Maintain your tax compliance through Filings.ae platform at an affordable price. Get support from Experienced Accountants for bookkeeping, financial statement preparation, VAT and Corporate Tax filing.
Maintain your tax compliance through Filings.ae platform at an affordable price. Get support from Experienced Accountants for bookkeeping, financial statement preparation, VAT and Corporate Tax filing.
Maintain your tax compliance through Filings.ae platform at an affordable price. Get support from Experienced Accountants for bookkeeping, financial statement preparation, VAT and Corporate Tax filing.
Manage your business and track services |
Manage your business and track services |
Manage your business and track services |
The United Arab Emirates (UAE) implemented Value Added Tax (VAT) in 2018, requiring businesses exceeding the registration threshold or voluntarily opting-in to register for VAT. VAT compliance includes filing periodic VAT returns, which can be a complex process for businesses unfamiliar with the system. This comprehensive checklist aims to guide businesses in the UAE through the VAT return preparation process, ensuring accuracy and timely submission.
Filings.ae streamlines your VAT return filing process with expert assistance!!
A VAT return in UAE is a summary report filed by registered businesses detailing their sales and purchases with VAT (Value Added Tax) for a specific tax period. It shows the amount of VAT collected from customers (output tax) and the amount of VAT paid on purchases (input tax). The report determines your final VAT liability, which is either paid to the Federal Tax Authority (FTA) or claimed back if your input tax is higher. You must file the VAT return electronically through the FTA portal typically within 28 days of the tax period ending.
Before diving into the checklist, it's crucial to understand the core aspects of VAT return filing in the UAE:
Gathering the necessary documents well in advance is critical for a smooth VAT return preparation process. Here's what you'll need:
With a clear understanding of filing requirements and documents in hand, proceed with the following checklist to prepare your VAT return:
Confirm the relevant tax period for which you're filing the VAT return. Refer to your taxable supplies in the preceding year to determine the applicable filing frequency (monthly, quarterly, or biannually).
Assemble all the documents mentioned earlier, ensuring they are well-organized and readily accessible. This includes sales and purchase invoices, debit and credit notes, bank statements, customs declarations (if applicable), and prior VAT return filings.
Reconcile your bank statements with your accounting records to identify and rectify any discrepancies. This ensures all financial transactions are accurately reflected in your books.
Classify your transactions into taxable supplies, exempt supplies, reverse charges, and non-taxable supplies. Understanding the VAT treatment of each transaction is crucial for accurate reporting.
Calculate the VAT amount payable on your taxable supplies at the standard VAT rate (5%) or zero-rated supplies (if applicable). Refer to your sales invoices for the total value of taxable supplies.
Review your purchase invoices and other expense receipts to identify recoverable input VAT on business-related expenses. Ensure these expenses are incurred for taxable supplies and meet the FTA's eligibility criteria.
Subtract the total recoverable input VAT from the total output VAT (VAT on taxable supplies) to arrive at the net VAT payable to the FTA. If the calculation results in a negative figure, you might be eligible for a VAT refund.
Access the FTA's EmTax portal and log in using your credentials. Navigate to the VAT return filing section and complete Form 201 electronically. The form comprises various sections for reporting details such as taxable supplies, exempt supplies, reverse charges, input VAT claimed, net tax payable, and any adjustments.
Maintain copies of the submitted VAT return form and all supporting documents for your business records. The FTA recommends a minimum retention period of five years for VAT-related documents.
In conclusion, filing VAT returns in UAE is essential for businesses registered for Value Added Tax. By following this checklist and understanding the key requirements - filing frequency, deadlines, and document gathering - businesses can ensure accurate and timely VAT return submissions, avoiding penalties and maintaining VAT compliance. Remember, you can file electronically through the FTA portal.
Let Filings.ae prepare all the requirements and file your VAT returns without delay!!
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