Vat Return Filing in Dubai UAE
VAT return filing is a statutory compliance for businesses registered under the Value Added Tax (VAT) system in UAE. It means reporting to the Federal Tax Authority (FTA) the VAT collected on sales (output tax) and the VAT paid on purchases (input tax). This is to ensure that businesses account accurately for the VAT that they owe or are to reclaim and comply with the tax regulations of the UAE.
Who Needs to File a VAT Return in the UAE?
In the UAE, the obligation to file VAT returns applies to:
- Taxable Persons: Any individual or entity conducting business in the UAE that is registered or required to register for VAT. This includes:
- Businesses with taxable supplies and imports exceeding the mandatory registration threshold of AED 375,000 per annum.
- Businesses that opt for voluntary registration with supplies and imports below the mandatory threshold but above the voluntary registration threshold of AED 187,500 per annum.
Even if a registered business has not conducted any taxable transactions during a tax period, it is still required to submit a ‘nil’ VAT return to the FTA. The standard tax period is:
- Quarterly for businesses with an annual turnover below AED150 million
- Monthly for businesses with an annual turnover of AED150 million or more.
The FTA may, at its choice, assign a different tax period for certain type of businesses.
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VAT Return Filing Process in UAE
Filing a VAT return in the UAE involves several key steps:
- Access the FTA e-Services Portal: Use your credentials to access the portal of FTA e-Services (through the FTA portal eservices.tax.gov.ae) to log in. Go to the VAT section and click VAT 201 – New VAT Return to begin filling the return.
- Complete the VAT Return Form (VAT 201): Fill in all the necessary information accurately as follows:
- The sales and all other outputs, as well as expenses and all other inputs as follows:
- The net amounts, excluding VAT.
- The VAT amount.
- The system will then calculate the payable or refundable tax.
Make sure that all amounts are precise and supported by relevant documentation.
- Review and Submit: Carefully review all of the information entered on the form after completing all mandatory fields and confirming the declaration. Once you confirm that all of the information included in the VAT Return is correct, click on the Submit button.
- Make Payment: If the return indicates a payable amount, proceed to the ‘My Payments’ section on the FTA portal to settle the tax due. Payment methods include:
- E-Dirham or Credit Card: Immediate online payment through the portal.
Bank Transfer (GIBAN): Transfer funds using the unique Generated International Bank Account Number assigned to your account.
Documents Required for VAT Return Filing in UAE
- Sales Invoices: Tax invoices issued to customers, Credit notes issued for discounts/returns
- Purchase Invoices: Tax invoices received from suppliers, Credit notes received from suppliers Like This
- VAT Calculation: Total Output VAT (Sales VAT), Total Input VAT (Purchase VAT), Net VAT Payable/Refundable
- VAT Ledger & Accounting Records: Sales & purchase ledger, VAT account statements, General ledger entries
- Bank Statements: Monthly bank transaction records
- Import & Customs Documents: Customs declarations, VAT payment receipts (Reverse Charge Mechanism – RCM)
- Business Expense Reports: Rent & utilities invoices, Advertising & marketing invoices, Office supplies invoices
- Export Documentation: Shipping documents (Bill of Lading, Airway Bill), Customs declarations
- Tax Registration Number (TRN) Certificate: FTA-issued VAT registration certificate
- Adjustments & Corrections: Corrections to previous VAT returns
- FTA VAT Return Form (VAT201): Online VAT201 form submission on FTA portal
