Introduced on January 1, 2018, by the Federal Tax Authority (FTA) at a standard rate of 5%, Value Added Tax (VAT) is a key component of the UAE’s tax system. Companies running in the UAE have to make sure they follow VAT rules including prompt VAT return submissions. The VAT return filing procedure, compliance criteria, and the function of VAT advisors in Dubai in guaranteeing seamless operations will all be covered in this tutorial.
VAT return filing in the UAE is what?
Businesses registered under UAE VAT legislation are required to file VAT returns. A regular filing to the FTA, it describes the VAT paid to suppliers (Input VAT) and the VAT received from consumers (Output VAT). The difference decides whether a company qualifies for a refund or has to pay more VAT.
VAT procedures – Filing of Returns in the UAE
- VAT Registration – Companies with taxable income over AED 375,000 must register for VAT. Companies making more than AED 187,500 may register voluntarily.
- Keep accurate financial records – Including invoices, receipts, and tax reports.
- Tax Period – Business turnover determines the VAT return filing frequency. As the FTA directs, it could be quarterly or monthly.
- Log in to the FTA portal – Fill out the VAT return form, and send it in before the due date.
- VAT Payment or Refund – Depending on calculations, companies either pay the owed VAT amount or seek a VAT refund should the input VAT exceed output VAT.
Why VAT Compliance is Important?
Ignoring VAT rules could result in significant fines such as:
- Late Filing Penalty: AED 1,000 for the first offence, rising to AED 2,000 for consecutive offences within 24 months.
- Neglecting to Keep Records: Non-compliance could result in fines of up to AED 50,000.
- Wrong VAT Returns: Penalties beginning at 5% to 50% depending on the outstanding VAT sum.
How Can VAT Advisors in Dubai Assist?
Dealing with VAT returns can be difficult and time-consuming. Dubaian professional VAT advisers guarantee compliance by:
- Filing and preparing VAT returns correctly.
- Helping with FTA questions and VAT audits.
- Consulting on VAT exemptions and reimbursements.
- Keeping your company informed about tax legislation modifications.
Obtain UAE Expert VAT Services
Professional VAT services in Dubai guarantee compliance and lower risks, hence facilitating hassle-free VAT return filing. Working with Herald UAE gives you access to top VAT experts in UAE who simplify the tax filing procedure.
Conclusion
For seamless operations and FTA compliance, companies in the UAE have to follow legislative requirements: VAT return filing. Businesses can prevent fines and optimise tax efficiency by following the appropriate filing procedure and cooperating with the top VAT advisers in UAE.
Require VAT filing help?
Reach Herald UAE right now for professional VAT filing and compliance help!
