VAT Return Filing in Dubai, UAE: Requirements & Conditions

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 states that 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 defined in the Regulations as a three-calendar-month period ending on the date determined by the Authority.

Non-filing or late filing of VAT returns can result in severe penalties. To ensure compliance, businesses should seek advice from the top tax advisors in Dubai, UAE.

What Information Should Be Included in a VAT Return?

According to the UAE VAT Law, the VAT return must include all relevant details requested by the FTA. Registered tax agents in Dubai advise that the following information should be included:

The name, address, and TRN of the registrant.
The tax period related to the VAT return filing.
The date of submission of the UAE VAT return.
The value of taxable supplies made during the tax period and the output tax charged, specified by emirates.
The value of taxable supplies subject to zero rates.
The value of exempt supplies.
The value of supplies subject to reverse charge provisions under Clauses (1) and (3) of Article (48) of the Decree-Law.
The value of expenses for which input tax recovery is sought, along with the recoverable tax amount.
The payable tax for the tax period.
The total due tax and recoverable tax for the tax period.

How to Submit a VAT Return to the Federal Tax Authority in Dubai?

The submission of a UAE VAT return is an online process through the FTA’s portal. Offline VAT return submissions are not accepted. Entities registered for VAT must use the VAT 201 form. Once the tax period ends, VAT registrants can utilize this form.

Registered tax agents in Dubai assist in filing tax returns on behalf of taxable persons. After logging into the FTA site and selecting the VAT 201 form, registrants should check these items:

Standard-rated supplies.
Tax refunds for tourists.
Zero-rated supplies.
Supplies under the reverse charge mechanism.
Exempt supplies.
Goods imported into the UAE.
Adjustments to imported goods.
Standard-rated expenses.
Refundable recoverable tax.
Calculation of due tax.

Consequences of Failure to Comply with UAE VAT Requirements

Failure to adhere to UAE VAT filing requirements can lead to significant penalties. Some common fines include:

Filing Incorrect VAT Return

AED 3000 penalty for the first error, increasing to AED 5000 for subsequent errors.
A percentage-based penalty on the unpaid amount due to the error.

Failing to Voluntarily Disclose Errors

AED 3000 penalty for the first instance, increasing to AED 5000 for subsequent occurrences.
50% of the unpaid amount due to errors resulting in a tax benefit for the taxpayer.

Support from Registered VAT Consultants in Dubai

Parker Russell UAE, one of Dubai’s most experienced accounting and auditing organizations, provides prompt VAT return filing services. Their certified tax agents ensure businesses of all types and sizes comply efficiently and effectively with VAT regulations.

With extensive experience in the UAE, Parker Russell UAE guarantees timely and quality services tailored to client needs. Their expertise ensures businesses function smoothly while adhering to tax laws.

For more information, visit our VAT Return Filing page.
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