VAT return filing in UAE
Any business which is operational in UAE needs to file VAT returns as per the Federal Tax Authority. Value Added Tax (VAT) was implemented by the UAE government from 1st Jan 2018. In this the companies are entitled to submit a VAT report to the FTA at the time of their tax submission. The document that needs to be submitted to the FTA is called as a VAT report whereas the process is termed as VAT Return submission. While submitting the VAT Return Filings the businesses need to maintain their books in a highly organized manner to avoid any penalties. VAT Return filing is submitted by the taxable individual or someone who is authorised on behalf of the taxable individual.
WHERE TO SUBMIT your VAT returning filing
For VAT Return Filing, businesses are categorized into different groups depending upon the size and nature of their business. To file their VAT returns, businesses can use the Federal Tax Authority (FTA) portal. The taxpayer is obliged to provide information such as Sales, Purchases, Input VAT, Output VAT, etc while submitting their VAT Return on the online FTA portal.
VAT RETURN FORM
For VAT Return Filing, taxpayer has to fill-up a form which is known as “VAT 201” which is available on the portal. This is normally classified into seven sectors listed below”
➢ VAT Return Period
➢ Taxable Person Details
➢ Net VAT Due
➢ VAT on sales and all other outputs
➢ VAT on expenses and all other inputs
➢ Declaration and Authorized Signatory
➢ Additional reporting requirements
Under some specific situations, a taxpayer also have to submit a form know as “VAT Voluntary Disclosure Form 211” which is also available on the FTA portal.
There is another form known as ‘VAT Voluntary Disclosure Form 211’ available on the FTA portal; it is to be filled under specific situations.
To fill-up the VAT Return Form 201, a taxpayer has to login to the portal using their credentials. Once a user login, to initiate the process they have to click on the VAT 201 – then New VAT Return; many sections of the form will be open. The taxpayer has to follow the following procedure for VAT Return Filing.
Some of the details of taxpayer will be auto populated which are Tax Registration Number, Name, and address. If this process is done by the Tax Agents then the details of Tax Agent Approval Number (TAAN) and the associated Tax Agency Number (TAN) along with the Tax Agent and the Tax Agency name gets automatically populated at the top of the VAT Return.
WHO NEEDS TO FILE VAT RETURN IN UAE?
The VAT registration is classified under three categories mainly mandatory VAT registration, voluntary VAT registration, and exemption VAT registration. It is not mandatory for all the businesses to get VAT registered. It is required for businesses to get VAT registered if the value of their taxable supplies exceeds AED 375,000 over the preceding 12-month period or is estimated to exceed that supplies in the next 30 days.
VAT RETURN FILING PERIOD
he VAT return due date gets auto-populated once a taxpayer fills-up the VAT Return Form 201.
The tax year-end plays an important role for businesses that are unable to recover their input VAT and are required to preform an input tax annual adjustment. A taxpayer can do such adjustment in the first VAT return only which is followed by the tax year-end. VAT return period reference number represents the VAT return period which you will be completed within that tax year.
VAT RETURN FILING DUE DATE UAE
Below listed are the steps that should be taken care of before filing VAT Return:
1. All amounts must be in AED Currency
2. It is compulsory to fill-up all the mandatory fields present in the form
3. All amounts must be rounded off to the nearest figure
Once the VAT return filing is initiated, the net amount payable gets automatically calculated. If the payable amount is negative, then the taxpayer gets two option either carry forward the amount to next Tax Period or request for a refund.
The taxpayer should submit their VAT Return Filings to the FTA before 28th following the end of the Tax Period or by other date stated by the FTA. Due payment to the FTA, it should be received by the FTA by the same deadline.