VAT Return filing is the official tax document to be submitted to the Federal Tax Authority before the due date. VAT Return filing has to be done by the Taxable Person at regular intervals depends upon his tax period. The VAT Return should show the details of any output tax due and input tax recoverable together with other information as required by the format. It can be filed either by a taxable person or any other person who has been authorized to do so on behalf of the Taxable Person (a Tax Agent or a Legal Representative).
Federal Tax Authority has published the VAT Return Format in their web site “VAT201- VAT Return”. In order to access it, you have to log in to the FTA e-services portal using your registered username and password. Currently, it is available only to those Taxable Persons who are required to file their return for the month January 2018 (due date 28th February 2018).
VAT Return Filing must be done by not later than 28th day of the month following the Tax period or by such other date as requested by FTA. For example; if your first VAT return period is January 2018 to March 2018, your VAT return due date will be 28th April 2018. Where a payment is due, it should also be paid by the same deadline. Where the due date falls on a weekend or a national holiday, the deadline is extended to the first business day thereafter. Late filing of VAT return attracts penalty of AED 1,000 for the first time of occurrence of a delay. The penalty would be increased for subsequent non-compliance of filing of VAT Return.
The standard Tax period applicable to a Taxable Person is a period of three calendar months. However, FTA has assigned different Tax Periods for a certain group of Taxable Persons. Some of them have Tax Period on monthly basis. A Taxable Person has an option to request to the FTA to change his Tax Period
. However, it is at the FTA’s discretion to accept the request.
While doing the VAT Return filing process, details of the Taxable Person will be pre-populated. Further, details like the current VAT Return Period, Tax year-end, VAT/Tax Period reference number and VAT Return submission due date will also be generated automatically. For VAT Return Filing, the following should be taken care of;
The VAT Return Filing requires every registrant to provide emirates wise details of taxable supplies i.e. based on the fixed establishment (head office/branch/warehouse etc.) from where supplies are happening. Details to be summarized under Taxable Supplies includes the following;
Retailers who have provided a refund to tourists under the official tourist refund scheme are required to provide the details regarding the same in the VAT Return Filing. The value of supplies of goods and services under the Reverse Charge Mechanism is to be declared separately. However, the value of goods imported into UAE will be auto-populated to the extend it was declared under the Taxable Person’s customs registration number.
Adjustments can be made to the value of imported goods that is auto-populated in case of omission or mistake in the value when compared with the amounts reported in the customs and import declaration. Further, any import of goods which are not subject to the standard rate of VAT in the UAE at 5% can also be adjusted as by default all the imports are assumed to be subject to 5% VAT rate. Additional information relating to supply to be declared in the VAT Return Filing are the Zero-rated supplies and exempted supplies. The details of standard-rated expenses to be declared in the VAT Return includes the following;
After filling the details in the VAT Return Form, the net amount payable will be automatically calculated. In the case where the payable value is negative, you can have two options - To get a refund or to carry forward the amount to the next tax period. VAT shall be paid through an e-Dirham payment gateway which supports payments through an e-Dirham card or a credit card (Visa and Master cards only).
Our Tax professionals at Emirates Chartered Accountants Group provides the best VAT Return Filing Services in the UAE by visiting your office on a periodical basis to compile for your VAT Return Filing. We offer Complete assistance for guidance and support of VAT Return in accordance with the provisions of UAE VAT law.
Mr. Pradeep Sai
+971 – 556530001
+971 – 558892750
+971 – 508873115