VAT Return Filing Services

When you do the VAT Return filing in UAE, your details like your name, your address, TRN, current VAT Return Period, Tax year-end, VAT return period reference number, VAT Return submission due date will be generated automatically. 

At the same time, the following things are to be noted down: –

• The payable amount must be in UAE Dirhams (AED).
• The payable amounts should be rounded off.
• Fill all the mandatory fields 
• If there is no amount to be stated, enter ‘0’(Zero)
• Provide details of taxable supplies as emirate wise 

The importance of accurate and timely VAT Filing

• Avoids penalties
• Reimbursement of input tax
• Reimbursement of tax on import of goods through the Reverse Charge Mechanism
• Reduces or zeroes the risk of errors in VAT filing
• Increases the credibility of the business in the market and enhances the goodwill

Particulars to be furnished under Taxable Supplies 

• For Standard Rated Supplies 

Include the following details for standard-rated supplies: –

• The sales of goods and services subject to VAT 
• Sales of goods and services at a discounted rate (after deducting the discount value)
• Deposits received as part payment
• Inter-company sales (if you don’t have a Tax Group registration in place)
• The sale of business properties
• Deemed supplies, which are above the relevant limits
• Reimbursements of expenses from customers (Recharges)
• The full value of goods sold under the profit margin scheme
• Sales of goods located within Designated Zones where the goods are spent within the Zone
• Reductions in value due to credit notes issued
• Errors that are allowed to correct for previous Tax Periods.

The following things should be excluded: –

• Sales of goods located within designated zones and not consumed within the designated zone
• Out of scope supplies
• Zero-rated supplies, such as exports of goods or services outside the UAE
•  Zero-rated educational services
• Zero-rated healthcare services
• Disbursements

• Standard Rated Expenses (Purchase of Goods & Services)

Include the following details for standard-rated expenses: –

• Goods or services purchased for business purposes from VAT-registered suppliers that were subject to VAT 
• Goods or services which were purchased at a discount
• The total price that you have paid for the goods purchased, which you are selling under the profit margin scheme
• Goods or services purchased before your tax registration and for which you wish and are able to claim the tax incurred. The claim must be made in your first VAT return
• Reductions in value due to credit notes received from suppliers
• Errors that you are allowed to correct for previous tax periods.

The following things should be excluded for standard-rated expenses: –

• Exempt or zero-rated purchases
• Expenses which were incurred to make exempt or non-business supplies
• Purchases of goods located within designated zones which were not consumed in the designated zone or subsequently imported into the UAE mainland
• Purchases from members of the same tax group
• Fines and penalty charges received e.g. Traffic fines
• Wages and salaries
• Expenses where the input tax is specifically disallowed

• Zero Rated Supplies

Include the following details for Zero-rated supplies: –

• Exports of goods and services outside the UAE.
• Local supplies of certain educational services and related goods and services
• Local supplies of certain healthcare services (e.g. preventive and basic healthcare services and related goods and services)
• Supplies or imports of investment precious metals
• Supplies of crude oil and natural gas

• Exempt Supplies

Include the following details for Exempt rated supplies: –

• Local supplies of certain financial services
• Supplies of residential buildings through sale or lease, other than the ones subject to the zero rates of VAT
• Supplies of bare land
• Supplies of local passenger transport

• Supplies Subject to Reverse Charge

• Services received from foreign suppliers which are subject to the standard rate of VAT 
• Services received from foreign suppliers which are subject to the zero rates of VAT 
• Goods received which are subject to the reverse charge provisions and have not been declared to UAE customs 
• Local supplies subject to the reverse charge 
• Imports of goods into the UAE through UAE customs that have already been reported in your customs declarations 
• Imports of goods from agents on behalf of an unregistered person 

Some important points to be noted down:

• Name of the Form to file VAT Return is VAT 201
• Name of the Form to claim Input refund is VAT 311
• If there is no business transaction for the Tax Period, you are required to submit a “nil” VAT Return by the respective due date
• Once the date of the supply has taken place, the Taxable Person must account for the output tax in the VAT Return covering that Tax Period
• Supplies within Designated Zone, out of scope supplies and disbursements are not required to be reported in the VAT return
• It is possible to make adjustments in the pre-populated VAT amount on import of goods in case there is any error at customs end
• Failure in the payment before the due date would result in a late payment penalty consisting of:

• (2%) of the unpaid tax immediately levied once the payment of Payable Tax is being late
• (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid
• (1%) daily penalty will be charged on any amount that is still unpaid for one calendar month following the deadline for payment with an upper ceiling of (300%)

Once the process of entry is completed in the VAT Return Form, the net amount payable will be automatically calculated. If the payable value is negative, you can either request for a refund or you can carry forward the amount for the next Tax period.