With the UAE moving toward full digital tax compliance, the Federal Tax Authority (FTA) has introduced API based e- VAT returns as a part of UAE's API Marketplace initiative. The authorities has called on app and software service providers to utilise the Application Programming Interfaces (APIs) of the UAE government to provide seamless VAT filing services.
This means that VAT software service providers will now integrate their ERP/taxation software with the EmaraTax portal. This will allow businesses to upload VAT returns to the portal from the software directly.
Currently, uploading and filing VAT returns on EmaraTax is manual with businesses logging into the portal, filling in the VAT return form, and submitting the return followed by the tax payment. The government is seeking to make this process easier for businesses by allowing direct upload of VAT returns from third party software.
What is UAE e-VAT Returns
UAE e-VAT returns refer to the digital process of submitting tax returns directly from the in-house ERP/taxation software to the EmaraTax portal. By using UAE e-Returns, taxpayers can submit returns, request refunds, view tax records, and manage compliance tasks from a centralised digital platform. The system is integrated with UAE PASS, the national digital identity solution, to ensure secure access and identity verification.
Under the tax law, VAT-registered entities are obligated to submit periodic VAT returns, typically on a quarterly or monthly basis, via the EmaraTax portal. The e-Returns system facilitates this process by providing a centralised, secure platform for filing returns, reporting taxable supplies and purchases, calculating payable or refundable VAT, and making payments to the FTA.
Simply put, right from your business management software, you can directly access EmaraTax portal and upload returns eliminating the separate login and manual filling of VAT return details.
How will the new change benefit businesses?
The introduction of UAE e-VAT returns offers significant advantages for VAT-registered businesses in the UAE. It benefits the companies in the following ways:
- Since there is no manual upload of data involved, e-VAT returns will significantly reduce the risk of human errors.
- The direct upload process saves a lot of time by facilitating faster preparation and submission of returns compared to the time-consuming manual calculations, paperwork, and corrections involved in the earlier process.
- Businesses can view the complete list of VAT returns and their current status in real time directly within the software.
- Business can submit amendments and voluntary disclosures right from the software.
- Businesses will receive an immediate confirmation of filing of VAT returns directly within the software to help validate successful filing.
e-VAT Returns mark a major leap in the FTA’s mission to digitise the tax ecosystem. For VAT-registered businesses, it can automate VAT filing and reduce inaccuracies and penalties.
