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How to file tax returns in UAE?

1 January 2018 initiated a new economic environment in the country with Value-Added-Tax VAT implementation in UAE, making tax filing a mandatory financial operation for businesses and companies in the region. Filing your tax returns in UAE is basically a form of reporting the details of your taxable revenue. The Federal Tax Authority makes use of the information to determine your tax bill or check whether you are due a refund.

As the date for filing the first tax return in UAE has approached, here are a few important procedural concerns you must take into consideration:

  • The Federal Tax Authority is the legislative body monitoring the tax filling in UAE. According to the Federal Tax Authority, businesses can easily file tax returns in UAE through the e-service portals or the Federal Tax Authority’s website (FTA official website).
  • Every company needs to register for VAT depending on their threshold of annual turnover and total transactions. The compulsory threshold to register for VAT in UAE is Dh375,000 and the voluntary threshold to register for VAT is Dh187,500. Whereas, new companies in the process of establishment need to register for VAT within 30 days of registering their company if their turnover in the next 30 days will be more than Dh375,000.
  • Companies and businesses who have already registered for VAT in UAE have to file tax returns in UAE on monthly or quarterly basis; or as and when directed by the Federal Tax Authority.
  • VAT registered companies and businesses can also check their allocated tax periods and first tax end period (along with the designated dates) to file tax returns in UAE. Tax returns must be filed not later than the 28th day following the end of the tax period.
  • Taxable entities, businesses and companies are required to prepare necessary documentation –they must fulfill the tax laws, submit tax returns, pay due taxes in the definite time frame and keep records as required in tax legislation to avoid penalties. 
  • FTA’s Campaign 'Value-Added-Tax Filing in 4 Steps'
    • Enter the e-services portal on the FTA website, go to the 'VAT' tab and opt for company specific 'VAT returns' page – to initiate a new VAT return.
    • Fill up the data in the returns section – this will include sales, expenses and all the debits/ credits within the company. Enter the net amount excluding VAT, and also the net VAT amount. The system will calculate the tax payable or repayable.
    • Submit the report – this is a crucial step as you need to check all the entries thoroughly, make use of a tax advisor or a tax consultant to do so.
    • Pay the due tax on the 'My Payments' method make sure all the dues are paid before the due date to avoid any tax penalties.

To get assistance on tax filing or to know how to file your tax returns contact Shuraa Tax Consultants. Call us now +97144081960 / +971505795019.