Here are all the important things you must know about VAT return filing in UAE

VAT (value-added tax) Registration is compulsory for all the businesses operating with a turnover of AED 375,000. Introduced on January 1st, 2008, Vat applies to companies that sell and go beyond the pre-determined yearly turn over the limit. Before we guide you about VAT return filing in UAE, let us brief you about some salient features and essential aspects of all that process. After you understand all the basics, it will not be difficult for you to choose the best VAT Compliance solution in the UAE.

Why shall you register for VAT?

As mentioned previously, VAT conformity is required if your company has gone beyond the obligatory limit fixed by the Government. If this holds true and also you are not registered for VAT, you might be running the risk of a high fine from the FTA. That is why you must go through the registration process.

The scenario of VAT is not as difficult to understand as it initially appears to most of the business owners in UAE; however, You must keep some points in mind for a crystal clear view of the whole procedure. Let us discuss these points in a systematic order.

How the Government Gauge the VAT?

The legislative requirement forall the VAT deals is that they must be submitted carefully plus periodically to the FTA in the form of VAT return filing in UAE. It is also crucial in the sense that by doing this, the Authorities would be able to evaluate the VAT you obtained, compared to the amount you have spent or paid in this regard. Any type of dissimilarity is receivable/ refundable from the Govt. on every three months or month-to-month schedule or according to the tax obligation time frame stated in tax obligation enrollment certification.

How to submit VAT return in UAE?

You have 28 days previous your tax obligation day to submit your VAT; as a result, if your quarter is ending on July 31st, you have time till August 28th to submit. All registered companies are bound to file a VAT return digitally. It can be done most conveniently by signing up at the FTA.

The most notable point in this regard is that a business or service cannot complete its VAT filing procedure all by itself; a licensed agent will do that on their behalf. The reason behind hiring an accredited VAT business agent is that it will make sure that there is no mistake and the submission as per schedule.

What happens afterward?

As soon as your VAT return is submitted, a comparison will be between the VAT amounts you got and also the VAT you paid. The distinction between these two quantities will certainly be payable to the tax obligation department or based on reimburse to you, business proprietor. In the outcome of repayment, you will certainly have a choice to take the reimbursement instantly or roll it over right into your following tax obligation duration to counter your VAT in the coming quarter.

We are more than hopeful that the above information will prove to be helpful whenever you have to submit your VAT return in the UAE.


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