Tax Period
A tax period is a specific time frame for which the payable tax is calculated and paid. The standard tax period that applies to a Taxable Person is three calendar months ending on the date that the FTA determines. If a taxable Person is assigned the standard Tax Period, he may request that the Tax Period end with the month that he requests, and the FTA may grant this request.
Key VAT Services in Dubai
VAT Registration
Companies with turnover over AED 375,000 annually are mandatorily required to register for VAT. Volunteer registration is permitted for companies with turnover over AED 187,500. VAT service companies assist in VAT registration, proper documentation, and compliance with FTA guidelines
Registered companies are mandatorily required to file VAT returns at periodic intervals, say quarterly or monthly. VAT companies in Dubai assist companies in preparing and filing VAT returns properly to avail proper input VAT and meet deadlines.
VAT Compliance & Advisory
Companies are mandatorily required to comply with VAT laws through proper records and adherence to FTA guidelines. VAT companies provide expert advice in VAT compliance, record-keeping, and tax planning to minimize VAT liabilities.
VAT Accounting & Bookkeeping
Proper VAT-compliant accounting is mandatory for companies. VAT service companies provide bookkeeping services with proper tax calculation, invoice processing, and audit preparation.
VAT Audit Assistance
FTA may conduct audits to determine VAT compliance. VAT professionals assist companies in audit preparation, including proper documentation and compliance with taxation laws
VAT Refunds
Companies and tourists may be eligible for VAT refund. VAT service companies assist in filing refund claims and ensure the company meets the FTA refund requirements
VAT Training & Support
Most companies need training in the implementation and compliance with VAT laws. VAT companies in Dubai organize workshops and training sessions for companies and accountants
VAT Return Filing in Dubai, UAE
Introduction to VAT Return Filing Dubai, UAE
Value Added Tax (VAT) return filing is an essential requirement for businesses operating in Dubai, UAE. The Federal Tax Authority (FTA) mandates registered businesses to submit VAT returns periodically, ensuring compliance with tax laws. Filing VAT returns accurately and on time helps businesses avoid penalties and maintain smooth operations. Understanding the VAT return filing process, its requirements, and best practices can aid businesses in fulfilling their tax obligations efficiently.
Understanding VAT Return Filing
VAT return filing is filing taxable sales, purchases, VAT collected on output, and recoverable VAT input with the FTA. VAT return form VAT 201 is to be filed within the provided time limit in order to avoid non-compliance.
Who Is Required to File VAT Returns?
Every business VAT registered in Dubai and throughout the UAE is required to file VAT returns, such as:
- Entities with a turnover of AED 375,000 or more in a calendar year (obligatory registration)
- Businesses registered voluntarily with turnover over AED 187,500
- Individuals or businesses carrying out taxable commercial operations
VAT Return Filing Period
VAT returns are normally submitted quarterly; however, some companies can be
asked to submit monthly based on their turnover and FTA requirements.
How to File VAT Returns in Dubai, UAE
Login to the FTA e-Services Portal
Companies are required to log into the FTA portal through their Tax Registration
Obtain the VAT Return Form (VAT 201)
The VAT 201 form has different sections, such as:
- Taxable purchases and sales
- Output VAT on services and sales
- Input VAT on business expenses
- Net VAT payable or recoverable
Input Sales and Output VAT
Businesses are required to report their total sales and compute the VAT received from customers at a fixed rate of 5%.
Report Purchases and Input VAT
Companies can recover input VAT on qualifying business expenses, lowering their overall VAT liability.
Compute Net VAT Liability
If output VAT is higher than input VAT, the company has to pay the difference to the FTA.
If input VAT is higher than output VAT, the company can be entitled to a VAT refund or carry the excess forward.
File VAT Return and Pay
After checking the VAT return information, companies should file the form before the deadline.
Payment should be made online via the FTA portal, bank transfer, or other accepted means.
VAT Compliance and Penalties
VAT Compliance:
- On-time VAT registration and renewal.
- Correct tax return filing and payment.
- Record-keeping and invoicing correctly.
- Compliance with VAT legislation and regulations.
Penalties for Non-Compliance:
- Fines for delayed registration and filings.
- Penalties for improper VAT returns.
- Additional fees for non-payment or avoidance.
- Legal action for repeated infringement.
VAT Refunds and Adjustments
Companies are eligible for VAT refunds if they have more input VAT than output VAT. The refund requests must be made using the FTA portal, and supporting documents should be submitted to support the claim.
Importance of Professional VAT Services
Filing VAT returns canbe complicated, and professional VAT services in Dubai are needed in such cases. VAT specialists help companies with:
- Filing VAT returns correctly and in a timely manner
- Compliance with the rules of FTA
- VAT refund and adjustment management
- Penalty evasion through timely filing