VAT return filing is a periodic process. As per UAE VAT Law, every VAT registered business shall submit a Tax return to Federal Tax Authority / FTA

2. VAT return filing in UAE is a periodic process. As per UAE VAT Law, every VAT
registered business shall submit a VAT return to Federal Tax Authority / FTA,
summarizing the value of the supplies and purchases made during the tax
period and its total VAT liability.
VAT return filing in UAE

3. Tax period for VAT filing in UAE
A taxable business is required to file VAT return with FTA regularly within 28 days of the end of the tax period as prescribed
for each type of business. A tax period is a specified period for which tax payable shall be calculated and paid. The standard
tax period, as per UAE VAT Law, depends on the annual turnover of a business.
Businesses with a turnover below AED 150 million shall file a quarterly VAT
return
Businesses with a turnover exceeding AED 150 million shall file
a monthly VAT return

4. How to file VAT Return in UAE
VAT return is the document prepared and submitted by the taxable person at regular intervals providing
information as to input tax recoverable, output tax due, and any other information that the taxable person is
required to provide.

5. How to file VAT Return in UAE
A taxable person should prepare VAT return well in advance as he is required to file
VAT return online in the form named as ‘VAT 201’ on the FTA portal. Currently,
there is no facility available on the FTA portal to file tax return offline in XML or xls
or xlsx format. The taxable person must fill up the VAT 201 form correctly and
provide information as to sales, purchase, input VAT and output VAT, etc. There
are seven sections, as mentioned in the following slides as per the VAT 201 form:

6. How to file VAT Return in UAE
Taxable Person details
Information as to Tax Registration Number / TRN of the taxable
person and contact information. If a Tax Agent is submitting the tax
return on behalf of the taxable person, then the information about
Tax Agent Approval Number / TAAN) and Tax Agency Number / TAN
along with the Tax Agent name and Tax Agency name gets
automatically populated.
Value Added Tax return period
Information as to VAT Return Period, VAT Return Due Date, Tax Year-
End, and VAT Return Period Reference Number.

7. How to file VAT Return in UAE
VAT on sales and all other outputs
In this section of VAT Return, the taxable person has to provide information as
to standard rated tax supplies in different emirates including Abu Dhabi, Dubai,
Sharjah, Ajman, Umm al Quwain, Ras Al Khaimah, and Fujairah. Further, detail
as to tax refunds provided to tourists under the Tax Refunds for Tourists
Scheme should be provided. It is also necessary to provide information as to
exempt supplies, zero-rated supplies, goods imported into the UAE, and
adjustments to goods imported into the UAE.
VAT on expenses and all other inputs
In this section of Tax Return, you have to furnish information on standard
rated expenses, and supplies subject to reverse charge provisions.

8. How to file VAT Return in UAE
Net VAT due
This section requires furnishing information on the total value of due tax for the
period, the total value of recoverable tax for the period, and payable tax for the
period.
Additional reporting requirements
Additional reporting requirements are only applicable to taxable persons who
have applied the provisions of the Profit Margin Scheme during the taxable
period. Others may simply say tick ‘No’ and skip to the next section.

9. How to file VAT Return in UAE
Declaration and authorized signatory
This section requires the taxable person to declare that information provided in the
VAT return is factually correct, accurate, and complete to the best of his knowledge.
Hence, utmost care should be taken while preparing the VAT filing. The taxable
person has an option to save the draft tax return and submit it later.

10. Care to be taken while filing a Tax return
Fill up information for
all mandatory fields
Make sure to enter all the amounts
in United Arab Emirates Dirham
(AED) up to two decimal places
Do not leave the amount fields
empty. Enter ‘0’ if there’s nothing
to declare.
Double-check the accuracy and
completeness of the information
provided to avoid fines and penalties

11. Penalties related to VAT Return
• If the taxable person fails to submit the VAT return within the specified timeframe, then
he has to pay a penalty of AED 1000 for the first time and AED 2000 in case of a
repeated failure within 24 months.
• If the taxable person fails to settle Payable Tax as per the VAT return or Tax Assessment
within the timeframe then,
• 2% of the unpaid tax becomes due immediately
• 4% of the unpaid tax becomes due on the 7th day following the deadline for
payment
• 1% daily penalty is charged on any amount that is still unpaid one calendar
month following the deadline for payment subject to a maximum of 300%.

12. Penalties related to VAT Return
If the taxable person files an incorrect tax return then,
• A fixed penalty of AED 3000 for the first time and AED 5000 in case of a
repeated failure
• 50% if the taxable person fails to make a voluntary disclosure or makes the
voluntary disclosure after he is notified of the tax audit and the tax
authority starts the tax audit process or after being asked for information
relating to the tax audit whichever takes place first
• 30% if the taxable person makes the voluntary disclosure after being
notified of the tax audit and before the authority starts the tax audit
• 5% if the taxable person makes a voluntary disclosure before being
notified of the tax audit by the authority

13. Penalties related to VAT Return
• If the legal representative for the taxable person fails to
file a VAT return within the specified time, then the legal
representative has to bear the penalties of AED 1000 for
the first such failure and AED 2000 in case of repetition
within 24 months.

14. Frequently Asked Questions
I am a newly tax registered business. Is there any relaxation
for me in filing VAT return?
As per the UAE VAT Laws, there is no such relaxation for filing VAT return. All VAT
registered companies need to submit quarterly VAT returns on the 28th of the
following month.
What are the different options available for payment of tax?
(i) One can settle Payable Tax using e-dirham or credit card (Visa and Master
card only)
(ii) Another option available is payment via e-debit. Here the payment is
processed using retail or corporate banking channels of the taxpayer.
(iii) One can also make a fund transfer via GIBAN number as provided by the
FTA.

15. Frequently Asked Questions
Can I file VAT return without settling the payable tax?
Yes, one can file VAT return without settling the payable tax, but he can not
escape the late payment penalties.
Do I have to file my VAT return if I settle the payable tax on
time?
UAE VAT Laws require a taxable person to file his tax return and settle the
payable tax on time. If one fails to submit his VAT return on time, then he will
be charged penalties.

16. Frequently Asked Questions
I have come to know of mistakes in my tax return after
submitting it to FTA. What should I do?
You need to file a Voluntary Disclosure in Voluntary Disclosure Form 211 to
correct the mistakes if the net impact of VAT Payable or VAT Receivable is
more than AED 10000. If the net impact of such a mistake is less than AED
10000, then you are not required to submit the Voluntary Disclosure Form.
You can correct such mistakes or omissions in the subsequent VAT return.
Is it possible to generate a VAT return file from my
accounting software and file VAT return with FTA?
Yes, one can generate a VAT return file, and file VAT Return with the FTA if
the software is certified by the FTA.

17. VAT Consulting Service in UAE
N R Doshi & Partners provides a range of tax services, including
VAT return filing services, VAT Consulting, and Tax Agent services
in the UAE.
Our service is coupled with insight and domain knowledge to help
businesses remain compliant with the UAE Tax Laws.
Contact us to know more about how we can work together to
make you fully VAT compliant.

18. THANKS FOR WATCHING!!!