At the end of each tax period, every taxable person in the UAE is required to file a VAT return to the Federal Tax Authority (FTA). Article 64 of the Executive Regulations of the VAT Decree-Law, the FTA should receive the VAT Return no later than the 28th day following the end of the Tax Period. The Standard Tax Period for filing the VAT Return in the UAE is also defined in the Regulations as a three-calendar-month period that ends on the date determined by the Authority.
Non-filing or late filing of VAT returns can result in severe penalties, therefore businesses should seek advice from the top tax advisors in Dubai, UAE to ensure compliance.
What Information Should Be Included In a Tax Return?
According to the UAE VAT Law, the VAT return must include all relevant details as requested by the FTA. Registered tax agents in Dubai, on the other hand, advise that the following information be included in the tax return:
- The name, address and the TRN of the Registrant.
- Tax Period related to the VAT Return filing
- The date of submission of UAE VAT Return
- Value of Taxable Supplies made by the Person in the Tax Period and the Output Tax charged and Emirates-wise
- Value of Taxable Supplies subject to the zero rates made by the Person in the Tax Period
- The value of Exempt Supplies made by the Person in the Tax Period.
- The value of any supplies subject to Clauses (1) and (3) of Article (48) of the Decree-Law (Reverse Charge)
- The value of expenses incurred in respect of which the Person seeks to recover Input Tax and the amount of Recoverable Tax.
- The Payable Tax for the Tax Period
- The total value of Due Tax and Recoverable Tax for the Tax Period.
How do I submit a VAT return to the Federal Tax Authority in the Dubai, United Arab Emirates?
The submission of a UAE VAT return is an online process that can only be done through the FTA’s portal. The FTA does not accept any offline VAT return submission in the UAE at this time. The VAT 201 form must be used to file the return by entities that have registered for VAT in the UAE. As soon as the tax period ends, all VAT registrants can utilize the VAT 201 form.
Registered tax agents in Dubai will file the tax returns on behalf of the taxable persons. Vat registrants must check the following items after logging into the FTA site and selecting the VAT 201 form.
- Standard Rated Supplies
- Tax refunds that are given to tourists
- Zero-rated Supplies
- Supplies subject to Reverse Charge Mechanism Provisions
- Exempt Supplies
- Goods imported into the UAE
- Adjustments to the goods imported into the UAE
- Standard-rated expenses
- Refund of recoverable tax
- Calculation of due tax
Consequences of Failure to Comply with UAE VAT Requirements for Filing Tax Returns
Failure to comply with the requirements governing the submission of UAE VAT Returns will result in stiff penalties from the FTA. The following are some of the most serious VAT administrative fines related to the submission of tax returns:
Filing Incorrect VAT Return:
Incorrect filing of VAT return by the tax registrant is liable for a penalty in the UAE. Two types of penalties are applicable in this case.
- A fixed penalty of AED 3000 for the first time and AED 5000 for the second time
- A Percentage based penalty on the amount unpaid to the FTA due to the error
Failing to Voluntary Disclose Errors
A taxable person who fails to voluntary disclose errors in the tax return will attract
- Fixed a penalty of AED 3000 for the first time & AED 5000 for the second time
- 50% of the amount unpaid to the Authority due to the error resulting in a tax benefit for the Person/Taxpayer
The Support of Registered VAT Consultants in Dubai, United Arab Emirates
Parker Russell UAE is one of the most experienced accounting and auditing organizations in Dubai, UAE, that provides prompt VAT return filing services. Parker Russell’s registered agent are highly qualified to execute the UAE VAT return filing process for businesses of all types and size.
Parker Russell UAE is a certified tax agent in the United Arab Emirates. Our Tax Experts have handled and regulated a variety of circumstances and provided the best available solutions to businesses to ensure that they continue to function in the most efficient and effective manner possible.
For our clients, only the best will do, and our considerable experience in the UAE will ensure that your company receives the best and most timely services without sacrificing quality.
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