Tax Return Filing
Under UAE VAT, the VAT return is due on 28th day from every last date, which will be filed by those businesses for whom the monthly VAT return is applicable. The businesses are required to file VAT Return online using the Federal Tax Authority (FTA) portal. The FTA portal is designed to accept the returns only through online mode as offline capabilities to file VAT return through XML, EXCEL or any other utility are currently not available.
This implies that the taxpayer is required to manually provide the values of Sales, Purchase, Output VAT, Input and Output VAT etc. in the appropriate boxes of the VAT return form available in FTA portal.
Once you have registered for VAT in the UAE, you are required to file your VAT return and make related VAT payments within 28 days from the end of your tax period.
STEPS FILE RETURNS AND PAYING TAX LAIBILITY
Completing your VAT Return:-Initial Process.
The return need to be filed through the web portal of UAE tax authority. www.tax.gov.ae web portal by Federal Tax Authority UAE. It is extremely important that, providing data are accurate and complete by you. If you fail to do so, there will be tax assessments. The VAT return must be submitted to FTA on or before 28th day from the last date of tax period.
OUTPUT VAT AND OTHER OUTPUTS
The first session of VAT return filing contains the details acquiring about VAT on sales and all other output. You should provide the Net value of sale/service amount which is taxable from you provided. The computed amount of Net value of sales is to be provide and also VAT liability which computed by you.
The business establishments which situated in UAE, is required to report the sale or supply of goods with the tax authority.
The Non-Business Establishments is required to submit the supplies of goods with the tax authority by the goods received by the customers.
The NET value should include the below details
- The supply of goods and services subject to 5% VAT
- Supplies of goods and services at a discounted rates
- Deposits received
- Sales through vending machines
- Supplies of commercial property
- Inter-company sales
- Supplies made to staff
- The sale of business asset
- Deemed supplies
- Re-imbursements of expenses from customers.
- The full value of goods sold under the profit margin scheme
(less any VAT calculated on the margin).
- Sale by Non-resident persons who are registered for VAT purposes in the UAE, Where the importer is not responsible for the calculation and settlement of the tax.
- Supplies of goods located within Designated Zones where the goods are consumed within the Designated Zone.
- Reduction in values due to credit notes issued.
- Errors that you are allowed to correct for pervious tax periods. This will apply where you have discovered an error where the tax payable tax is less than required by AED 10,000 or less and you discovered is more than AED 10,000 you should submit a voluntary disclosure in the tax period in which the error was found.
It should not include
- Sale of goods within Designated Zones which are not consumed within the Designated Zone.
- Out of Scope Supplies.
- Zero rated Supplies.
The VAT Amount relating to the Net Value of Sales and other outputs previously included within the ‘Amount’ column, should be included within the VAT amount Column. This is the VAT you have charged to customers, also known as Output Tax on supplies you have made.
There after we need to allocate the VAT amount of other GCCs.
- If you are not claiming the VAT Bad Debt reliefs or making a real-estate adjustments. You should not include anything into adjustment Column.
Filing your VAT return to what goes in you should only use the box if you are a retailer and provide task tourists scheme.
- The taxable person declared the value of goods and services received which are subject to VAT under the Reverse Charge Mechanism.
- The purchase of Oil and Gas products that are subject to the domestic reverse charge.
- This includes imports of services where the customers is required to account for the VAT.
- Please dis-regard any imports of goods that have been declared to UAE Customs during this Tax Period where the import VAT is reported separately.
- The only circumstances where a purchase of imported goods should be reported where the movement was not declared via UAE customs.