File VAT Return in UAE

عند تقديم إقرار Vat Return المضافة في دولة الإمارات العربية المتحدة، يتم إنتاج بياناتك مثل اسمك وعنوانك ورقم TRN وفترة إقرار VAT Return المضافة الحالية ونهاية السنة الضريبية ورقم مرجع فترة إقرار VAT return المضافة وتاريخ استحقاق تقديم إقرار ضريبة القيمة المضافة تلقائيًا.

At the same time, the following items should be written down:

• The payment amount must be in UAE Dirhams (AED).

• Payable amounts should be rounded off.

• Fill out all required fields.

• If no amount is specified, enter ‘0’ (zero).

• Provide taxable supply data by emirate.
The necessity of precise and timely VAT filing.

• Avoids fines.

• Input tax reimbursement.

• Reimbursement of tax on imported items using the Reverse Charge Mechanism.

• Minimizes or eliminates mistakes in VAT filing.

• Boosts corporate credibility and goodwill.

Details should be provided under Taxable Supplies

• For standard-rated supplies.
Include the following information for standard-rated supplies: –

• VAT applies to sales of goods and services.

• Sales of discounted products and services (after reducing the discount value).

• Deposits accepted as partial payment.

• Inter-company sales (without Tax Group registration)

• Sales of business properties.

• Deemed supplies exceed appropriate limitations.

• Reimbursements for client expenditures (recharges).

• The total value of items sold under the profit margin plan.

• Goods sold inside designated zones are spent within the zone.

• Value reduction owing to credit notes issued.

• Errors can be corrected for past tax periods.
The following things should be excluded: –
• Sales of goods located within designated zones and not consumed within the designated zone
• Out of scope supplies
• Zero-rated supplies, such as exports of goods or services outside the UAE
• Zero-rated educational services
• Zero-rated healthcare services
• Disbursements
• Standard Rated Expenses (Purchase of Goods & Services)

Include the following information for standard-rated expenses:

• Business purchases from VAT-registered suppliers are subject to VAT.

• Discounted goods and services.

• The entire amount paid for the items sold under the profit margin program.

• You can claim tax on goods or services acquired before registering. The claim must be lodged on your first VAT return.

• Reduced value owing to credit notes from suppliers.

• You can repair errors from prior tax months.
The following items should be excluded from standard-rated expenses:

• Exempted or zero-rated purchases.

• Expenses for making exempt or non-business supplies.

• Goods purchased in defined zones but not eaten or brought into the UAE mainland.

• Purchases by members of the same tax group

• Received penalties and penalty costs, including traffic fines.

• Wages and salaries.

• Expenses with prohibited input taxes.

• Zero-rated supplies.

Include the following information for zero-rated supplies: –

• Exports of products and services beyond the UAE.

• Local supply of educational services and related goods and services.

• Local supply of healthcare services, including preventative and basic care, as well as related commodities and services.

• Import or supply of investment precious metals.

• Supply of crude oil and natural gas.

• Exempt Supplies.
Include the following information for exempt rated supplies:

• Local supply of financial services.

• Sales or leases of residential structures, excluding those entitled to 0% VAT rates.

• Ample raw land.

• Provides local passenger transportation.

• Supplies are subject to reverse charge.

• Services from international vendors are subject to ordinary VAT rates.

• Services purchased from international vendors with zero VAT rates.

• Received goods subject to reverse charge provisions but not declared to UAE customs.

• Local supplies are subject to a reverse charge.

• Reporting previously reported imports into the UAE through customs declarations.

• Importing items from agents on behalf of unregistered individuals.
Some crucial points to take note of:

• Name of the VAT filing form. Return is VAT 201.

• Name of the claim form. Input refund: VAT 311.

• If there are no business transactions during the Tax Period, file a “nil” VAT Return by the due date.

• Taxable Persons must account for production tax in their VAT Return for the relevant Tax Period.

• Supplies inside the Designated Zone, as well as out-of-scope supplies and expenditures, do not need to be recorded on the VAT return.

• Adjust the pre-populated VAT amount for imported items in case of errors at customs.
• Failure to pay by the due date may incur a late payment penalty, which includes:

• A 2% penalty will be charged for late Payable Tax payments.

• On the seventh day after the payment deadline, a 4% penalty is applied to any outstanding tax balance.

• A daily penalty of 1% will be applied for any outstanding balances for one month after the payment deadline, with a maximum of 300%.

Once the VAT Return Form filling procedure is completed, the net amount payable will be determined automatically. If the due value is negative, you can request a refund or carry the amount forward to the following tax period.