How to File VAT Return in UAE

 

The value added tax or value added tax is a tax on the consumption or use of goods or services collected at each point of sale. The value added tax is an indirect tax that is applied in more than 180 countries / regions around the world. The final consumer ultimately bears the cost. The company collects taxes on behalf of the government. Thevatconsultants are one of the best vat consultants in UAE which will help you to vat return filing.

 

Under UAE VAT, the first VAT return is due on February 28, 2018 and will be filed by the company applying the monthly VAT return. Companies must use the Federal Tax Administration (FTA) portal to submit their VAT return filing online. The FTA portal is designed to accept returns only in online mode, since it is currently not possible to use offline functions to make VAT declarations of documents through XML, EXCEL or any other utility. This means that taxpayers must manually provide the VAT equivalents of sales, purchases, input and input VAT in the corresponding boxes of the VAT returns available on the FTA portal.

 

The VAT return is called "VAT 201" and taxpayers must complete and submit this form to complete the VAT return. The VAT form 201 is roughly divided into the following seven parts:

 

• Taxable Person Details
• VAT Return Period
• VAT on sales and all other outputs
• VAT on expenses and all other inputs
• Net VAT Due
• Additional reporting requirements
• Declaration and Authorized Signatory

 

How to register for VAT

At the end of each tax period, companies or "taxpayers" that have registered for vat uae registration purposes must submit a "VAT Return" to the Federal Tax Administration (FTA). The VAT return summarizes the value of supplies and purchases made by the taxpayer during the tax period and shows the taxpayer's VAT obligations.

 

Liability of VAT

The value added tax liability is the difference between the output tax (VAT charged for the supply of goods and services) payable in a given tax period and the input tax (VAT on purchases) that can be offset in the same period tax. When the production tax exceeds the input tax, the difference must be paid to the free zone. If the input tax exceeds the input tax, the taxpayer will recover the excess of input tax; Due to the free trade agreement, you have the right to offset future payments.

 

How to file a VAT return?

You must request a tax refund electronically through the FTA portal eservices.tax.gov.ae. Before submitting a VAT tax return on the portal, make sure you have met all the tax reporting requirements.

 

When are businesses required to file VAT return?

Taxable businesses must submit VAT returns to NAFTA on a regular basis, generally within 28 days of the end of each type of "tax period." A "tax period" is a specific period of time during which the tax base must be calculated and paid. The standard tax period is:

 

• quarterly for businesses with an annual turnover below AED150 million
• monthly for businesses with an annual turnover of AED150 million or more.