VALUE ADDED TAX RETURN FILING PROCESS IN THE UAE

The VAT has already been introduced to the UAE since 1st January 2018 and crossing distinct phases, with time moving ahead. Companies were busy getting their registrations done and now are moving towards their first return filing that would strike shortly. Individuals and businesses who have registered themselves for VAT are required to submit VAT return in the UAE in a prescribed format as given by FTA and on a regular basis. The duration of filing the returns is quarterly in most of the cases but in some cases, it's monthly also.

Let’s first understand what a VAT return is and why it is important to file;

VAT return is a periodic statement that shows how much tax is charged during that period, which is referred to as output tax and how much tax is paid which is referred to as input tax. The difference is what is submitted to the government. The equation is quite simple, yet many can mess it up due to several factors like ignorance of the laws, lack of knowledge, no proper maintenance of books of records, lack of proper transaction mapping, etc. A return is thus needed to submit to see whether the required regulations have been followed or not and whatever is being collected from the end-user is being submitted to the government.

Now the question is how to file a return;

VAT filing will be completely an online activity through the portal of FTA. There are set of procedures and a prescribed format that’s been given out by FTA which registered individuals and businesses should follow and file their returns accordingly. The procedure will be completely online, and no manual returns are accepted. A wrongly calculated VAT may lead to consequences in form of penalties to the registrant. Also, it’s necessary to submit it on time as delay in submission will also be considered as non-adherence to law and penalties will be imposed.

When to file a VAT Return?

Every taxable person is required to submit the VAT return within 28 days from the end of each tax period as prescribed by the FTA. This must be completely in accordance with the provisions of the UAE VAT Law. The role of an accountant or a tax consultant is very important in complying with the VAT regulations. As it’s a tax on the transaction so even if a single transaction is wrongly mapped and identified it may lead to big errors. We can help you to face this transition phase whether its registration, implementation, transaction mapping, return filing, accounting, etc.

Source: https://nrdoshi.ae/vat-return-filing-process-uae/