VAT return FAQ's
Starting from 1st January, 2018, businesses in UAE are required to be VAT Compliant. One of the requirements to be VAT compliant is filing of VAT return. Most of the businesses in UAE are required to file quarterly returns and few types of businesses may be requested to file returns on a monthly basis.
To help you understand the VAT return topic easily, the following short and crisp FAQ's are created, which will answer most of your questions on VAT return.
1. Is it Mandatory for every registered business to file VAT return in UAE?
A. Yes, it is mandatory for all the registered businesses to submit the VAT return.
2. How will I file my VAT return in UAE?
A. VAT return in UAE should be filed online. A registered business is required to prepare the VAT return file in the prescribed format and file it online in the FTA website.
3. Will I be allowed to file physical VAT return?
A. All the VAT returns will be accepted only in online mode.
4. What is the Return Filing Period in UAE VAT?
A. The standard VAT return filing period is on a quarterly basis. Only few businesses are expected to file VAT return on a monthly basis.
5. What is the due date to submit VAT return in UAE?
A. The last date to file VAT return is 28th of the subsequent month following the end of the tax period.
6. Is there any format in which the VAT returns need to be submitted?
A. Yes, the authority has prescribed the VAT Return Format in which the details of supplies need to be furnished by the registered person.
7. What is return file format which is accepted by the FTA?
A. Currently, the details in VAT return form needs to be manually furnished by logging to FTA site
8. What are the details to be furnished in VAT return form?
A. Broadly, the details of all your supplies â€“ both purchases and sales, output tax, input tax, input tax recovered, and tax due needs to be furnished in VAT Return form.
9. Do I need to declare the details of supplies at emirate level in VAT return?
A. Yes, emirate-wise supplies need to be declared in the VAT return form.
10. I supply goods which are taxable at 5% VAT and export goods to different countries. How should I declare the details in the VAT return form?
A. The VAT return form is designed to show both taxable supplies liable for standard rate of VAT at 5% and zero-rated supplies separately. In your case, you need to declare standard rated VAT supplies and zero-rated supplies separately.
11. I have imported the goods on which VAT is paid on a reverse charge basis. How should I declare the details in VAT return?
A. The VAT return form contains a separate field for import of goods, in which you need to furnish the details.
12. My input tax amount is more than the output tax. How will I adjust and declare in the VAT return?
A. In the above case, it will result in VAT refundable which can be carried forward to the next VAT return period or claim refund.
13. Can I generate the VAT return file from my software and file my return online?
A. Yes, you are allowed to generate the VAT return file from any software which is certified by FTA. Only those return files which are generated from certified software will be allowed .
14. What will be the consequence of not filing the VAT return?
A. Failure to submit VAT return may lead to tax assessment and you may be liable to pay administrative penalties.
15. What is the amount of administrative penalties applicable for non-filing of VAT return?
A. The administrative penalty will not be less than 500 Dirhams but not exceeding three times the amount of tax in respect of which the administrative penalty was levied.