According to VAT regulations in the UAE, all companies registered for VAT with the Federal Tax Authority must submit formal documents known as VAT Returns. These filings enable companies to report their input tax credit and liabilities to the FTA. Ensuring adherence to FTA laws and regulations requires VAT-registered entities to regularly submit their VAT returns. Late submissions incur penalties, making it essential for companies to engage the expertise of top Tax Consultants in UAE to effectively ensure VAT compliance. This article explains how to prepare VAT returns in the UAE.
How to submit VAT returns in the UAE?
In the United Arab Emirates, completing your VAT return entails following a systematic online process:
- Emaratax Portal: This is the E-services portal by the Federal Tax Authority. The Emaratax portal can be accessed using the login Id and the password. IF not signed up already, then the businesses can create a new account using the email Id and the contact number and other details.
- Next you can navigate to the VAT returns section: on the navigation menu, click on VAT and then click on My filings. Lastly click on file for the relevant tax period.
- Third step is to complete the VAT return form: the VAT return form must be filled carefully and accurately.
- Saving the progress: The form progress can be saved and can be retrieved at a later time also for completion.
- Submitting the VAT return: Lastly, the VAT return form can be submitted online. This can be done by the businesses themselves or they can appoint tax consultants in the UAE for filing VAT return.
VAT return is an important document that lets you know your VAT obligations. Therefore, as a business owner you must ensure compliance and submit your VAT return on time to the Federal Tax Authority.
How to calculate the VAT return due and how to maintain records for VAT filing in the UAE?
A structured approach to VAT filing is an important step for all kinds of businesses. The process not only involves maintaining records but also has to calculate the exact VAT that has been charged and paid by the business. The following steps are to be followed;
- Determining the VAT period: The typical period for VAT return filing in the UAE is for every quarter. On the other hand, certain businesses might need to submit their VAT returns every month. As a result, companies operating in the UAE need to stay informed about the regularity of VAT filings that they must adhere to.
- Maintaining precise records: detailed and accurate records are to be maintained by the businesses for VAT filing purposes. All the transactions like that of sales, purchases and expenses must be maintained and fil3ed properly so that when asked the same can be produced Infront of the tax consultancy or the FTA.
- Calculating the output and input taxes: The exact amount of VAT collected from your customers (Output tax) and VAT charged from you by your suppliers (input Tax) has to be calculated to arrive at the VAT due or VAT return that is to be sent to FTA.
- Completing the VAT return form and filing VAT online: Lastly, you must complete the VAT return online by filling in the VAT liability on the FTA portal. The return must be filed within specified time limit to avoid penalties.
- VAT payments and record maintenance: This is the last step wherein you need to pay the VAT due to you to the FTA and maintain a record of the transaction as well. Payment can be done online through various payment methods given by the FTA. All the VAT return, invoices and receipts must be retained for your records at least for a period of 5 years.
Seek the expert services of VAT Registration UAE
VAT Registration UAE is a reputable Tax Consultant in UAE, committed to assisting Taxable Persons in implementing VAT compliance. Thus, contact us today and we shall be glad to assist you.
