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File VAT Return in UAE

VAT Return Filing Services in UAE

Filing a VAT return is required for all persons who are registered for VAT, regardless of the kind of sales, purchases, tax, VAT registration, etc. AL MERAK’S assists individuals and businesses in filing VAT returns in the UAE and offers a variety of additional VAT services. AL MERAK’S provides the finest information and help for your VAT Return in line with UAE VAT law, ensuring error-free filing and correct management of accounting documentation linked to each tax filing.

VAT Filing in UAE

VAT Return filing is the formal tax return that registered businesses must send to the Federal Tax Authority by the due date. It must be completed by the taxable Person at regular intervals in accordance with his/her tax term. The VAT Return Filing Form records the output tax owed and the input tax to be recovered, as well as certain additional format-specific information. Filing a VAT return is not only confirmation of your organization’s existence, but it may also protect your business by offering legal certainty and benefits during the tax payment process, preventing financial loss. AL MERAK’S provides VAT return filing services in the UAE, giving exceptional VAT services to assist you develop your business.

The VAT return form ‘VAT 201’ is available on the FTA site. Log in to this portal with your password and registered login.

Tax Period for VAT Return Filing as per FTA

• In the UAE, VAT returns are submitted by the 28th of the month after the tax period, unless otherwise stated by the FTA.

• Payments must be received by the FTA before the specified date.
• Payments should be made by the same deadline.
• The limit will extend to next working day, if last date falls on holiday.
• A Taxable Person’s regular tax term is three calendar months.
• The FTA may apply alternative tax periods to certain groups of Taxable Persons.

• The FTA may apply alternative tax periods to certain groups of Taxable Persons.

• Certain tax periods may be established monthly.

• The FTA may approve requests for an extension of the tax filing period.

Individuals or firms that fail to preserve proper transaction records may risk an AED 10,000 penalty. The penalty for repeated noncompliance within 24 months will be raised to AED 2,000 per violation.

Things to be taken care while filing your VAT return

When you file a VAT Return in the UAE, your data such as your name, address, TRN, current VAT Return Period, Tax year-end, VAT return period reference number, and VAT Return submission due date are automatically produced.

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.

AL MERAK’S’s Role in VAT Return Filing

AL MERAK’S VAT Return Filing Services in UAE are customized to match the needs of our clients. We comprehend your company operations, maintain openness throughout all processes, manage to reduce your expenses, and eventually maximize your profits through improved accounting and tax procedures. We visit our client’s workplace on a regular basis to gather the relevant documentation for VAT return filing.

The AL MERAK’S offers:

• Improved advice and help for VAT returns in accordance with UAE VAT rules.

• Proper employee training.

• Ensured accurate VAT filing with sufficient accounting backup.

• Document supporting documentation for each tax filing.

• Assist with correct tax planning.

We also gives expert consultation services to the corporate world in the UAE, including CFO Services, Auditing Services, Accounting & Bookkeeping Services, Due Diligence Services, and Accounting Software Services.

If you have any questions regarding VAT Return Filing in the UAE or your present business, please contact us freely. AL MERAK’S is there for you!

Our specialists will provide you with a one-hour free consultation to eliminate your doubts!

faq

Frequently Asked Questions on File VAT Return in Dubai

What is the last date for submission VAT return in the UAE?

The TAX return is due on 28th of every TAX period. If the deadline occurs on the 28th, the date will extend to the following day of operation.

I supply items that are chargeable at 5% VAT and export them to several countries. How should I declare the information on the VAT return form?

The VAT return form has distinct sections for standard-rated (5% VAT) and zero-rated goods. In your scenario, the 5% taxable supplies will be classified as 'Standard Rated Supplies' for your emirate and exports as 'Zero-Rated Supplies'. Also, some requirements must be satisfied if exports are to be considered for zero-rate VAT.

My input tax amount exceeds the output tax. How will I amend and report in my VAT return?

In the aforesaid instance, VAT will be refunded. You can select either option. (1) carry forward the refundable amount to the next VAT return period, (2) seek reimbursement - FTA would take 20 working days to submit the application.

What happened if the VAT return not filed?

If the VAT return is not filed. It will result in heavy fines being issued by the authorities.

What should I do if there are no sales or transactions during the tax period?

If no business activity done within the related tax period, you are mandatory to file a NIL return by the due date to prevent heavy fines.

What are benefits business will get after registering for VAT?

Businesses who will register for VAT may claim the VAT submitted on costs or purchases.

Who is responsible for reporting monthly and quarterly returns?

Small and medium taxpayers need to submit quarterly filings. But Large taxpayers need to file monthly returns.

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