Once you have registered for VAT in the UAE, you are obligatory to file your VAT return and make related VAT payments within 28 days from the end of your tax period on VAT Return Form 201 available at FTA`s websitehttps://eservices.tax.gov.ae
For each Tax Period, a Taxable Person will be required to submit a VAT Return which contains details regarding the supplies made or received by the Taxable Person otherwise Vat fines will be charging.
Usually standard Tax Period is three calendar months. The FTA may, at its discretion, assign a different Tax Period other than the standard one, to a Taxable Person.
Taxable person needs to submit VAT return to the FTA no later than the 28th day following the end of the Tax Period concerned or by such other date as fixed by the FTA. Where a payment is due to the FTA, it must be paid to FTA by the same deadline to avoid penalties
Filing VAT Returns For each Tax Period, the Taxable Person needs to report details as per applicability in relation to standard rated sales in relevant Emirates column supplies under RCM, zero rated sales, Goods Imports in UAE (Pre-Populated), adjustments in imports and all expense/purchases.
Steps to complete the process of submitting a VAT Return Form
1. Login to the FTA eservices portal and go to the ‘VAT’ tab whereby you will be able to access your VAT Returns. From this screen you should click on the option to open your VAT Return.
2. Complete the Form:
Fill in the following details:
the sales and all other outputs as well as on expenses and all other inputs as follows:
the net amounts excluding VAT; and
- the VAT amount; Based on your Payable Tax for the Tax Period proceed to a payment of any payable
- tax to the FTA or request (if you wish) a VAT refund; and Provide the additional reporting requirements in relation to the use of the Profit Margin Scheme during the relevant Tax Period.
3. Submit the Form: carefully review all of the information entered on the form after completing all mandatory fields and confirming the declaration. Once you confirm that all of the information included in the VAT Return is correct, click on the Submit button.
4. Pay the VAT Tax due (if applicable) through “My Payments” tab. Ensure payment deadlines are met.
VAT liability payment, Following are the payment options made operational by FTA:
- e-Dirham Card – Charges for payment via e-Dirham card would be Dh3 per transaction.
- Credit Cards (VISA or Master card) – Payment via credit card will incur a charge between 2 and 3 per cent of the total payment amount.
- Pay via Fund Transfer (GIBAN) – A taxable person can make a fund transfer from certain UAE financial institutions using the GIBAN provided by the FTA.
- Pay through AL Ansari Exchange or GCC Exchange – A taxable person can make payment through designated Exchanges by providing GIBAN to exchange. (Minimum Charges AED 20 plus 5% VAT)
VAT Fines & Penalties related VAT Return
Failure of the Registrant to submit a tax return within the time frame specified by the tax law.
- AED 1,000 for the first time.
- AED 2,000 in case of repetition within 24 months.
Failure to pay the tax stated in the tax return/tax assessment form within the time frame specified by the tax law. The taxable person will incur a late payment penalty as follows:
- 2% of the unpaid tax is due immediately.
- 4% is due on the seventh day following the deadline for payment.
- 1% daily penalty will be charged on any amount that is still unpaid one calendar month after the deadline for payment, up to a maximum of 300%.