VAT Return Filing is a mandatory, periodic obligation for every taxable business registered with the Federal Tax Authority (FTA). This process involves meticulously calculating the output tax (VAT collected) and input tax (VAT paid) for a specific tax period and submitting the official return (VAT Form 201) by the designated deadline.
VAT Return Filing is the mandatory process where a taxable business reports its VAT liability to the Federal Tax Authority (FTA) for a specific tax period (typically monthly or quarterly). The return provides a detailed breakdown of the VAT collected on sales (Output Tax) and the VAT paid on purchases (Input Tax).
Accurate submission is non-negotiable. It is critical to consult with tax professionals like KWS to ensure meticulous calculation and full compliance with the specific VAT regulations in your jurisdiction, safeguarding your business from penalties.
Every registered tax payer in the UAE is required to generate and file a VAT return once every tax period. The tax period is either a month or a quarter (3 months) depending on the prescriptions given by the FTA on your VAT certificate. The last day to file any VAT return, be it monthly or quarterly, is the 28th.
If you don’t submit your VAT return to HMRC on time, you’re not just liable for a late payment penalty. You’ll also have to pay interest on that too until you pay it. However, depending on your previous VAT payment history, you could receive a Surcharge Liability Notice (SLN) instead. If making payments on account and submitting quarterly VAT returns does not suit your business you can choose to make VAT returns and payments monthly. To make the change to monthly returns you can either: apply online to change your registration details. VAT will be paid only by the final consumer as registered companies will be able to claim back any VAT paid.
If you pay your VAT monthly or quarterly, the deadline for submitting your return and paying any VAT you owe is one calendar month and seven days after the end of the VAT period. For example, for the quarter ending 31 March 2017, your return must be submitted and payment cleared in HMRC’s account by 7 May 2017
Outsourcing VAT return filing across the UAE (Dubai, Sharjah, Abu Dhabi, and other emirates) is the most reliable strategy for achieving full compliance. Our VAT consultants possess expert knowledge of the FTA regulations and years of experience across all major industries.
