How to file VAT Return in Dubai

VAT (Value Added Tax) is all set to implement in Dubai in January 2018. The government, as well as many private institutions, are releasing new information regularly to help people and businesses get familiar with the new tax system as smoothly as possible. Among many things VAT related, one of the most important is VAT tax returns.

As per the normal VAT standard, the returns are filed quarterly, i.e., once in 3 months, or annually in some cases. The VAT returns will be filed online on the official portal of the Federal tax authority. Businesses that are looking forward to making a smooth transition to the new tax system must get familiar with the return filing procedure under VAT in Dubai. In this article, you will learn the same.

What is a VAT Return and Why is it important?

A VAT return is the formal document/statement of the VAT liability of a taxpayer for a particular tax period. It contains the details of VAT liability of the person, tax paid by him, etc. for a tax month or quarter.

VAT returns are important because they contain the records of the tax paid by the users in a given period. It is a formal document that works as a proof that the certain party has paid their tax. The government needs these records to maintain a proper taxation system where each individual pays his/her tax liability on time. These are used by the tax authorities for performing auditing and other activities as per the tax laws. Your VAT return contains the summary of your total earning and the value-added tax paid by your on that earning for that particular period.

Schedule (Due Dates) for VAT Return Filing in UAE

Although the actual dates for filing VAT returns are not yet been announced by the authorities, it is being estimated that the returns will be filed monthly or quarterly based on certain conditions like type and size of the business. Each eligible individual and business in Dubai will be required to register on the portal and file their tax returns as per the schedule. It is important to file VAT returns on time in order to keep good accounts with the authorities and to run a business properly.

As a VAT registered firm, you should file regular quarterly/monthly tax returns, even if you have not done any business or paid tax in a given period.

Procedure for Filing VAT Returns in UAE

The VAT tax returns will most probably be filed online, and there will be no facility for filing tax returns offline or manually. So, the businesses need to get themselves familiar with the online VAT filing process. Upon registration on the VAT portal, each taxpayer will be given a unique TIN and password for their online account on the website. These details are to be used to file returns online. Follow the steps below.

1. Visit the online portal of the Federal Tax Authority at tax.gov.ae
2. Click the return filing option under the e-services section of the portal
3. Log in using your TIN and password
4. Fill in the VAT return form with the details of your business, transactions, tax liability, penalties (if any), etc.
5. Upload the required documents, bills, etc.
6. Verify the details filled by you and submit the form

The exact procedure for filing UAE VAT returns will be revealed only after the launch of VAT in UAE, however, the process is more or less likely to be the same as mentioned above.

There are many audit firms, tax consultants and accountants in Dubai who can help you with the VAT implementation, rules and return filing once the new tax system is launched in the country.