How to File a VAT Return in the UAE
Businesses registered for VAT in the UAE are required to file their VAT returns regularly with the Federal Tax Authority (FTA) through the EMARATAX portal. This process ensures compliance with VAT regulations and helps maintain accurate financial reporting.
In this guide, we’ll break down the steps to file your VAT return, explain key terms, highlight the documents and deadlines, and include helpful video guides from the FTA.
What is a VAT Return?
A VAT return is a formal document summarizing a business’s sales, purchases, and VAT liability for a specific tax period. It outlines:
- Output VAT: VAT collected from customers on taxable sales.
- Input VAT: VAT paid on business expenses or purchases.
- Net VAT: The difference between output VAT and input VAT, determining the amount payable or refundable.
Example: If your business collects AED 10,000 in output VAT but pays AED 8,000 in input VAT, your net VAT liability is AED 2,000, payable to the FTA.
When Are VAT Returns Due?
The FTA defines tax periods as monthly or quarterly, based on your annual turnover:
- Monthly Filing: For businesses with annual turnover above AED 150 million.
- Quarterly Filing: For businesses with annual turnover below AED 150 million.
- Deadline: VAT returns must be filed within 28 days after the end of the tax period.
Tip: Always mark your calendar with deadlines to avoid penalties for late filing.
Steps to File a VAT Return
Follow these step-by-step instructions to file your VAT return via the EMARATAX portal:
- Log in: Access the EMARATAX portal at eservices.tax.gov.ae using your registered credentials.
- Select Filing: Navigate to VAT → My Filings and click File for the relevant tax period.
- Enter Details: Provide information on sales and output VAT, purchases and input VAT, and imports, exports, and adjustments (if any).
- Review: Carefully check all entered details and ensure accuracy.
- Submit: Agree to the declaration and submit your VAT return. Save the confirmation reference number for future reference.
- Make Payment: Pay any VAT due within the specified deadline to avoid penalties.
Note: You can edit your submitted return until the filing deadline. Ensure that all financial records are updated before submission.
Video Guides from the FTA
Getting Started
Completing Box 1
Completing Box 6 to 8
Completing Box 9
Completing Box 10 to 14
Submitting Your VAT Return
Conclusion
Filing VAT returns is a critical responsibility for UAE businesses. By following the proper steps, meeting deadlines, and maintaining accurate records, businesses can ensure compliance and avoid penalties. For detailed guidance, consult with a tax professional or visit the FTA website.
