As a business operational in the UAE in 2024, familiarity with all features of VAT is no longer a pleasant thing to have; it is pretty much a must for you. VAT-registered businesses must submit information to the government through returns. They must file returns online via the Federal Tax Authority online portal. There are some factors to know that help you understand how to Handle VAT Returns in UAE.
Who has to file VAT Returns in UAE?
Every VAT-registered entity has to file a VAT return once every tax period. The tax period can be varied such as a month or a quarter. It all depends on the FTA statements on the VAT certificate.
Know when to file VAT return in UAE
The VAT filing deadline is typically on the 28th day following the end of each tax period whether it is quarterly or monthly. Turnover decides whether you fall under quarterly or monthly categories such as;
- VAT filing is Monthly for businesses with a yearly turnover surpassing AED 150 million.
- VAT filing is Quarterly for businesses with a yearly turnover of AED 150 million or less.
Regular monitoring of your VAT requirements and staying informed of any changes in deadlines or procedures through the FTA portal is fundamental in the UAE.
Steps to file VAT return in the UAE
The step-by-step process to file a VAT return in the UAE is following;
- Log in to the Emaratax portal and register yourself by setting a username and password.
- When you get logged in, click on the button VAT and follow the path such as ‘View All’ under ‘My Filings’. Click the button of ‘File’ for the return period.
- Confirm your obedience to the rules and start the application. This is the point where your filing procedure starts. Make sure to have all documents and information ready so the process gets smoother.
- As in your previous filing, the system will pre-fill some details. Evaluate these details carefully and make the required edits. Otherwise, enter the required fields from scratch.
- Download the document and fill it out carefully. After that upload the offline Excel template for VAT data. This template will help you through entering your VAT required details. Make sure to fill it with accuracy before the final upload.
- Fill Boxes 1-7 with the required input VAT such as sales details, and adjustments.
- Enter the standard rate sales in Box 1.
- Tourist tax refunds are filled in Box 2 from ‘Planet Tax-Free’
- Box 3 will be used for sales under the contrary charge
- Put 0-rated and exempt sales in Boxes 4 and 5
- Customs data shown in Box 6
- Evaluate and adjust in Box 7 if needed
- After entering all compulsory particulars in their particular boxes, evaluate your total sales tax liability and check entries in Boxes 8 through 14.
- Box 8 reviews the total values from Boxes 1 to 7 for the filing period that shows your sales and tax liability.
- Box 9 shows record total amounts, VAT charged, and changes for standard-rated expenses.
- Box 10 shows for purchases subject to reverse charge
- Box 11 computes the total inputs from Boxes 9 and 10
- Boxes 12 and 13 demonstrate total output and input taxes for the period
- Box 14 specifies the final amount of tax you owe or are due as a refund
- After entering in all the essential details, it is time to review the last time and complete the declaration. Evaluate your entered fields carefully to make sure all the information is correct. Continue with the last submission steps such as payment of tax owed by the due date. Click the submit button so you can complete the filing process.
- After submitting your VAT return, you will have a distinct reference number for your submission. Make sure that you keep this reference number for the VAT return period and all the documentation associated with your VAT return. You must keep these records for 5 years according to the UAE’s VAT Laws.
Conclusion
To handle VAT returns in the UAE, it is mandatory to complete the procedure accurately. Sometimes it may be complex due to the business’s less familiarity with VAT returns. It is recommended to get assistance from expert consultants such as Vat Registration UAE experts. Their proficient team can help you handle the complexities effectively.
