Assistance with Filing VAT Returns

All roads lead to submitting VAT returns, regardless of whether a firm is required or optional to register for VAT, or if it is an entity registered as a tax or VAT group. You are unable to avoid engaging in taxable activities in accordance with the FTA. Any firm must be VAT compliant, especially if they wish to avoid incurring needless fines and complications. Additionally, completing your VAT returns on time and correctly keeps you compliant with the law. Any VAT-registered business in the UAE that wants to inform the tax authorities (FTA) on the VAT that was collected and paid by the firm within the allotted time frame must file a VAT return. Typically submitted on a quarterly basis,

Tax Return

A tax return, which is submitted via the FTA e-portal, is an account of every financial transaction an organization performs within a certain tax year. The document covers more than just purchases and sells. In addition, imports, exports, and exempt items are included, together with any VAT that is given or received on each transaction. A company must keep track of all its invoices and transaction evidence in order to produce this document.

A taxable person must file a tax return in the United Arab Emirates using the format specified by the Free Trade Agreement. To file a tax return, utilize Form Tax 201. In compliance with the terms of the UAE Tax Law, each taxable organization is required to file the tax return within 28 days after the conclusion of each tax period.

Tax Period

Using the guidelines supplied by the Federal Tax Authority on their VAT certificate, each registered taxpayer in the United Arab Emirates is required to create and submit a VAT return once per tax period, which is either a month or a quarter (three calendar months). The 28th day of the month after the conclusion of the VAT return period is the deadline for filing a VAT return, whether it be quarterly or monthly. The deadline is October 28 if, for example, you are completing a quarterly VAT return for the quarter that spans from July to September. On the other hand, taxpayers whose tax year ends on January 31 and February 28 will have a first return period of four and five months, respectively.

Additionally,The deadline for filing the VAT return or making the associated payment is extended to the first business day after the holiday if the deadline occurs on a weekend or a national holiday. On or before the deadline, the taxpayer must file a “nil” VAT return if they have no commercial transactions to report for the tax period. The FTA site provides information on each taxpayer’s appropriate VAT return filing period. Using their login credentials, taxpayers may access the FTA site and verify the appropriate timeframe for filing their VAT returns.

Contents of VAT Returns

A normal VAT return consists of two elements. The primary portion, which requests information about the taxpayer, sales, purchases, and net VAT owed, is the first one. The second one, which only applies to specific organizations under particular circumstances, is the section on supplementary reporting obligations. This section includes fields related to stock transfers, other implementing states’ VAT payments, and the profit margin program.

Maintaining VAT Records

For firms registered under the VAT Law in the United Arab Emirates, keeping up-to-date VAT books is vital. Maintaining accurate VAT records not only helps one avoid paying needless taxes, but it also keeps one informed about all the information needed to complete a VAT return before the deadline. All VAT-registered taxable entities are required to keep their books of records current for a minimum of five years. The procedure needs combined sales and purchase data, including:

• Purchase/sales invoices
• Notes for debit and credit
• Notes for import and export
• accounting records
• Zero-rated materials or transactions
• Items provided for individual usage