VAT Return Filing Dubai

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VAT Return Filing Services

In Dubai, we provide quality and timely VAT return filing services on a monthly and quarterly basis. To submit VAT returns online, use the FTA e-Services portal. Business that fail to file VAT returns by the due date or submit incorrect VAT returns will be subject to VAT audits and VAT fines imposed by the FTA. VAT201 is the form used to submit VAT returns. All firms in the UAE are obliged to have full VAT compliance and to follow all of the FTA’s laws and regulations, such as timely VAT registration and the completion of proper VAT invoices, and maintaining records through proper bookkeeping and accounting.

As a minimum, you will need to file a VAT return every three months. Nevertheless, businesses may need to file VAT returns on a monthly basis in some cases. Tax certificates will specify the period during which you need to file your VAT returns. VAT-registered businesses must file their VAT returns within the deadline established by the Federal Tax Authority (FTA).

Filing VAT Returns in the UAE: Conditions & Requirements

At the end of each tax period, taxable persons in the UAE are required to file a VAT return with the Federal Tax Authority (FTA). The VAT Return should be received by the FTA no later than 28 days after the end of the tax period, according to Article 64 of the VAT Decree-Law. The Standard Tax Period for filing the VAT Return in the UAE is three calendar months, ending on the date determined by the Authority, according to the laws. The VAT returns must be filed by any taxable person who has registered for UAE VAT. Businesses that do not file or file late VAT returns face serious consequences, which is why they should consult the best tax agents in Dubai, UAE, to ensure compliance.

What Should a Tax Return Contain?

As per the UAE VAT Law, a VAT return has to contain all the necessary details as requested by the FTA. The following information, however, should be included in the tax return, according to registered tax agents in Dubai:

  • ● Registrant’s name, address, and TRN
  • ● Filing the VAT Return during the tax period
  • ● Date by which UAE VAT returns must be submitted
  • ● Taxable Supplies made by the Person and the Output Tax charged and category-by-category
  • ● Taxable Supplies made by the Person during the Tax Period that are subject to the zero rate
  • ● During the Tax Period, the value of the Person’s Exempt Supplies.
  • ● Clauses (1) and (3) of Article (48) of the Decree-Law (Reverse Charge) apply to any supplies
  • ● The amount of Input Tax to be recovered and the amount of Recoverable Tax.
  • ● Taxes due and refundable for the tax period.
  • ● Tax Payable for the Tax Period
business setup in dubai

business setup in dubai
How to File UAE VAT Return to Federal Tax Authority?

Filing the vat returns in UAE is an online process, which is available only through FTA’s portal. There is no offline VAT return filing available through the FTA in the UAE yet. In the UAE, entities who are registered for VAT are required to file VAT 201 returns. As soon as the tax period ends, all VAT registrants can use the VAT 201 form. The taxable persons’ tax returns will be filed by registered tax agents in Dubai. The VAT registrants need to verify the following after logging into the FTA portal and selecting the VAT 201 form:

  • ● Standard Rated Supplies
  • ● Tax refunds that are given to tourists
  • ● Supplies subject to Reverse Charge Mechanism Provisions
  • ● Zero-rated Supplies
  • ● Exempt Supplies
  • ● Goods imported into the UAE
  • ● Adjustments to the goods imported into the UAE
  • ● Standard-rated expenses
  • ● Calculation of due tax
  • ● Refund of recoverable tax
Failure to File UAE VAT Return on Time

You will be subject to hefty penalties by the FTA if you fail to comply with the UAE VAT Return filing laws. VAT administrative penalties include:

In the event the VAT registrant fails to file VAT Returns in UAE within the stipulated timeframe fixed by the FTA, a penalty of AED 1,000 will be imposed. Furthermore, if the VAT registrant repeats the offence within 24 months, a penalty of AED 2,000 will be imposed.

Consequences of Non-Compliance with UAE VAT Return Filing Requirements

You will be subject to hefty penalties by the FTA if you fail to comply with the UAE VAT Return filing laws. Some of the major VAT administrative penalties are as follows:

Late filing of UAE VAT returns

In the event the VAT registrant fails to file VAT Return within the stipulated timeframe fixed by the FTA, a penalty of AED 1,000 will be imposed. In addition, the VAT registrant will be liable for a penalty of AED 2,000 if the offence is repeated within 24 months.

Filing Incorrect VAT Return

A penalty may be imposed if the tax registrant fails to file a VAT return correctly in the UAE. Penalties may be imposed in two forms.

  • ● Penalties of AED 3000 for the first offense and AED 5000 for the second offense
  • ● If the FTA was not paid because of the error, it would be penalized based on a percentage
business setup in dubai

business setup in dubai
Failing to Voluntary Disclose Errors
  • ● Taxpayers who fail to voluntarily disclose errors in their tax returns will be penalized
  • ● For the first time, we have fixed a penalty of AED 3,000, and for the second time we have fixed a penalty of AED 5,000
  • ● The Authority will retain 50% of the amount unpaid due to the error resulting in a tax benefit for the Person/Taxpayer
The Assistance of Registered VAT Consultants in Dubai, UAE

Tax return filing in Dubai, UAE is a complex process since errors or other forms of non-compliance can result in penalties. To ensure compliance while submitting a VAT return in Dubai, the taxable person must be well-versed in the tax period and other requirements mandated by the FTA. Nonetheless, registering for VAT in Dubai requires the assistance of registered tax agents to navigate the intricacies of the process.

Providing efficient VAT return filing services in Dubai, UAE, we are one of the most experienced accounting and auditing firms. Businesses of all sizes and types can rely on our registered agents in Dubai to complete the UAE VAT return filing process. In addition, we offer impeccable services of VAT registration, deregistration, VAT reconsideration, etc. Consult with our vat return filing company Dubai in order to avoid non-compliance of VAT in the UAE.

Please contact us if you require any assistance.