In the UAE VAT, the standard VAT refund period applicable to most taxpayers is quarterly, that is, three calendar months. In addition, free trade zones may require certain types of companies to submit monthly VAT returns. The last date to submit the tax return is the 28th day after the end of the VAT return period. For example, if the VAT refund period is from January to March, the last date to submit the VAT refund is April 28.
The VAT filing period applicable to each taxpayer can be found on the FTA portal. Taxpayers can log in to the portal website using their login credentials and check the applicable VAT tax return period.
As mentioned in the above table, the first tax return under the UAE’s VAT system will be submitted by the taxpayer who applies the monthly tax return on February 28, 2018. In addition, the first quarter return will be completed by the taxpayer on April 28, 2018, and its tax year will end on March 31. The next date is May 28, 2018, which applies to taxpayers whose tax year ends on January 31, for a period of 4 months, and applies to companies whose tax year ends on the last day of February, June 28, 2018 The last quarterly return lasted for 5 months.
The return period for the standard value-added tax is 3 months, but the first return period for taxpayers whose tax year ends on the last day of January 31 and February is 4 months and 5 months, respectively.
If the deadline for submitting a VAT return and corresponding payment is a weekend or national holiday, the deadline for submitting a VAT return or payment will be extended to the first working day. In addition, if there are no business transactions during the tax period, the taxpayer must submit a “zero” VAT return before the due date.
UAE VAT RETURN
The value-added tax return, also known as the “tax return”, is a periodic statement that the registrant needs to submit to the authorities. The detailed information and data provided in the VAT return for tax purposes are stipulated in the UAE VAT administrative regulations. All detailed information required in the VAT return must be prepared in accordance with the format of the VAT return issued by the competent authority.
VAT declaration deadline
The standard VAT return submission cycle is quarterly. However, the competent authority may require certain types of companies to submit monthly value-added tax returns to reduce the risk of tax evasion and improve the company’s monitoring of compliance.
Tax filing deadline for VAT returns
Quarterly returns Most companies in the UAE will submit their VAT returns quarterly
Monthly returns only require certain types of businesses to submit monthly VAT returns.
In addition, in order to ensure that the compliance burden of enterprises and the administrative burden of the competent authorities is reduced, the law allows certain types of enterprises to have a longer VAT declaration period.
VAT refund due date
The last date to submit the VAT return is the 28th of the next month after the end of the tax period. For quarterly VAT returns, the deadline will be the 28th of the next month after the end of the quarter.
For monthly returns, the last date for submitting VAT returns is the 28th of the next month. For example, for the return period in January 2018, the final date is February 28, 2018.
Click here to learn more about the deadline for returns.
Companies registered in the UAE must submit an online VAT return. The VAT refund form in the United Arab Emirates should be summary level. This means that the registered company must submit the consolidated details of the supply, such as total sales, total purchases, output value-added tax, input value-added tax and tax payable.
Although the details are at the consolidated level, companies must classify consumables into the following categories:
Zero interest rate supplies
Reverse charging power
Internal GCC supplies
Click here to learn more about the VAT return
It is expected that the UAE’s VAT return will be completely online. This means that all registered companies in the UAE must log in to the FTA portal to submit their VAT returns.
The FTA portal is designed to accept returns only through the online mode, while the offline function is currently unable to file VAT refunds through XML, EXCEL or any other utility. This means that taxpayers need to manually provide sales, purchases, output VAT, input VAT, etc. in the corresponding VAT box available in the FTA portal.
Click here to learn more about VAT declaration.
Click here to learn more about frequently asked questions about VAT refunds.
VAT RETURN FORM 201
Starting from January 1, 2018, businesses registered under the UAE VAT must submit an online VAT return. VAT returns must be submitted quarterly, and certain types of businesses may need to submit monthly.
The VAT return 201 is at the summary level or the consolidated level. The registrant must provide the consolidated details of all supplies-purchases and sales, output VAT collected on supplies, qualified input VAT paid at the time of purchase, input VAT recovered and total tax payable.
The UAE VAT Enforcement Regulation stipulates mandatory information that must be declared by the registrant in his VAT return. The following are the details that need to be included in the VAT return:
1. The name, address and TRN of the registrant: The tax registration number (TRN) provided by the FTA must be provided in all VAT returns. According to the TRN number, the name and address details will be filled in automatically.
2. Date of submission: The VAT return must be submitted within 28 days after the end of the VAT return period. Here, the date the return was submitted will be recorded.
3. Tax Period: Tax Period is the return period related to the tax return. For example, for January to March 18, it will be March 18.
4. Detailed information about the materials (sales) generated during the VAT return: you need to provide the value of the materials (sales) and the output VAT collected during the return. In addition, consumables need to be classified into the following categories:
5. Standard rated consumables: including all domestic consumables subject to 5% VAT. In addition, these details need to be provided at the emirate level as follows:
1. Standard consumables in Abu Dhabi
2. Dubai’s standard rated consumables
3. Standard rated consumables in Sharjah
4. Ajman standard rated consumables
5. Standard rated consumables of Umm Al Quwain
6. Ras Al Khaimah’s standard rated consumables
7. Fujairah’s standard rated consumables
6. Zero-rate consumables: In this section, you need to provide detailed information about the notified consumables under the zero-rate list.
7. Exempt supplies: You need to collect the financial services, residential construction and other supplies notified by the exempt supplies here.
8. Reverse charging products: goods for which the recipient or buyer should pay VAT on the reverse charging mechanism, such as imported goods and other notified goods.
9. Detailed information about the expenses (purchasing) incurred during the VAT refund period: You need to declare the value of the expenses eligible for VAT refund and the amount of input tax that can be recovered during the VAT refund period. Please note that the input tax credit that should be restricted or the input tax credit you are not eligible to claim should be reduced from the total amount, and only the net value needs to be mentioned. In addition, the standard expenses (5% value added tax paid) and the total expenses of the expenses and the recoverable input tax need to be shown separately, and reverse expenses should be deducted.
10. Total value of tax payable and recoverable tax: You need to mention the total output tax and the recoverable input tax collected during the return period.
11. Tax payable: This is obtained after adjusting the output tax with the recoverable input tax. If the output VAT is higher than the input VAT, the VAT payable will be generated. Otherwise, the VAT will be refunded, which can be carried forward to the next return period, or a refund can be requested.
The above are some required details that need to be provided in the VAT return. In addition to the above mandatory details that apply to most companies in the UAE, the return format also includes other additional information listed below.
a. Profit rate plan
b. Provide travel tax refund plan
Click here to download the VAT return
VAT refund forms must be archived electronically, that is, companies are required to prepare tax refund forms in a prescribed format and manually understand the values in the FTA portal. Companies must have a software that can not only help companies with accounting, value-added tax, but also help companies generate valid VAT tax returns in a format accepted by the FTA.