eligible for a VAT refund which will be processed in your next VAT return or can be claimed back.
VAT Return Form 201 Format UAE
As you can see in the standard VAT UAE return format, some other details such as profit margin scheme may also be needed based on the registered user.
At the end of the return form, provide the declaration and authorised signatory to confirm the details provided in the return.