VAT FILING
Filing VAT returns in the UAE is a critical compliance requirement for businesses registered for VAT. Here’s an overview of the process and important considerations:
What is VAT Filing?
VAT filing is the process through which businesses submit a VAT return form to the Federal Tax Authority (FTA). This form reports the amount of VAT collected from customers and the input tax credits that can be claimed for VAT paid on business-related purchases. The difference between these amounts is the VAT payable or refundable for the period
Steps to File VAT Returns
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Access the FTA Portal: Begin by visiting the FTA’s official e-services portal, EmaraTax. You will need to log in using your registered credentials​ (CompanyFinder UAE)​​ (UAE Government)​.
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Prepare Your VAT Return: Gather all necessary documentation related to your sales and purchases for the tax period. You will need to provide detailed information about your output and input VAT to accurately calculate your VAT liability.
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Enter VAT Return Details: On the portal, navigate to the VAT section and select the option to file a VAT return. Enter all required details as per the VAT return form, which includes information on your total sales, VAT collected, and input VAT credits​ (FTA UAE)​.
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Review and Submit: Ensure all information is correct and complete. Once reviewed, submit the VAT return through the portal.
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Payment of VAT Liability: If your output VAT exceeds your input VAT, you will need to pay the difference to the FTA. This is typically due within 28 days from the end of the tax period
Important Considerations
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Record Keeping: Maintain accurate and comprehensive records of all transactions, as these will support the figures reported in your VAT returns.
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Filing Deadlines: VAT returns are generally due quarterly for businesses with an annual turnover below AED 150 million, and monthly for businesses with a turnover of AED 150 million or more. The FTA may assign different tax periods for specific types of businesses​ (UAE Government)​.
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Penalties: Late filing or incorrect submissions can result in penalties. Ensure timely and accurate filing to avoid these fines
Why is VAT Filing Important?
Filing VAT returns accurately and on time ensures compliance with UAE tax laws and helps the FTA to monitor and collect VAT effectively. It also allows businesses to manage their cash flows more effectively by accurately calculating their tax liabilities or refunds​