The VAT was never present in GCC countries. Such that it is introduced as a new step taken to bring in an extra source of income. Thus, the UAE being part of one of the GCC countries, has to implement the same. These countries have never had the concept of VAT and being introduced to something this new is quite tricky to understand.
Hence for the business owners, investors, entrepreneurs to have a better understanding of VAT return filing, UAE becomes equally crucial. Having a piece of greater knowledge about VAT is regarded as a boost as it will help in availing higher VAT returns. Also, it provides a holistic overview of the operational activities associated with a company and how it is calculated.
Thus, if you hold a business in UAE, then this guide will enable you to have complete knowledge about the procedure of VAT return filling UAE. Check it out.
What is a VAT return filing?
VAT return filing is the form that has to be filled regarding the VAT sales and expenditures made in a particular period. VAT return filing helps a corporation understand the amount of VAT that has to be paid or how much of a refund request to be initiated. Consultation of a chartered accountant firm can help you know more about this.
Guide to filing VAT returns.
- Login to the federal TAX authority’s portal.
First and foremost, you will have to log in to the FTA portal with a registered username and password. Then navigate through the website to find the options of VAT 201 and then select the option of VAT 201 NEW VAT return. After clicking this option, the VAT return filing process will be initiated.
- Fill in the details of the taxable person.
Once the filing process has been initiated, the next step is to fill in the person under which the tax would be filled. It should be carried out only through a TRN number along with a name and address. You can skip the hassle by consulting a tax consultant that would assist you in every step of the way to no miss out on any crucial details and fill the form on your behalf.
- Choose the VAT return period.
All the necessary information regarding the VAT return period must and should be filled. It states the period between which you filling for VAT returns; the TAX years end. It’s necessary and crucial for all business entitled companies to ensure that they can recover all their necessary VAT proceedings that are calculated and performed in a particular year.
- Details of VAT on sales and other expenses.
All the information that might be associated with the sales and expenses that are made in one fiscal year must and should be updated. Information such as exempt supplies, zero-related supplies must be mentioned. Thus, the details of VAT expenses that are made at 5% must and should be mentioned.
- Calculate the net VAT due.
Once all the information about the sales and expenses are mentioned, the NET value will be automatically calculated. To calculate the overall VAT that you are held accountable to pay, check the VAT amount. If it is higher than the recoverable amount, then the difference is what you have to pay as VAT. If it’s vice versa, then you are eligible to claim a VAT refund. Hence, this calculation represents the TAX that you are held accountable to pay for a particular, fiscal year.
- Declaration and signature from authorized personals.
The last and final step would be the tick the declaration section in the form. At this point, you can save the draft and submit it at any given point or a later period.
Therefore, through the above-given steps, VAT return filing can be carried out. Failure to do so can result in severe consequences and fines, as well. Thus, the best option to consult a chartered accountant firm to avail services of VAT return filings.
