How to File VAT Returns in UAE?

Filing a VAT return in Dubai or the UAE is mandatory for businesses operating in the UAE. As a progressive economy, the UAE has implemented a tax system aligned with international standards to diversify revenue streams and support sustainable economic growth. 

If your business is registered for VAT with the Federal Tax Authority (FTA), you must file returns regularly by reporting the VAT collected on sales and paid on purchases. With a registration threshold of AED 375,000 per year, staying compliant is crucial; failure to do so can result in penalties. Understanding the VAT filing process ensures smooth operations and avoids unnecessary fines. 

What is a VAT Return in the UAE? 

A VAT return in the UAE is a report of business submitted to the government showing how much Value Added Tax (VAT) they collected from customers and how much they paid to suppliers during a specific period.

When a business sells goods or services, it collects VAT (output VAT), and when it makes purchases, it pays VAT (input VAT). At the end of each tax period, usually quarterly or monthly, this information is reported to the Federal Tax Authority (FTA) through the EmaraTax system. 

What Does a VAT Return Include? 

A VAT return helps the FTA determine whether a business needs to pay additional tax or claim a refund. The official form used is VAT 201, which includes VAT on sales (output VAT), VAT on purchases (input VAT), and the net VAT payable or refundable. 

For example, if a business collects AED 10,000 in VAT and pays AED 7,000 on expenses, it must pay the remaining AED 3,000 to the FTA. Filing on time is essential to maintain compliance, avoid penalties, and ensure financial transparency. 

Who Needs to File VAT Returns in the UAE? 

Any business or individual registered for VAT in the UAE is required to file VAT returns. This includes: 

• Businesses with an annual turnover exceeding the mandatory VAT registration threshold of AED 375,000.
• Voluntarily registered businesses with a turnover above AED 187,500. 

Frequency of Filing VAT Returns 

• Quarterly: Most businesses file VAT returns every quarter, covering three months of transactions. 
• Monthly: Larger businesses with a high turnover may need to file VAT returns monthly. 

Important VAT Return Filing Dates in the UAE 

If your business is registered for VAT in the UAE, you need to file VAT returns on time to avoid penalties. The Federal Tax Authority (FTA) gives each business a tax period – this is either every month or every three months (quarterly), depending on your business’s annual earnings. 

Quarterly VAT Filing (Turnover below AED 150 million) 

If your business makes less than AED 150 million per year, you’ll likely file VAT returns every quarter. Here’s when your returns are due: 

• Q1 (Jan – Mar): File by 28th April 2026 

• Q2 (Apr – Jun): File by 28th July 2026 

• Q3 (Jul – Sep): File by 28th October 2026 

• Q4 (Oct – Dec): File by 28th January 2027 

Monthly VAT Filing (Turnover above AED 150 million) 

If your business earns more than AED 150 million per year, you need to file VAT every month. The deadline is the 28th of the following month.

For example: 

• The return for May 2024 must be filed by 28th June 2024. 

Important Note: 

The FTA may assign a different tax period to some businesses depending on their situation. So it’s always a good idea to double-check your business’s assigned tax period in your FTA account. 

What You Need to File the VAT 201 Return Form in the UAE? 

If your business is registered for VAT, you must submit your VAT 201 return online through the FTA portal. The process is manual; you’ll need to enter all figures related to your business’s purchases, sales, and VAT amounts.

The VAT 201 form is divided into seven key sections. Here’s a breakdown of what each section includes: 

1. Taxpayer Details

Basic information like your TRN (Tax Registration Number), business name, and contact info. 

2. VAT Return Period 

This includes the start and end dates of the tax period you’re filing for (monthly or quarterly), plus the filing due date. 

3. VAT on Sales and Other Outputs 

Here, you report: 

• VAT is collected on your sales and services 

• Details of standard-rated, zero-rated, and exempt supplies 

• Sales within the UAE and exports

4. VAT on Expenses and Other Inputs 

This section is for: 

• VAT you’ve paid on business purchases 

• Recoverable input VAT (e.g., on rent, supplies, etc.)

5. Net VAT Due 

This is the calculation part: 

• If Output VAT > Input VAT, you need to pay the difference 

• If Input VAT > Output VAT, you may be eligible for a refund or carry it forward. 

6. Additional Reporting Requirements 

You’ll provide extra details if needed, for example, reverse-charge transactions, import VAT, or any adjustments. 

7. Declaration and Authorised Signatory

The final section is where you confirm that all information is correct and provide the name and details of the person submitting the form.

Note: Keep all invoices, receipts, and supporting documents ready while filling out the form. It helps ensure accuracy and avoids issues during audits. 

Pre-requisites for Filing VAT Returns in the UAE 

Before you can file your VAT returns in the UAE, there are a few essential steps to ensure you’re ready. Here’s what you need: 

1. VAT Registration with the Federal Tax Authority (FTA) 

To file VAT returns, your business must first be registered for VAT with the FTA. This involves obtaining a Tax Registration Number (TRN), which serves as your business’s unique VAT identification. Without this, you cannot file VAT returns or fulfil your tax obligations. 

2. Accurate Record-Keeping 

Maintaining accurate and up-to-date records of your business transactions is essential. These include: 

• Sales Records: Details of taxable and exempt sales. 

• Purchase Records: Invoices for expenses that include input VAT. 

• Expense Records: Any additional costs related to your business operations. 

These records are the foundation for calculating VAT owed or refundable and must be retained for at least five years for audit purposes. 

3. Access to the FTA e-Services Portal 

The FTA e-Services portal is the official platform for submitting VAT returns in the UAE. To use it, you’ll need: 

• A registered account on the portal. 

• Your Tax Registration Number (TRN) and login credentials. 

How To File VAT Return in UAE? 

VAT return filing in Dubai or the UAE is a straightforward process when you follow these steps: 

Step 1: Log in to the FTA e-Services Portal 

Visit the official FTA e-Services portal. Enter your Tax Registration Number (TRN) and password to access your account. 

Step 2: Navigate to the VAT Returns Section 

Once logged in, go to the “VAT Returns” section on the dashboard. Select the VAT return form (VAT 201) for the relevant tax period. 

Step 3: Fill in the VAT Return Form 

The VAT return form is divided into sections where you need to provide the following information: 

Taxable Sales and Output Tax: 

• Enter the total value of your taxable supplies (sales) and the VAT collected from customers. 

• Provide details for standard-rated supplies within the UAE and exports. 

Purchases and Input Tax: 

• Enter the total value of your taxable purchases and the VAT paid on them. 

• Ensure this includes expenses eligible for VAT recovery. 

Net VAT Amount: 

The system will calculate the difference between output tax and input tax to determine if the VAT payable or refundable. 

Step 4: Review the Form 

Double-check all the details for accuracy. Ensure there are no discrepancies between your records and the information entered. 

Step 5: Submit the VAT Return 

Click on “Submit” to file your VAT return. Once submitted, you will receive a confirmation message from the FTA. 

Step 6: Make the Payment (If Applicable) 

If your VAT return shows a payable amount, proceed to pay through the FTA portal. Payment can be made via: 

• E-Dirham or credit card. 

• Bank transfer using the provided GIBAN (Generated International Bank Account Number). 

Step 7: Retain a Copy for Records 

Save a copy of the filed VAT return and payment receipt for your records. These may be required during audits or for future references.

File your VAT return before the deadline to avoid penalties. If you notice errors after submission, you can correct them by filing a Voluntary Disclosure through the FTA portal. 

VAT Returns in UAE Contents 

The following two sections are in a VAT return in the UAE: –

The first section is the central section, which includes the taxpayer’s details, sales, purchases, and net VAT due. Moreover, the central section is mandatory for all VAT-registered businesses in the UAE.

The second section is the additional reporting requirements section, which only applies to certain businesses under specific conditions. Furthermore, this section includes fields related to the profit margin scheme. 

Main 

When you file VAT returns in the UAE, the central section contains all the necessary details pre-populated with the taxpayer’s data, including the tax year-end VAT stagger, tax form filing type, and submission date. In a UAE VAT return, the section that captures the taxpayer’s information is called Taxable Person Details.

This section includes the Tax Registration Number (TRN), the name of the business in both English and Arabic, and the registered address or place of residence of the company. 

VAT on Sales and all other Outputs 

The VAT on Sales and all other Outputs sections of the VAT return should contain details of all sales and supplies made by the taxpayer during the tax period. 

• The first column is for the total sales transaction amount, which includes the sum of sales values adjusted by debit or credit notes. The second value is the VAT amount collected, which also includes any adjustments to the VAT collected due to changes in the taxable value recorded in the previous column.
• Finally, the third value reflects any adjustments to output tax or VAT collected in the earlier tax period. 

VAT on Expenses and all other Inputs 

This series of sections presents information on all VAT purchases and expenses made during the tax period. 

• The total taxable business purchase amount is based on purchase invoices, including adjustments for supplier debit or credit notes and corrections from previous tax periods.
• The Recoverable VAT Amount, or the number of VAT refunds that can be claimed according to VAT law.
• Any adjustments made to the input tax (VAT paid on purchases). 

Net VAT Due 

Calculating the net VAT due is crucial in determining the amount of VAT a taxpayer owes to the government. To calculate the net VAT due, the total recoverable VAT is subtracted from the total output VAT payable. Furthermore, if the output VAT payable exceeds the recoverable VAT, the difference is the net VAT due, and you will need to pay the government.

The government may refund or carry forward a VAT credit to future VAT periods if their recoverable VAT is higher than the output VAT payable. This section helps to ensure that businesses accurately report and pay their VAT obligations in accordance with the law. 

Additional Reporting Requirements 

To comply with tax regulations, businesses that sell secondhand goods and have enrolled in the profit margin scheme must complete this section. They need to select “yes” to indicate their enrollment in the scheme, which applies VAT only to the profit from the sale of secondhand products. 

How to Correct Errors in VAT Returns in the UAE? 

Mistakes in VAT returns can happen, but it’s important to correct them promptly to avoid penalties and stay compliant with the UAE tax system. The Federal Tax Authority (FTA) allows businesses to correct errors through a process called Voluntary Disclosure. Here’s how you can do it: 

1. Log in to the FTA e-Services Portal 

Use your Tax Registration Number (TRN) and password to log in to your account. Once logged in, go to the “VAT” section and select the “Voluntary Disclosure” option. 

2. Select the Relevant VAT Return 

Choose the VAT return period where the error occurred. 

3. Explain the Error 

Clearly describe the mistake, including the nature of the error (whether it’s related to sales, purchases, input tax, output tax, etc.). Specify the correct figures and how the error occurred. 

4. Submit the Voluntary Disclosure 

Review the information and submit the disclosure. The FTA will assess the correction and may require additional documentation or clarification. 

5. Pay Any Additional VAT 

If the correction results in additional VAT owed, ensure payment is made promptly to avoid further penalties. 

Situations Where Corrections Are Necessary 

You must file a voluntary disclosure if any of the following situations occur: 

• Incorrect Calculation of VAT Payable or Refundable (e.g., input tax claimed incorrectly, or sales figures misreported) 

• Omissions or Underreporting of Taxable Transactions 

• Incorrect VAT Classification (e.g., zero-rated supplies reported as taxable) 

• Overclaiming Input Tax 

• Late Registration 

You must file a voluntary disclosure within 20 business days from the date you become aware of the error. 

How Shuraa Tax Can Help? 

Knowing how to file VAT on time is very important for your business in the UAE. It helps you stay compliant with tax rules, avoid fines, and keep your business running smoothly. If you miss the deadline or make mistakes, you may face penalties that affect your finances.

We understand that VAT filing can be tricky, and even minor errors can cause problems. That’s why it’s a good idea to get professional help. Hiring a professional VAT consultant ensures your filings are accurate and submitted on time, giving you peace of mind and helping you avoid costly mistakes. 

At Shuraa Tax, we offer a complete range of VAT services, from registration and filing to ensuring compliance. Our team of experienced professionals will make the entire process easy and hassle-free. Whether it’s your first VAT return filing in Dubai or you need ongoing assistance, Shuraa Tax is here to help. Get in touch with us today at +971 508912062 or info@shuraatax.com to simplify your VAT process and keep your business on track. 

FAQs

Q1. Who needs to file VAT returns in the UAE?

Any business registered for VAT with the Federal Tax Authority (FTA) must file VAT returns. This includes businesses exceeding the mandatory threshold of AED 375,000 and those voluntarily registered above AED 187,500. 

Q2. How often are VAT returns filed in the UAE?

VAT returns are usually filed quarterly for most businesses, while larger businesses (with higher turnover) may need to file monthly, depending on their assigned tax period.  

Q3. What information is included in a VAT return?

A VAT return includes details of: 

• VAT collected on sales (output VAT)
• VAT paid on purchases (input VAT)
• Net VAT payable or refundable 

Q4. What is the deadline for filing VAT returns?

VAT returns must be submitted by the 28th day of the month following the tax period. Missing the deadline can result in penalties.

Q5. What happens if you make a mistake in your VAT return?

Errors can be corrected through a Voluntary Disclosure on the FTA portal. It’s important to fix mistakes promptly to avoid fines and compliance issues.