Starting from January 1, 2018, businesses in the UAE must comply with VAT regulations. One of the requirements to comply with the VAT regulations is to submit a VAT return. Most companies in the UAE are required to submit returns on a quarterly basis, and several types of enterprises may be required to submit returns on a monthly basis.
To help you easily understand the topic of VAT refunds, the following short FAQs have been created, which will answer most of your questions about VAT refunds.
1. Does each registered company have to submit a VAT return in the UAE?
Answer: Yes, all registered companies must submit a VAT return.
2. How to submit a VAT return in the UAE?
Answer: The UAE VAT return should be submitted online. Registered companies must prepare VAT tax returns in the prescribed format and submit them online to the FTA website.
3. Is it possible to submit the actual VAT return?
Answer: All VAT refunds will only be accepted in online mode.
4. What is the UAE VAT return?
Answer: The submission cycle of standard VAT returns is quarterly. It is expected that only a few companies submit VAT returns every month.
5. When is the deadline for submitting VAT returns in the UAE?
Answer: The final filing date of the tax return is the 28th of the next month after the end of the tax period.
6. Is there any format of VAT return that needs to be submitted?
Answer: Yes, the competent authority has stipulated the value-added tax return format. In this format, the registrant needs to provide detailed information about the consumables.
7. What is the format of the returned file accepted by FTA?
Answer: Currently, the detailed information in the VAT refund form needs to be manually provided by logging into the FTA website
8. What detailed information should be provided on the VAT return?
Answer: Broadly speaking, detailed information about all your supplies-purchases and sales, output tax, input tax, recovered input tax and tax payable need to be provided in the VAT return.
9. Do I need to declare the supply details at the Emirates level in the VAT return?
Answer: Yes, it is necessary to declare the Emirates supply in the VAT return.
10. I provide goods with a tax rate of 5% and export the goods to other countries/regions. How can I declare the details in the VAT return?
Answer: The VAT refund form is designed to separately display the supplies that are taxable at the standard value-added tax rate of 5% and the zero-rate supplies. In your case, you need to declare the standard rated VAT supply and the zero rated supply separately.
11. The goods I import are subject to VAT on a reverse charge. How should I declare the details in the VAT return?
Answer: The VAT return form contains a separate commodity import field where you need to provide detailed information.
12. My input tax is greater than output tax. How to adjust and file the VAT return?
Answer: Under the above circumstances, this will result in a refundable value-added tax, which can be carried forward to the next value-added tax return period or require a refund.
13. Can I generate VAT refund documents from the software and submit the tax refund online?
Answer: Yes, you can generate VAT refund documents from any FTA certified software. Only return documents generated by certified software are allowed.
14. What are the consequences of not submitting the VAT return?
Answer: Failure to submit a VAT return may result in tax assessment, and you may be responsible for paying administrative fines.
15. What is the amount of administrative penalty for not submitting a VAT return?
Answer: The administrative fine shall not be less than 500 dirhams, but shall not exceed three times the tax amount of the administrative fine.