- November 6, 2019
- Posted by: Shuraa Tax Consultant
- Category: VAT - Value Added Tax in UAE
VAT return is the medium to report the total amount of VAT payable or VAT receivable for the tax period to the Federal Tax Authority (FTA). The taxable person needs to submit their VAT return by the end of each tax period. There’s a certain procedure that is followed while filling the VAT return. Let’s know everything about it in detail.
What is a VAT return?
VAT return comprises the total value of supplies and purchases made by a taxable person during the VAT period and related VAT. This highlights the taxable person’s VAT liability/ VAT refund defined as a difference between total output tax charged to a taxable person on supplies of goods and services and input tax recovered on the purchases made. If the output tax over the input tax, then the difference becomes the amount payable to the Federal Tax Authority (FTA). When this input tax amount exceeds the output tax, the excess amount is the amount refundable to the taxable person.
When should I submit my VAT return?
Following the end of the tax period, on the 28th day of the month, the FTA should receive the VAT return from the taxable person. In case there’s a weekend or a public holiday on that date, the taxpayer must pay it on the next working day. Also, if you decide to deregister for VAT, you need to provide your last VAT return for till the last return period, as specified by the FTA.
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How do I submit a VAT return?
It’s easy to file a tax return in UAE. Log in to the FTA portal using a registered username and password and once done, go through the navigation menu and get started with the filing process. The return is filled either by that taxable person or a tax agent or authorized legal representative.
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What is included in a VAT return?
Following are the relevant details included in a VAT return:
- Check and confirm the auto-populated details of the taxable person and tax period
- Value of supplies at the standard rate and VAT amount
- Value of exempt supplies and zero rates made in the tax period made during the tax period
- Value of any supplies subject to reverse charged basis VAT made during the tax period
- Expenses incurred with which the taxable person is entitled recovers the amount of input tax.
- Total tax amount that is due and is recovered during the tax period
- Value of the payable and repayable tax during the tax period
How do I make a payment?
The payments should be received by the FTA before the deadline date of the VAT returns i.e. 28th day after the end of the tax period. There are various methods for payment like you can use e-services like e-Dirham payment method or a credit card, or a bank-to-bank transfer. An extra charge of AED 3 is deducted when you pay using the e-dirham card while if you use a credit card you’ll be charged with 2-3% of the total payable amount.