VAT Filing and Payments in UAE

This guide explains the key aspects of VAT compliance, with a focus on filing and payments to streamline processes for businesses based in the UAE.

VAT Registration UAE” consultants streamline operations by providing professional taxation services. Contact our VAT experienced consultants to ensure a smooth and hassle-free VAT compliance.

Registration Threshold

The initial step towards VAT compliance involves registering with the Federal Tax Authority (FTA). Businesses exceeding AED 375,000 in taxable turnover within the past 12 months or expecting to do so in the next 30 days are mandated to register. Additionally, businesses with an annual turnover surpassing AED 187,500 may opt for voluntary registration. The process is straightforward, and VAT experts in the UAE can facilitate registration proccess of your business with the FTA.

If you want to know more about VAT registration, Please navigate to How to register for VAT in the UAE for a New Company.

VAT Periods and Filing Deadlines

Flexibility is a notable feature of the UAE VAT system, allowing companies to align the frequency of their reports with operational needs. Businesses can opt for quarterly, annual, or monthly tax periods based on transaction volume and preferences. With a 28-day window from the end of the tax period, businesses must complete both VAT filing and payment. Noncompliance with deadlines will result in penalties and fines imposed by the Federal Tax Authority.

That’s why uou need strategically scheduling tax periods and aligning filing deadlines for ensuring compliance and avoiding financial consequences.

“VAT Registration UAE”consultants play a vital role in assisting businesses in timely and accurate VAT submissions.

VAT Filing Procedure in the UAE

Mandatory electronic filing of all VAT returns is facilitated through the FTA portal. The process involves:

  • Information Gathering: Compiling total sales and purchases, input and output VAT, taxable and exempt supplies, and adjustments.
  • Portal Access: Logging in with the Taxpayer Identification Number (TIN) and password.
  • Return Completion: Entering business and tax period details, along with sales, purchase,

and VAT figures using the online form.

  • Verification and Submission: Thoroughly reviewing and confirming data before electronically submitting the return.
  • Payment: Electronically making VAT payments through online banking, debit/credit cards, or e-wallets via the portal.

Recordkeeping and Software for VAT Filing in the UAE

Accurate financial recordkeeping for a minimum of five years is a fundamental requirement for VAT compliance in the UAE. Businesses generating over AED 150 million in taxable revenue annually must utilize FTA-certified Tax Accounting Software (TAS) for VAT filings. TAS expedites recordkeeping, ensures automated and accurate VAT computations, and enhances the overall efficiency of managing financial data. Compliance with recordkeeping regulations and the use of certified software demonstrate a commitment to regulatory compliance and foster a stable financial framework.

Remittances and Documentation for VAT Filing in the UAE

Key considerations for remittances and documentation in VAT filing and compliance include:

  • Using available payment methods for electronic VAT payments through the FTA portal.
  • Adhering to specific reporting formats and templates mandated by the FTA for various VAT transactions.
  • Potential penalties and more stringent compliance requirements for noncompliance with reporting requirements.

Consequences of Noncompliance for VAT Filing in the UAE

Failure to comply with FTA standards for VAT may lead to:

  • Fines and penalties
  • Interest on unpaid VAT amounts
  • FTA audits and investigations
  • Legal action, including the possibility of company closure

To mitigate these consequences, businesses must adhere to rules and regulations, seeking assistance from VAT consultants in the UAE when needed.

VAT Compliance Checklist for Businesses in the UAE

A comprehensive VAT compliance checklist for businesses includes:

  • Mandatory VAT registration for annual revenue exceeding AED 375,000.
  • Selection and registration for a preferred tax period.
  • Maintenance of up-to-date records for all financial transactions.
  • Electronic filing and payment of VAT through the FTA portal.
  • Adherence to filing and payment deadlines.
  • Staying informed about the latest VAT laws and practices.
  • Seeking professional guidance when necessary.

Read More: VAT Return Preparation Expert’s Checklist

Seek the Expert Services of VAT Registration UAE

Engaging VAT registration services in the UAE is a strategic decision for businesses navigating VAT compliance. These experts ensure timely adherence to filing deadlines, interpret complex laws, and provide tailored advice based on extensive knowledge of local regulations. Their support enables companies to develop proactive VAT strategies, maintain accurate records, and navigate audits successfully. Investing in reliable tax advisors guarantees regulatory compliance, allowing businesses to focus confidently on their core operations. Thus, contact us today and we shall be glad to assist you.