VAT RETURN FILING SERVICE

VAT Return Filing Service in UAE

VAT Return Filing Service in UAE

 

A tax return is a document through which a tax registrant submits the details of his supplies and purchases to the Federal Tax Authority (FTA) in the UAE.

VAT Return filing in the UAE depends on the tax periods allotted to your business by FTA upon VAT Registration. FTA, during the approval stages of VAT registration, determines the tax periods for registrants which can be monthly or quarterly as the authority may deem fit.

VAT Return Filing in the UAE is completely an online process through which a tax registrant can present the value of their sales and purchases and remit the tax due.

In cases where the supplies are lower than the purchases, a VAT registrant can apply for a tax refund. Application of tax refund is a separate procedure and requires submission of further details as sought by the FTA.

VAT Return Filing in the UAE does not require submission of documents such as tax invoice, tax credit notes at the time of return filing. The registrant is responsible to maintain all the documents related to his business and need to furnish it as and when sought by FTA.

VAT Return Filing Service in Dubai, UAE

Importance of VAT Return Filing in the UAE

Emirates Chartered Accountants Group - Pioneers in VAT Return Filing Service in Dubai, UAE.

 

Call for Consultation
Pradeep Sai | Partner
Mob: +971 556530001
Email: sai@emiratesca.com

 

 

Importance of VAT Return Filing in the UAE

As a tax registrant in UAE, it is the responsibility of a business to report the details of its supplies to the authority. Comparing to the other tax regimes, VAT return filing in the UAE is relatively a simple process provided you understand the law thoroughly.

As it is construed an uncomplicated process, we have seen a lot of businesses taking it lightly and end up paying hefty penalties. Therefore, it is very important that you file your VAT return properly and on time.

Penalties associated with VAT Return filing in the UAE

  • If a taxable person fails to file his return on or before the due date, he will incur a non-filing penalty 1,000 for the first time. 2,000 in case of repetition.
  • If a taxable person fails to remit his dues on or before the due date, he will incur a non-payment penalty as follows:
    » 2% of the unpaid tax is due immediately.
    » 4% is due on the seventh day following the deadline for payment.
    » 1% daily penalty will be charged on any amount that is still unpaid one calendar month after the due date for payment, up to a maximum of 300%.

These VAT penalties will be automatically computed and charged to your FTA account from the date of default. Such VAT penalties can result in a huge cash outflow to a business which can be avoided if proper attention is given to tax return filing.

Some of the common errors businesses make while VAT Return Filing.

It is very crucial for a business to understand the layout and reasoning for each column in a VAT return. Only by a proper understanding of the law, one can understand the intended use of a particular column in a tax return.

Some of the most common errors we have noted are as follows:

  1.  Failure to issue a valid tax invoice as per provisions of law \
  2. Non-maintenance of proper records
  3. Wrong emirate-wise reporting
  4. Improper adjustment of Bad debts
  5. Wrong usage of ‘Adjustment’ column in case of imports
  6. Wrong classification between Exports and Out of Scope supplies
  7. Incorrect input claims including personal expenses and entertainment expense.
  8. Improper adjustment of Input taxes in wrong tax periods
  9. The wrong usage of Refund and VDF Forms
  10. Non-disclosure of Import of service

The above-mentioned VAT Return Filing errors are only the tip of an iceberg and can result in huge errors in the tax return. A business needs to be extremely careful in assessing its capability to address these issues as it may lead to non-compliance.

Our role in VAT Return Filing

Our members are seasoned by supporting more than 2000+ clients across the UAE in successfully submitting their tax returns. We consider it our responsibility to keep ourselves updated in the ever-changing tax scenarios in the region.

We can advise you on the accurate tax treatments of your business by analyzing your transactions and identifying the tax points involved in them.

As VAT Consultants in UAE, with our expertise and knowledge in the related field after encountering practical scenarios which we face on a day to day basis, we shall extend our guidance, support, execution and resolution on the all your challenges encountered which will be based on the provisions and guidelines issued by FTA.

VAT Return Filing Service in Dubai
Mr Pradeep Sai
sai@emiratesca.com
+971 – 556530001

VAT Return Filing Service in Abu Dhabi
Mr Navaneeth
nav@emiratesca.com
+971 – 558892750

VAT Return Filing Service in Northern Emirate
Mr Praveen
praveen@emiratesca.com
+971 – 508873115

 

> TAX UPDATES - SEPTEMBER 2020

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VAT Return Filing Service

People usually ask

Ans: Yes, you have to file your return regularly irrespective of whether you have any transaction or not.

Ans: Yes, as per UAE VAT Law, you are eligible to claim the expenses you’ve incurred before tax registration.

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