VAT sales details
In the box above, the taxpayer needs to declare the net value of standard supplies and the applicable output value-added tax. Standard rated consumables are those consumables that are subject to 5% VAT. Here, net value refers to the value of supplies, excluding value-added tax charged to customers.
For example, if your product sells for AED 1000 plus AED 50 for VAT, you should report AED 1000 under the “Amount (AED)” column and Dh50 under the “Value Added Tax (AED)” column.
This information should be identified in the Emirates where the product is provided, so you need to provide detailed information in boxes 1a to 1g.
For companies that have a fixed establishment in the UAE, the supply should be reported in the emirate of the fixed establishment with the closest ties to the establishment. For companies that have not been established, the source of the supply should be reported in the UAE where the supply is received.
This table describes the types of consumables (if any) that need to be reported with the processing.
Types of processing supplies included or not included in the VAT return
The supply of all goods and services subject to 5% VAT, including standard rated sales, needs to be reported at the Emirates level. Mention the net value of the consumables in the “Amount” column, and output the VAT collected in the “VAT amount” column.
After the standard rated supply including the discount rate reduces the discount value, the goods and services provided at the discount rate shall be reported. For example, the price of the goods sold is 1,000 dirhams and the discount is 10%. Here, the taxable value is 900 dirhams (1,000 dirhams-10% discount) and the value-added tax is 45 dirhams.
The withholding tax rate for prepayments received including taxable prepayments is 5%. In this case, you need to report 5% of the received advance payment as “VAT Amount” and keep it under the “Amount Field”. For example, if you have received 10,500 dirhams in advance, you need to report 10,000 dirhams under the “Amount” column and 500 dirhams under the “VAT amount”
The included credit note needs to reduce the value of the issued credit note from the standard rated supply, and only the net amount needs to be reported.
These types of consumables, including sales through vending machines, should also be reported under standard rated consumables. The only change is that you need to report this during the tax declaration period when the funds are collected from the vending machine.
Deemed materials are included, such as gifts of commercial assets that exceed the allowable limit, commercial assets for private use, etc. Taxpayers need to book such supplies themselves and calculate the value added tax incurred. In addition, you must also report here the goods and services you owned on the date of the tax refund.
Including supplies under the profit rate plan, even if the VAT receivable is calculated on the basis of realized profits, it is still necessary to report the total value of the goods sold under the profit rate plan minus the value added tax calculated at the profit rate.
Items provided by non-residents. Including supplies provided by non-residents who must be registered in the UAE because the recipient of the non-goods or services is not registered in the UAE.
Designated area supplies-consumption in a designated area, including the supply of goods in a designated area consumed in a designated area.
Sales of included commercial property. If you are the seller of taxable commercial property that occurred in the UAE during the tax period and the buyer has paid output tax to the FTA, you must pay the output tax as usual. Include output in the adjustment column tax.
You can correct errors during the previous tax period. You will be able to correct errors in the previous tax period during the current tax return period. You need to adjust the value and display only the net standard rated power and output. This is only allowed if the error results in the more or less VAT payable not exceeding 10,000 dirhams. If the tax amount of the discovered error exceeds AED 10,000, voluntary disclosure shall be submitted within the tax period when the error is discovered.
Designated area supplies-non-consumption in the designated area does not include the sale of goods that are not consumed in the designated area.
Zero-rated supply is not included. Zero-rated supply (for example, exports of goods or services outside the UAE, zero-rated education services and zero-rated healthcare services, etc.) are not included in the standard rated supply.
Points to consider when filing standard rated consumables in the VAT return 201
1. Insert all amounts into the United Arab Emirates Dirham (AED)
2. Insert all amounts into the closest fils (the table allows two decimal places)
3. Fill in all required fields. Mention “0” in a box that does not suit you
4. Ensure that the value of credit notes issued during the tax declaration period is taken into account when deriving the net value standard rated supply and output value-added tax5. You only need to declare the advance payment value of taxable supplies. If the money received is not used for supplies such as security deposits or for tax-free supplies, there is no need to report such receipts in this section
6. Ensure that the timing of each supply is determined in accordance with the provisions of the VAT Law. Therefore, you only need to identify and report those supplies that are subject to VAT during the current return period
7. In the case of selling commercial properties, please make sure to mention the output value-added tax amount in the adjustment column as described above