Simply put, VAT return filing tells the tax authorities how much VAT needs to be paid or refunded. A VAT return is typically filed quarterly and enables businesses to follow the proper financial course. So, it is recommended to have basic knowledge of VAT Return Filing in UAE.
What is VAT and its position in GCC Countries?
Value-added tax (VAT) is a consumption tax imposed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. It is a form of indirect tax levied in more than 180 countries around the world. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that has already been taxed.
GCC countries have entered the VAT law and agreed to a VAT rate of 5%. If you are planning to set up a business in UAE, one should be aware of the VAT return filing and VAT-related processes existing there. VAT return filing is a statement showing how much VAT is to be paid or reimbursed by the tax authorities. This is important that it has all the recorded tax paid by consumers for a period of time. It serves to be proof that a registered business has paid the tax due. The form used for VAT return filing is called Form VAT 201.
All registrants should file VAT returns, irrespective of the type of VAT registration or sales, purchases, output tax, input tax, etc.
READ MORE ABOUT ALL FORMS OF VAT SERVICES IN UAE
How to file a VAT Return?
VAT Returns Filing is done through the online portal of the Federal Tax Authority (FTA) available under e-services. Everything will be done entirely online.1. Access the Federal Tax Authority website at tax.gov.ae
2. Click on the e-services section of the website
3. Put in the login details, which are the TRN and password
4. Choose the return filing option
5. The VAT return should then be filled with your business details, such as transactions, tax liability, penalties etc.
6. Upload the necessary documents
7. Submit the form with the documents
When to file VAT Returns?
VAT returns are filed every three months, four times a year. Registered businesses are expected to observe this mandated filing of VAT returns. The returns will be filed monthly or quarterly based on type and size of the business. Each eligible individual and business in Dubai are needed to register on the portal and file their tax returns as per the schedule. To run a business properly it is important to file VAT returns on time in order to keep good accounts with the authorities.
BMS Auditing is one of the leading VAT Experts in the UAE. We assure that we can provide you best VAT Return Filing Services. We’ll help you to run your business smoothly.