VAT Return in Dubai, UAE
Taxpayers need to file quarterly tax returns and submit to the UAE FTA. All details to be furnished in the VAT return forms must be in compliance with the format issued by the authority. Read continue to know everything about the VAT Return in UAE.
What is VAT Return and Why is it important?
A VAT Return form is the taxpayer’s formal statement about his/her VAT liability for a given financial tax period. It contains records of the transactions made and tax paid for a given quarter.
Online VAT returns are mandatory practice to ensure a proper and robust taxation system. VAT returns help authorities to perform audits as well as keep a check on liabilities and increase compliance.
VAT returns are tools that enable different categories of citizens like daily workers, office goers, business owners to share a part of their earnings with the government. The government with the revenue generated improves public services as well as creates other job and revenue sources.
Who Needs To File Vat Return in UAE?
Any business in the UAE with an annual turnover of DH375,000 or more needs to register for VAT and file quarterly VAT returns. This is the mandatory threshold limited. Businesses with an annual turnover below this limit but above Dh187,500 can voluntarily register for VAT and file returns.
The VAT registration is mandatory for all businesses who cross the threshold limit, irrespective of the nature or type of the business.
VAT Return Filing Period
The standard Vat return period is quarterly. However, the UAE FTA may consider monthly return periods for certain specific businesses to increase tax compliance and curb tax evasion by false means.
Return Filing Period
- Quarterly Return
- Monthly Return
VAT Return Filing Due Date Dubai
Registered Taxpayers must file their VAT Returns on or before the 28th of the subsequent month following the end of the tax period. For example, for the month of January 2018, the last date for filing VAT Returns will be 28th June 2018. Following are the VAT returns due date for the FY 2018.
|Return Period||VAT Return Due Date||Quarter|
|January to March 2018||29th April 2018*||Q1|
|April to June 2018||28th July 2018||Q2|
|July to September 2018||28th October 2018||Q3|
|October to December 2018||28th January 2019||Q4|
VAT registered Businesses must not refrain from filing VAT returns even if they have remained dormant in the past or ineluctable abstained from filing returns for a given period.
Classification of Supplies – VAT Return Form
Registered businesses in UAE are mandated to file online VAT Returns. Registered businesses must submit The summary level VAT Return forms need. The registered businesses in UAE are required to file online VAT return.
The VAT return form in UAE is expected to be at summary level. This means the registered businesses are required to submit consolidated details of supplies like total purchases and sales made during the given tax period, remaining payable tax( if any) after evaluating the output and input VAT tax.
However, the taxpayer needs to categorize the supplies under VAT as follows:
- Standard rated
- Zero rate Supplies
- Exempt Supplies
- Reverse Charge Supplies
- Intra GCC Supplies
- VAT Return Filing
The VAT return filing process in UAE will be online. All registered businesses in UAE can submit their VAT returns by visiting the FTA portal. Taxpayers must submit their returns via the portal. The portal does not support offline mode.
Hence submitting VAT Returns through XML, EXCEL is currently not supported. This demands that the taxpayer must be well versed with the FTA’s VAT portal. He/She must careful while manually providing the values of Sales, Purchase, Output VAT, Input VAT etc. in the appropriate boxes.
Important VAT Points
Value of goods and services on which standard 5 percent VAT rate is applicable has to be separate by Emirate.
VAT on imported Goods is evaluated on the declaration by the customs department.
How to File VAT Return in UAE
The procedure for filing VAT Return UAE will be online and constitute of some easy to follow simple steps. Taxpayers need the mandatory unique TIN number and password to login to the FTA’s e-service portal. This must be followed by filling and submitting the VAT Return form.
Last but not the least is the payment step. Taxpayers can choose the payment option as per their convenience via the “My Payments” tab. For more details visit the DFTA portal – eservices.tax.gov.ae.
Fails to file a VAT return
If in case, the taxpayer fails to file a VAT return within a specific timeline then he is entitled to pay penalties as per the legal provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE (PDF).
Read more on VAT:
- UAE Introduces Tourist Refund Scheme on Goods Purchased
- Standard Rated Supplies in VAT Return Form 201 Explained
- VAT Return Form 201 – Import of Goods