How can I register for UAE VAT and file a VAT return in the UAE?

Guide to VAT Return Filing in the UAE

If you operate a business in the UAE, understanding the process of VAT return filing is essential. Here’s a comprehensive overview to help you navigate VAT filing procedures effectively.

Overview of VAT Filing in UAE:

For businesses registered for VAT in the UAE, filing VAT returns is a crucial step. This involves calculating taxable income, expenses, VAT liability or refund, completing VAT return forms, electronically submitting them via the FTA e-Services portal, responding to FTA inquiries within specified timelines, and maintaining accurate records.

VAT Registration Requirements:

VAT registration in the UAE is mandatory for businesses with annual taxable supplies and imports exceeding AED 375,000. For those with annual taxable supplies and imports between AED 187,500 and AED 375,000, registration is voluntary.

How to Register for VAT:

According to VAT regulations, businesses must submit a VAT registration application online, along with required supporting documents such as a copy of the business license, turnover declaration letter, and directors’ and shareholders’ passport copies. Upon approval by the FTA, the applicant receives a VAT registration number, which must be included in all tax invoices.

Importance of VAT Return Filing:

Regular VAT return filing ensures VAT compliance for businesses in the UAE. Returns must be submitted electronically via the FTA portal or authorized VAT agents. Timely submission and payment of VAT liabilities are crucial to avoid fines. Maintaining updated records is essential to facilitate smooth VAT return filing.

Drafting a VAT Return:

To file a VAT return, businesses must track various types of supplies, VAT on sales and purchases, and arrive at the net VAT payable or refund due. VAT returns must be filed within 28 days following the conclusion of each VAT return period.

Steps for VAT Return Filing in UAE:

• Taxpayers must access the EMARTAX portal using login credentials created during registration.
• VAT returns are prepared and immediately submitted via the portal.
• Top tax professionals in the UAE offer services to assist with VAT return preparation and submission.
• Accurate record-keeping of sales, purchases, and VAT payments is essential.
• Procedure for VAT Refund:
• Access the FTA’s web portal at tax.gov.ae.
• Select the option to file a return in the e-services section.
• Log in to the FTA service site and complete the VAT form with accurate information.
• Double-check for accuracy and completeness before submission.
• Make the final payment through the “My Payments” tab.

By following these guidelines, businesses in the UAE can ensure compliance with VAT regulations and streamline the VAT return filing process.