This chapter provides information necessary to allow taxable persons to meet their compliance obligations in respect of tax return filing, payments of tax and obtaining VAT refunds. The intention of the FTA is to automate these processes using information technology as much as possible. It should be noted that the VAT-specific compliance matters addressed in this chapter are closely linked to, and work in conjunction with, the more general powers of the FTA to administer, collect and enforce tax as laid out in Federal Law No 7 of 2017 on Tax Procedures.

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Chapter 11 - Returns and Payments
Chapter 11
Returns and Payments
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Returns and Payments
Chapter Summary
This chapter provides information necessary to allow taxable persons to meet
their compliance obligations in respect of tax return filing, payments of tax
and obtaining VAT refunds.
The intention of the FTA is to automate these processes using information
technology as much as possible.
It should be noted that the VAT-specific compliance matters addressed in this
chapter are closely linked to, and work in conjunction with, the more general
powers of the FTA to administer, collect and enforce tax as laid out in Federal
Law No 7 of 2017 on Tax Procedures.
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Chapter 11 - Returns and Payments

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Chapter 11 - Returns and Payments
The below summarises the key terms explained in
earlier chapters with respect to the operation of VAT,
and how these impact a taxable person’s tax liability.
Output tax
‘Output tax’ is the VAT a taxable person calculates and
charges on their own supplies of goods and services
once they are registered for VAT. Output tax must
generally be calculated on supplies to other persons;
however, in certain situations VAT might be required to
be charged on supplies which were deemed to occur for
VAT purposes or on expenses which are subject to a
reverse charge.
The obligation to account for output tax arises at the tax
point for the supply, i.e. at the date of supply. Once the
date of supply has taken place, the taxable person must
account for the output tax in the tax return covering that
tax period.
Input tax
From the recipient’s point of view, ‘input tax’ is the VAT
added to the price by the supplier when the recipient
purchases goods or services which are subject to VAT. If
the recipient is registered for VAT then they may be able
to recover this input tax from the FTA, subject to the
conditions set out in Chapter 10 above.
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Understanding tax liability In general, a taxable person is able to recover input tax
in the first tax period in which both of the following
conditions are met:
● the taxable person has received and retained a
tax invoice or other documentation evidencing
the amount of VAT on the supply or import; and
● the amount of VAT has been paid, or is intended
to be paid, in whole or in part (in which case the
amount of input tax recoverable shall be limited
to the equivalent amount).
Once the ability to recover input tax has been
confirmed, the person is able to include the amount in
the relevant tax return as an input tax deduction.
Calculating tax liability
A registered person’s tax liability is simply the difference
between the output tax payable for a given tax period
and the input tax which is recoverable for the same tax
period.
Where the output tax exceeds the input tax amount, a
payment of the difference must be made to the FTA.
Where the amount of input tax exceeds the amount of
output tax, a taxable person is entitled to a refund of
VAT from the FTA.

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Chapter 11 - Returns and Payments
For each tax period, a taxable person will be
required to submit a tax return which contains
details regarding the supplies made or received by
the taxable person.
With respect to sales and other outputs, the taxable
person will need to report:
1. suppliesofgoodsandservicesmadewhichar
esubjecttothestandardrateof VAT;
2. suppliesofgoodsandservicesmadewhichar
esubjecttothezerorateofVAT;
3. supplies of goods and services made to
the taxable person which are subject to
the reverse charge provisions.
4. Tax refunds provided to tourists under the
Tax Refunds for Tourists Scheme, in case
the taxable person is a retailer and
provides tax refunds to tourists in the
UAE under the official tourists refund
scheme;
5. supplies made which are exempt from
VAT; and
6. where applicable, amendments or
corrections required from previous
periods to output VAT amounts.
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Filing tax returns
With respect to purchases and other inputs, the taxable
person should report:
Purchases and expenses for which the taxable person
would like to recover VAT; and
Where applicable, amendments or corrections required
from previous periods to input VAT amounts.
The amounts of VAT charged by the taxable person and
input tax recoverable by the person would then need to
be netted off in the tax return. The resulting amount is
the net VAT payable to, or to be refunded by, the FTA.
Due date for submitting tax returns
The due date for submitting tax returns and making a
payment of payable tax to the FTA is the 28th day following
the end of the tax period to which the tax return relates. It
should be noted that where a payment is due to the FTA, it
must be received by the FTA by the deadline.
Where the due date for the submission of the tax return and
the corresponding payment falls on a weekend or a
national holiday, the deadline for filing the tax return or
making a payment is extended to the first working day
following this.

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Chapter 11 - Returns and Payments
Submitting a tax return or making a payment of tax late will
result in a penalty levied by the FTA.
All tax returns should be submitted online using the FTA portal.
The return can be submitted by the taxable person, or another
person who has the right to do so on the taxable person’s behalf
(for example, a tax agent or a legal representative).
Correcting errors
Where a taxable person has made an error (for example,
calculated output tax incorrectly or recovered the incorrect
amount of input tax), then the person is required to correct this
error.
Where the correction is required in respect of a tax return or a
tax assessment, and the total value of the error is less than AED
10,000, the taxable person may correct the error on the tax
return for the tax period in which the error was discovered. In all
other cases, the taxable person must disclose the error to the
FTA within 20 business days of becoming aware of the error, and
request the FTA to correct the error.
By making a voluntary disclosure the taxable person may be
eligible for a reduction in any applicable penalty. However,
where a voluntary disclosure is submitted to the FTA after the
taxable person has received notice of a tax audit or while a tax
audit in in progress, the voluntary disclosure will either reduce
penalties to some extent or not at all
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Chapter 11 - Returns and Payments
7
Cabinet Decision No. 52 of 2017 –
Issued 26 November 2017 Cabinet
Decision No. 46 of 2020 – Issued 4 June
2020 Cabinet Decision No. 24 of 2021 –
Issued 11 March 2021
Article 62 – Length of tax period
1. The standard Tax Period applicable to a Taxable
Person shall be a period of three calendar months
ending on the date that the Authority determines.
2. As an exception to Clause 1 of this Article, the
Authority may assign a Person or class of Persons a
shorter or longer Tax Period where it considers that
a non- standard Tax Period length is necessary or
beneficial to:
1. Reduce the risk of Tax Evasion.
2. Enable the Authority to improve the
monitoring of compliance or collection of
Tax revenues.
The Executive Regulation of the
Federal Decree-Law No. 8 of 2017
on Value Added Tax
3. Reduce the administrative burden on the
Authority or the compliance burden on a
Person or class of Persons.
4. Where a Taxable Person is assigned the standard
Tax Period, he may request that the Tax Period ends
with the month as requested by him, and the
Authority may accept such request at its discretion.
Article 63 – Tax Periods in the Case of Loss of Capacity
1. Where a Person becomes an incapacitated Person,
his current Tax Period will end on the day before the
Person became incapacitated Person. A new Tax
Period will commence on the day the Person
became incapacitated Person in the name of the
Legal Representative.
2. For the purposes of Clause 1 of this Article
“incapacitated Person” means a Registrant who
dies, or goes into liquidation or receivership, or
becomes bankrupt or incapacitated.
3. The Legal Representative will, for the purposes of
the new Tax Period referred to in Clause 1 and
subsequent Tax Periods, be treated as the
Registrant himself for the purposes of the
Decree-Law and this Decision for the period of
incapacitation.

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Chapter 11 - Returns and Payments
Article 64 – Tax Return and Payment
1. A Tax Return must be received by the Authority
no later than the 28th day following the end of
the Tax Period concerned or by such other date
as directed by the Authority.
2. A Person whose registration has been cancelled
must provide a final Tax Return for the last Tax
Period for which he was registered.
3. A Taxable Person shall settle Payable Tax in
relation to a Tax Return using the means specified
by the Authority so that it is received by the
Authority no later than the date specified in
Clause 1 of this Article.
4. Where Recoverable Tax for a Tax Period exceeds
Due Tax for the Tax Period, the excess
Recoverable Tax may be repaid to the Taxable
Person in accordance with the relevant provisions
in the Decree-Law and the Federal Law No. 7 of
2017.
5. A Tax Return must contain such details as the
Authority may require and, at the minimum,
allow for the following information to be
included:
6. The name, address and the TRN of the
Registrant;
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7. The Tax Period to which the Tax Return relates.
8. The date of submission.
9. The value of Taxable Supplies made by the Person
in the Tax Period and the Output Tax charged.
10. The value of Taxable Supplies subject to the zero
rate made by the Person in the Tax Period.
11. The value of Exempt Supplies made by the Person
in the Tax Period.
12. The value of any supplies subject to Clauses 1 and
3 of Article 48 of the Decree-Law.
13. The value of expenses incurred in respect of
which the Person seeks to recover Input Tax and
the amount of Recoverable Tax.
14. The total value of Due Tax and Recoverable Tax
for the Tax Period.
15. The Payable Tax for the Tax Period.