VAT returns should be filed in timely by the taxable person or the person who is authorized to submit VAT Returns on behalf of the taxable person eg. a VAT agent. And VAT returns should be accurate format that explains the details of input tax and output tax and some other information documents required for the VAT returns filing. This blog provides the relevant information about documents required for the VAT returns filing.
Key Documents Required For VAT Return Filing in UAE
As per UAE VAT law taxpayers should file VAT returns with Federal Tax Authority on a quarterly basis, and pay as per the procedures specified in the VAT legislation.
Essential documents required for VAT filing in the UAE include the following:
- Trade License: is the foundation of your company’s legal existence in the United Arab Emirates. To register for VAT and make further filings, businesses must have a valid trading license. Trade license should be renewed before it expires to avoid any issues for the businesses operating in the UAE.
- Tax Registration Certificate: This certificate, which was provided by the Federal Tax Authority (FTA), attests to your company’s VAT registration. It is necessary to file returns and act as your formal identification in the VAT system.
- Tax Invoices: The foundation of your VAT records is your tax invoices. The FTA requires that all details, including supplier and recipient information, invoice date and number, itemized descriptions, taxable amounts, and VAT rates, be included on all invoices issued for taxable supplies and services.
- Purchase Invoices: These are the records of your input VAT or the tax you have to pay on goods you buy for your company. They ought to be kept for audit purposes and have information akin to that of tax invoices.
- Financial Reports and Bank Statements: These offer a comprehensive picture of your company’s economic activities and help with precise VAT computations. A few words that can provide helpful information are the cash flow, balance sheet, and profit and loss statements. Statements should cover the applicable tax period.
- Import Declarations: These serve as documentation of import and VAT payment if your company imports goods that are subject to VAT.
- Export Declarations: These documents simplify export procedures and prove zero-rating of VAT for goods exported.
- Credit Notes and Debit Notes: These make necessary adjustments to previously sent bills for mistakes, cancellations, or returns. They need to be appropriately justified and documented. Records of the Reverse Charge Mechanism: This pertains to specific industries where the recipient is in charge of paying VAT rather than the supplier. Keep up-to-date records of all transactions made using this mechanism.
- Audited Financial Reports: The FTA may require audited reports for specific VAT filings if your company is subject to an external audit.
Additional Requirements
The above-mentioned details have to be furnished for filing VAT returns. Some businesses; however, are to provide specific additional details such as:
- Profit margin scheme
- Goods transferred to GCC implementing states
- Vat paid on personal imports
- Transportation of own goods to other GCC countries
Other Requirements for Completing the VAT Return filing
- Any amount should be in United Arab Emirates Dirhams (AED)
- Insert all amounts to the nearest fills (round off the amounts to nearest fills)
Take a Note: The VAT Return must be received by the Federal Tax Authority no later than the 28th day following the end of the Tax Period or by any other date as directed by the FTA.
Where the due date for the submission of the VAT Return and the corresponding payment falls on a weekend or a national holiday, the deadline for filing the VAT Return or making a payment is extended to the first business day thereafter.
Remember that this list may vary depending on the nature and size of the company and specific tax requirements. It may seem like an easy process to you, but in reality it may be a bit complicated for a taxable person who is not an expert in tax procedures.
Read Also: The Most Common Errors Made While Filing A VAT Return In The UAE
Information Required For VAT Return Filing in UAE
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Details of the Taxable Person
The details that have to be submitted include the tax registration number, name, and address of the taxable person.
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Duration of the VAT Return Period
There’s also the need to submit the details such as the applicable VAT return filing period, the Tax Year-end, VAT return period reference number, and VAT return due date.
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VAT on Output and Sales
Details of taxable supplies with the standard rate, exempt supplies, zero-rated supplies.
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VAT on Input and Expenses
Submit the details of expenses /purchases for which a taxable person has paid VAT at a 5% rate which is the standard.
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The Total Value of Tax and Payable Tax
This indicates the VAT due or payable for the return period.
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Net VAT Due
Submit also the details regarding the VAT payable and VAT recoverable. The VAT payable mentions the tax that is due to the tax authority during the tax period whereas the VAT recoverable states the total value of input tax that is recoverable for the tax period.
Failing to Comply with the UAE VAT Return Filing Requirements
Several significant administrative penalties for VAT associated with filing tax returns include Not submitting the UAE VAT return on time. VAT registrants who neglect to file their VAT returns within the FTA-mandated timeframe will be subject to a penalty of AED 1,000. Furthermore, the VAT registrant will be subject to an AED 2,000 fine if they repeat the same offence within 24 months. To avoid such hefty fines and penalties, you must contact the VAT consultants in the UAE to ensure the VAT filing requirements are intact as per the FTA norms.
How “VAT Registration UAE” can Assist
Our VAT consultants dedicated to simplifying the VAT filing process. The ongoing commitment to compliance inherent in the VAT registration procedure ensures that businesses maintain record-keeping practices in accordance with the VAT law. Therefore, contact us today and we shall ne glad to assist you.
As certified tax agents, the consultants and experts of “VAT Registration UAE” provide all tax services and submit the tax return smoothly and conveniently, avoiding any fines that may result from delaying or submitting the return incorrectly. Request a quote for our services now.
Contact us to guarantee a seamless and legal VAT filing and maintaining the necessary paperwork,, keep in mind that timely and accurate submissions not only help you avoid penalties but also show your dedication to financial responsibility.
Read Also: Guide to VAT Filing in the UAE
