Value-added tax (VAT), commonly referred to as a 'tax levy,' is a fiscal measure implemented by several developing and developed economies to bolster government coffers. This revenue enables governments to enhance infrastructure, provide better facilities for their citizens, and fund various developmental projects.
Similarly, in line with global trends, the Federal Tax Authority in the United Arab Emirates (UAE) has mandated that all entities, individuals, and registered businesses with a turnover exceeding Dh375,000 must file VAT returns in the UAE starting from January 1, 2018, to avoid penalties.
VAT Return Filing Services in the UAE
VAT return filing is a periodic requirement for all eligible registered businesses in the UAE. According to UAE VAT law, these businesses must submit their VAT returns to the Federal Tax Authority (FTA) within 28 days from the end of the designated tax period. The process of VAT registration and filing in the UAE is entirely paperless and conducted through the FTA's online portal under the e-services section.
Given the comprehensive nature of UAE VAT law, many foreign investors find themselves overwhelmed when it comes to understanding and fulfilling VAT return requirements. Expert Business Consultancy has been actively providing end-to-end VAT return filing services in the UAE and Dubai to our global clients, assisting businesses in achieving VAT compliance in the UAE.
VAT Return Form
To complete a VAT return in Dubai and the UAE, all registered business entities must fill out a standardized online VAT return form. This form includes aggregated details of transactions, such as total tax payable, sales and purchases, output and input VAT, and more. Our services can aid in categorizing transactions into the required classifications, including exempt supplies, intra-GCC supplies, reverse charge supplies, standard-rated supplies, and zero-rated supplies.
Information Required in the VAT Return
The VAT return provides insights into the amount of tax due or refundable during a tax period. Businesses are required to disclose both the input tax credit available and the total output tax payable. Key components of the VAT return form include:
Output Tax Liability on various transactions
Input Tax on imports of goods and services
Standard-rated expenses and purchases
How to File VAT Returns and Fill Form VAT 201?
The UAE VAT regulations outline the specific details and data that must be provided in the VAT return. All information entered in the VAT return form must adhere to the format provided by the FTA. Form VAT 201 is utilized for VAT return filing, and our tax experts at Maven can assist in accurately completing the form within the designated deadline.
We advise our clients to timely submit e-returns, even if they have no tax liability to report (i.e., nil returns), to maintain compliance with tax authorities and avoid penalties.
VAT Filing Periods
Typically, VAT filing in Dubai and the UAE occurs every quarter, i.e., every three months. However, some businesses may be required to file monthly VAT returns to ensure compliance and minimize the risk of tax evasion. Certain businesses may also benefit from extended VAT filing periods to reduce administrative burdens.
Contact Maven for Seamless VAT Return Filing in Dubai and the UAE
Filing VAT returns is crucial for demonstrating compliance with VAT obligations and aiding authorities in conducting audits and enforcing VAT laws when necessary. At Simply Solved, our team of accountants and tax specialists ensures that your business adheres to all mandatory VAT regulations and procedures. We offer comprehensive VAT filing services across the UAE and Dubai for our global clientele.
Our team will regularly visit your office to conduct timely tax planning, compile necessary information, and prepare VAT returns on behalf of your company by UAE VAT law. Additionally, we will represent your company before authorities when required, alleviating legal concerns and allowing you to focus on your business endeavors.
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