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VAT Filing in the UAE: Its impact on Businesses of All Sizes

All businesses registered for VAT in the United Arab Emirates (UAE) are obligated to electronically submit their VAT returns through the Federal Tax Authority (FTA) portal. This requirement applies to various categories of companies, including those with taxable supplies exceeding AED 375,000 annually, those voluntarily registering for VAT, tax groups operating as single entities, and enterprises outside the UAE supplying taxable goods within the country.

Selecting a Tax Period

The VAT filing process in the UAE involves selecting a tax period (monthly, quarterly, or annually) with a corresponding filing deadline, usually 28 days after the tax period concludes. Failure to meet deadlines may result in penalties, emphasizing the importance of adhering to the schedule. Businesses are encouraged to engage VAT consultants in the UAE to ensure timely and penalty-free filing.

To file VAT returns in the UAE, businesses must follow a structured process:

  • Select the Tax Period: Choose from monthly, quarterly, or annual options, with the filing deadline set at 28 days after the chosen period's conclusion.
  • Compile Necessary Data: Gather essential information, including the time frame for filing, total sales and purchases (taxable and exempt), output and input VAT, and any corrections or adjustments.
  • Access the FTA Portal and Complete the VAT Return Form: Enter details such as business name, address, tax period specifics, and financial figures into the FTA portal's VAT return section.
  • Validation and Submission: Verify the accuracy of entered data through an automatic validation process. Correct any mistakes before electronically submitting the VAT return to ensure compliance with FTA regulations.
  • Make the Payment: After submission, use the portal to electronically pay the relevant VAT. Payment methods include online credit/debit card banking and electronic wallets.

Additional considerations for VAT filing in the UAE:

Maintain accurate records of financial transactions for a minimum of five years.

Businesses using Tax Accounting Software (TAS) certified by the FTA should do so if their taxable turnover exceeds AED 150 million annually.

Companies with annual taxable revenue exceeding AED 400 million must designate a Tax Agent to oversee VAT compliance.

Seek the Expert Service of VAT Registration UAE

For further assistance, businesses can consult VAT consultants in the UAE. VAT Registration UAE, a Dubai-based tax firm, offers expert advice and assistance in navigating the complexities of the UAE VAT system. Engaging with these consultants ensures a smoother VAT filing process, minimizing compliance risks and maintaining a favorable relationship with the FTA. Thus, businesses should seek the expert services of top VAT Registration UAE, a reputable Tax Consultant in UAE. Therefore, contact us today and we shall be glad to assist you.  

Read More: Required Documents for VAT Registration in UAE

M. Al Khairy, LL.B Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on family law, and regulatory compliance for business organizations. Al Khairy also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators. Read more