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VAT Returns Filing

Engage a Value Added Tax expert to ensure your tax returns are filed accurately and promptly.

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VAT Returns Filing

It is essential for businesses to collect VAT from customers on the goods and services they provide, as well as pay VAT on products or services purchased or imported from suppliers. As a result, businesses will have multiple VAT collection and payment transactions over a given period. Reporting these transactions and calculating the net amount due forms the basis of VAT return filing in the UAE.

Filing VAT returns is a key requirement under UAE VAT laws. Timely and accurate compliance not only boosts your credibility in the local market but also ensures smoother interactions with customers and suppliers. Additionally, the VAT system supports personal savings and investment by promoting financial transparency.

Benefits of VAT return filing

Quick Revenue Generation

VAT is a transparent indirect tax that minimizes the burden on consumers, allowing for efficient revenue collection at various stages, including supply, distribution, and production of goods and services.

Facilitates Smooth Business Transactions

Organizations in the UAE often prefer to work with SMEs and companies that are VAT-registered. Failing to provide a proper VAT invoice can deter potential business partnerships.

Enhances Business Reputation

Operating under VAT regulations can enhance your business's credibility and image in the market.

Encourages Investment and Personal Savings

One of the key advantages of the VAT system is its ability to stimulate both investment and personal savings.

Our VAT Returns Filing Services

Litrix Business Solutions is a trusted leader in VAT consultancy across the UAE. Our services are tailored to ensure full compliance with VAT regulations. We assist with VAT registration, deregistration, refunds, audits, and health checks, providing comprehensive support throughout the process. Our expertise extends to VAT return filing, ensuring your submissions are accurate, timely, and fully compliant.

VAT Return Filing Process

VAT filing in the UAE requires that the applicant be VAT-registered. We assist you throughout this process to ensure completeness, accuracy, and timely submission.

Here are the steps for VAT filing in the UAE:

Step 1: Log in to the Portal

VAT returns must be filed online; there is no offline option. We will access the FTA’s online portal on your behalf. In the e-Services section, we will select the return filing option. To log in, you’ll need to provide us with your unique TIN and password.

VAT Return Filing Process

Step 2: Fill out the Form

Next, we will complete the application form with the following necessary details:

  • Business name, address, owner information, and branch details, along with TIN
  • Transaction details
  • Sales and expenses
  • Output tax payable
  • Input tax collected
  • Net amount excluding VAT
  • VAT liability amount
  • Any penalties imposed by the FTA
  • Authorized signatory and declaration

We will carefully review all information to ensure accuracy and that no fields are left blank before submission. Once everything is checked, we will submit the form.

Step 3: Pay the Tax Amount

After submission, the FTA will send a confirmation email. We will also handle the payment of the due VAT on your behalf through the appropriate payment methods. This ensures a smooth process, helping you avoid non-compliance penalties and unnecessary duplication of work.

Penalties and Fines for VAT Return Filing in the UAE

In the UAE, penalties and fines are imposed for non-compliance with VAT regulations. Below are some of the key fines applicable to VAT-registered entities:

  • Failure to Register: If a taxable person does not register within the designated timeframe, a penalty of AED 20,000 will be incurred.
  • Failure to Apply for Deregistration: A penalty of AED 10,000 applies if a taxable person fails to submit a VAT deregistration application within the specified period.
  • Failure to Display Inclusive Pricing: When selling goods, it is mandatory to display prices that include VAT. If this requirement is not met, an administrative penalty of AED 15,000 will be imposed.
  • Late Submission of VAT Returns: VAT registered persons are required to submit their VAT returns by the 28th of the following month. A delay in filing will result in a penalty of AED 2,000.
  • Every VAT-registered entity is required to keep accurate records and documentation to support all transactions. VAT return filing services in Dubai assist in providing the necessary documents at the appropriate times.
  • If a taxable person needs to correct any omissions or errors in their VAT returns, they must submit a voluntary disclosure form. A fixed penalty of AED 3,000 is imposed for the first submission of this form, and AED 5,000 for subsequent submissions.

FAQS

What is the deadline for submitting VAT returns in the UAE?

A company in the UAE is required to submit VAT returns within 28 days after the end of the VAT return period. For example, if your VAT return period runs from April to June, your VAT returns must be filed by July 28th. The standard tax period varies by business size: if your annual turnover exceeds AED 150 million, the tax period is one month; for other businesses, it is quarterly.

What are the consequences of forgetting to file VAT returns or submitting incorrect returns?

If you delay filing VAT returns in the UAE, the FTA will impose a fine of AED 1,000 for the first instance and AED 2,000 for subsequent delays. In case your VAT return contains any errors or omissions, you can submit a voluntary disclosure form to correct them. The penalty for submitting a voluntary disclosure form is AED 3,000, increasing to AED 5,000 for a second occurrence.

What is the profit margin scheme?

Vendors selling secondhand goods can take advantage of the profit margin scheme under UAE VAT laws. While their inputs are exempt from VAT, the FTA applies VAT only on the profit made from the sale of these secondhand items.

OUR VAT SERVICES INCLUDE THE FOLLOWINGS:

VAT Solutions
VAT FAQs
VAT Overview
VAT Consultants
VAT Fines
VAT De-Registration
VAT Implementation
VAT Assessment and Appeals
VAT Refund Assistance
VAT Compliance Audit

If You Are Interested?

Contact us today for a consultation, and let’s get your business up and running in just a few days. Together, we can turn your vision into reality!

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