VAT Return Filing in UAE.
To help businesses meet their VAT obligations to the Federal Tax Authority (FTA) in the UAE, let's break down the VAT return filing process:
Businesses in the UAE typically submit VAT returns on a quarterly basis. These correspond to January -March, April - June, July - September and October - December.
Accessing the VAT Return Form:
You can access the VAT return form through the FTA e-Services portal on UAE official website. If you don't have an account, need to create one. Once logged in, navigate to the section related to VAT returns to access the form. Fill in all the necessary details, such as sales, purchases, input tax, output tax, and adjustments.
Sales and Output Tax:
Businesses should report all their taxable sales during the reporting period. This includes sales subject to the standard VAT rate, zero-rated supplies, and exempt supplies. The standard VAT rate in the UAE is currently 5%. Zero-rated supplies have a VAT rate of 0%, while exempt supplies aren't subject to VAT.
Purchases and Input Tax:
Report all eligible purchases made during the reporting period. Input tax is the VAT paid on these purchases, which can be offset against the output tax liability. Make sure you have valid VAT invoices for input tax recovery.
Adjustments and Corrections:
You have the opportunity to make adjustments or corrections to previously reported figures. This includes fixing errors in sales or purchase values, modifying input tax claims, adding omitted transactions, or addressing specific situations.
VAT Liability Calculation:
Calculate the VAT liability by subtracting input tax from output tax. If input tax exceeds output tax, you may be entitled to a refund from the FTA. Accuracy is crucial to ensure compliance.
Submission and Payment:
Submit the VAT return form through the FTA e-Services portal, ensuring accuracy and adherence to deadlines set by the FTA. If there's a VAT liability, make the payment within the specified timeframe through approved channels to avoid penalties.
Maintain accurate records of all transactions, VAT invoices, VAT returns, and related documents for at least five years. Organize these records for easy access and compliance with potential audits.
If you need assistance with VAT return filing, Al-wahat Accounts and Internal Audit Services can provide expert support. Their team ensures accurate preparation of VAT returns, meets deadlines, and handles adjustments or corrections. Feel free to reach out to them for personalized assistance.
This simplified explanation should make it easier for businesses in the UAE to understand and comply with VAT return filing requirements.