{"id":8874,"date":"2022-05-24T06:38:50","date_gmt":"2022-05-24T06:38:50","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/new-learn?p=8874"},"modified":"2025-06-13T17:14:11","modified_gmt":"2025-06-13T11:44:11","slug":"procedure-of-vat-return-filing-in-dubai","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/procedure-of-vat-return-filing-in-dubai\/","title":{"rendered":"Procedure of VAT Return Filing in Dubai"},"content":{"rendered":"

Value Added Tax (VAT) is a tax imposed on every level of product value addition across the supply chain. It is imposed at every point of sale, from the producer to the final customer. This is accomplished by enabling tax paid on purchases, also known as \u201cinput VAT,\u201d to be offset against VAT received on sales, also known as \u201coutput VAT.\u201d The customer ultimately pays the whole tax.<\/p>\n

The COVID-19 epidemic has influenced everything. As a result, the UAE government has taken several steps to assist enterprises, both onshore and offshore. The solutions include lowering renewal costs and altering employment restrictions to provide firms with more flexibility during the pandemic. Some of these measures are described in more detail below. The UAE\u2019s federal government has implemented the \u2018Targeted Economic Support Scheme\u2019 as a major measure. This initiative was launched on March 15, 2020, to provide aid to private firms that have been harmed by the epidemic.<\/p>\n

The plan explains how\u00a0private<\/strong> companies<\/strong><\/a> can get relief from principal and interest payments on existing loans. The proposal involves a fund of AED 50 billion that will be given with no interest. The UAE Central Bank said on April 20, 2020, that 30% of the capital has been used. This will aid in the elimination of the liquidity issues that firms are experiencing. In Abu Dhabi and Dubai, further safeguards have been implemented. The following are a few of them. For the next three months, Dubai\u2019s 2.5 per cent market tax has been suspended for all facilities operating in the city. Additionally, for the next three months, power and water costs will be reduced by 10% for both business and residential customers. Industrial and commercial penalties have been lifted in Abu Dhabi. Furthermore, until the end of 2020, all cars are exempt from paying road tolls. The registration costs for commercial and private real estate<\/strong><\/a>\u00a0have been stopped in Abu Dhabi. Fee reductions have been implemented in the UAE\u2019s free zones. For example, until March 25, 2021, the ADGM has waived 100 percent of Data Protection renewal payments. It has granted a 50% exemption from the new FSRA Supervision costs, which must be paid until December 31, 2020.<\/p>\n

The JAFZA has announced that new enterprises will be exempt from paying licensing costs for the first year. By the end of the second quarter of 2020, the DIFC announced that it would offer a 10% discount on renewal costs for current licensees. The DMCC has announced a 50% reduction in the registration charge for new businesses<\/strong><\/em>. Some procedures are also applicable to all Dubai-free zones. There are numerous employment laws in force in the Dubai free zones. For example, there are rules in place to ensure that workers are retained by their employers. For the \u2018Emergency Period,\u2019 which runs through July 31, 2020, the DIFC has proposed employment restrictions. Employees, for example, will be obliged to keep track of how many employees are in surplus and how many have been sacked since March 1, 2020. Access to the workplace might be restricted, unpaid leave can be imposed, and working hours can be reduced.<\/p>\n

Filing of VAT Return in UAE<\/h2>\n

Filing VAT returns in the UAE<\/strong><\/span><\/a>\u00a0entails a number of stages. If you want to know what each box signifies and how to fill it out, seek for a VAT return sample. However, here is a rough list of stages to assist you have a better picture of what the return entails.<\/p>\n

Step 1: Access the Services Portal<\/h3>\n

You must log in to the FTA\u2019s e-services site using the username and password associated with your VAT account. After that, you\u2019ll get a dashboard screen with a summary of your active tax registration<\/strong><\/em>\u00a0with the FTA.<\/p>\n

Step 2: VAT Tab<\/h3>\n

On the top of the screen, click the VAT tab in the navigation bar. Then choose VAT 201 \u2013 VAT refund from the drop-down menu. Then select the \u2018VAT 201 \u2013 New VAT Return\u2019 option. This is when the\u00a0VAT\u00a0return filing<\/strong><\/span><\/a>\u00a0procedure gets started.<\/p>\n

Step 3: Details of the Taxable Person<\/h3>\n

You must fill in all of your information in this area. TRN (Tax Registration<\/strong><\/em> Number), the taxable person\u2019s name, and the taxable person\u2019s address are examples. Details such as TAAN, TAN, agent name, and agency name will be shown on top of the return if a tax agent is paying the tax on behalf of the taxpayer.<\/p>\n

Step 4: Period of VAT Return<\/h3>\n

The details of this section will be shown to you automatically. The VAT return period for which you are submitting, the tax year-end, the VAT return due date, and the VAT return period reference number are all included. VAT on sales and all other outputs is the fifth step. Standard-rated supplies, exempt supplies, zero-rated supplies, supplies subject to the reverse charge provisions, products that have been imported into the UAE, and modifications made on the items that have been imported into the UAE will all be required. VAT on costs and all other inputs is the sixth step. The VAT tax rate in the UAE is 5%. You will need to enter all information about the costs or purchases for which you paid the 5% VAT in this area. You\u2019ll have to provide information on the supplies that are subject to the reverse charge mechanism.<\/p>\n

Step 5: Net VAT Due<\/h3>\n

This contains the entire amount of owed tax, recoverable tax, and paid tax during the given time. The tax payable will be determined using sales and other output information. The amount of tax that can be recovered will be determined by the costs and other input information. The difference between output and input VAT is the due tax. After submitting the VAT return form, if the output VAT is greater than the input VAT, you can request a refund by filling out the VAT Refund Form VAT 311.<\/p>\n

Step 6: Any Additional Reporting Requirements<\/h3>\n

This section applies to people who have used the \u201cProfit Margin Scheme,\u201d and it has no bearing on your VAT return. If you haven\u2019t yet implemented the scheme, select the \u2018No\u2019 option and move on to the next stage.<\/p>\n

Step 7: Declaration<\/h3>\n

You can submit the VAT return using the \u2018Declaration and Authorized Signatory\u2019 section. You must check the declaration box before proceeding to submit your return. After you submit your return, the FTA will send you an email. Multiple leading sources of accounting software can assist you in managing all of your accounting needs. They can assist all SMEs in running their businesses with simplicity and pleasure. You can run your business from anywhere, thanks to the user-friendly software. It includes a variety of features to make accounting easier, including inventory management, cost management, API connectivity, and more. With these experts, VAT filing is straightforward and automated, allowing you to focus on operating your business while leaving the difficult responsibilities to the professionals.<\/p>\n

Revised Dates of VAT Returns in UAE<\/h2>\n

The UAE government is doing everything it can to stop COVID-19 from spreading by restricting the mobility of cars and people. Because the deadlines for filing VAT returns clashed with these events, the Federal Tax Authority (FTA) has moved the VAT return due to May 28th, 2020, for the tax period that concluded on March 31st. VAT-registered individuals can now file their returns by the new return date in the UAE, which is April 28th, 2020, as opposed to the prior deadline of April 28th, 2020. This change was made to provide VAT registrants additional time to file their taxes.<\/p>\n

According to the FTA\u2019s instructions, enterprises that have registered for VAT must pay their taxes and file reports by May 28th. This covers those with monthly tax periods as well as those with quarterly tax periods. People who have monthly tax periods must pay their taxes and submit their VAT returns by May 28th, 2020, for the period from March 1st to March 31st, 2020. People with quarterly tax periods must pay their taxes and file their returns by May 28th, 2020, for the period beginning January 1st and ending March 31st, 2020.<\/p>\n

The UAE government has made things easier by allowing VAT returns to be filed online using the FTA platform. The FTA has advised VAT registrants to double-check that any data they provide is correct and error-free. The FTA offers all of its services online, allowing anybody to file their taxes anytime they wish. Registration, tax payment, and\u00a0return filing are among the services<\/strong><\/em>\u00a0available. It\u2019s important to remember that this only applies to the tax period that concluded on March 31, 2020. Other deadlines for tax periods that do not fall in April 2020 have not changed as a result of this.<\/p>\n

VAT Compliance Checklist<\/h2>\n

The following are the items you should include in the checklist for earning an easy and 100% compliance of your business with VAT in the UAE:<\/p>\n

1. Understanding of VAT<\/h3>\n

The UAE government has provided several tools for businesses to learn about UAE VAT and its rules through its website and other means. It is critical to review all of the information provided on the government\u2019s website. They\u2019ve included articles and other resources to help you learn about VAT and its legislation so you can stay compliant and understand how it impacts your business. You may even contact specialists for further information about this. It\u2019s also crucial to determine whether or not this applies to your merchandise.<\/p>\n