VAT Return Filling
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VAT RETURN FILLING
The VAT Return is an official document that must be filled out by the Taxable Person and submitted to the Federal Tax Authority (FTA) on a regular basis. It includes details of any output tax due, input tax recoverable, and other required information. For the purposes of this guide, we’ll refer to it as the A/AT return. All VAT Returns must be submitted online through the FTA portal. The return may be submitted by the Taxable Person or by another authorized person, such as a Tax Agent or Legal Representative. By following the instructions carefully, you can ensure that your VAT Return is submitted accurately and on time, avoiding any potential penalties or fines.
A Tax Period refers to a specific period of time that is used to calculate and pay the payable tax. For most Taxable Persons, the standard Tax Period is three calendar months, which ends on a date determined by the FTA. However, some groups of Taxable Persons may have a different Tax Period assigned to them. In certain cases, businesses may need to file VAT returns in Dubai on a monthly basis. If a Taxable Person is assigned the standard Tax Period, they can request to end the Tax Period with the month they choose, and the FTA may approve such a request. VAT return filing in the UAE must be done by the 28th day following the end of the Tax Period, or as directed by the FTA. Any payments due to the FTA must be received by the same deadline. By following these guidelines, you can ensure timely and accurate filing of VAT returns in Dubai.
Discover some essential concepts that are crucial to the operation of VAT and how they could affect the tax responsibility of a Taxable Person. Understanding these terms can help you manage your tax liabilities efficiently and effectively. Read on to learn more about these concepts and how they relate to VAT operations.
A Tax Period refers to a specific duration during which the payable tax is calculated and paid. Typically, a Tax Period for a Taxable Person lasts for three months, ending on a date determined by the Federal Tax Authority (FTA). However, the FTA may assign a different Tax Period for a certain group of Taxable Persons, such as those who need to file monthly VAT returns. If a Taxable Person is given the standard Tax Period, they may request to end it in the month of their choosing, and the FTA may approve such a request at its discretion. Once the Tax Period ends, the VAT Return must be submitted to the FTA no later than 28 days from the end of the period, or as directed by the FTA. If any payment is required, it must be received by the FTA by the same deadline. Keep these deadlines in mind to avoid any penalties or issues.
If you’re a taxable person, it’s essential to understand the key terms associated with VAT operation as they can have a significant impact on your tax liability. To help you navigate this process, we’ve listed some crucial terms related to VAT operation that you should be aware of. Understanding these terms can help you manage your tax liability more efficiently and ensure compliance with all relevant regulations. So, take the time to familiarize yourself with these terms and their implications. Doing so can help you avoid costly mistakes and ensure your business runs smoothly.
“Output tax” is the value-added tax (VAT) that a registered Taxable Person calculates and applies to its supplies of goods and services. This tax is calculated on supplies made to other individuals, although there are specific cases where VAT may need to be charged on supplies deemed to occur for VAT purposes or on supplies that fall under the reverse charge provisions. It is the Taxable Person’s obligation to account for output tax at the tax point of supply, which is the date of supply. The Taxable Person must record the output tax in the VAT Return that covers that Tax Period after the date of supply has occurred. It is crucial to follow these rules to avoid any penalties or issues with VAT registration.
When a recipient buys goods or services that are subject to VAT, the supplier adds an input tax to the price. As a recipient, you may be able to recover this input tax from the FTA if you’re registered for VAT. However, there are certain conditions that must be met. First, you need to have received and retained a tax invoice or other documentation that proves the amount of VAT on the supply or import. Additionally, you must have paid or intend to pay the VAT in full or in part. If these conditions are met, you can include the amount of recovered input tax as an input tax deduction in your VAT return. This can be a great way to manage your VAT payments and reduce your overall costs, so be sure to take advantage of this benefit if you’re eligible.
Choose the Perfect Plan
Here, you can get several packages based on micro, small, medium and large VAT return filing.
VAT Return Filing - Company
- Up to 100 Transaction
- VAT Filing & Reporting
- VAT Adjustment, Amendment , Refund Process
- 30 minutes Live session
- Dedicated Accounts Manager
- FREE VAT & CA Consultancy
VAT Return Filing - Group
- 100 to 500 Transaction
- VAT Filing & Reporting
- VAT Adjustment, Amendment , Refund Process
- 1 Hour Live session
- Dedicated Accounts Manager
- FREE VAT & CA Consultancy
Calculating tax liability
The tax liability of a registered person is calculated by subtracting the recoverable input tax from the payable output tax for a particular Tax Period. If the output tax is greater than the input tax, the difference must be paid to the FTA. On the other hand, if the input tax is greater than the output tax, the Taxable Person is eligible for a refund of VAT from the FTA. This refund can be claimed according to the regulations and procedures outlined by the FTA. It’s important to keep track of your input and output tax to avoid any discrepancies in your tax liability.
Filing VAT Returns
As a Taxable Person, you’ll need to submit a VAT Return for each Tax Period, detailing your supplies made or received. In terms of sales and other outputs, your VAT Return should include: 1. supplies of goods and services subject to the standard rate of VAT per Emirate; 2. tax refunds issued to tourists under the official Tax Refunds for Tourists Scheme, if you’re a retailer providing these refunds in the UAE; 3. supplies of goods and services received that are subject to reverse charge provisions; 4. supplies of goods and services made that are subject to the zero rate of VAT; 5. supplies made that are exempt from VAT; 6. imported goods declared through UAE Customs; and 7. adjustments (if applicable) to imported goods declared through UAE Customs. Ensure that your VAT Return is accurate and complete to avoid any penalties or legal issues.
When it comes to purchases and other inputs, the Taxable Person must include two specific types of items in their reporting. First, they must report purchases and expenses that were subject to the standard rate of VAT, and for which they would like to recover VAT. Second, any supplies subject to the reverse charge for which input tax recovery is desired should be reported. The VAT charged and input tax recoverable must be netted off in the Tax Return, resulting in the net VAT position, which is either the net VAT payable to or refundable by the FTA. If you’re a new company in need of VAT registration, be sure to visit VAT Registration UAE for assistance.
