VAT Filing Service
Top-Class VAT Filing Services in Dubai
Businesses and individuals who are VAT registered must file a Dubai VAT return with the Federal Tax Authority (FTA) at the end of each tax period. During a tax period, a taxable person purchases and supplies goods and services, and a VAT return shows the value of these purchases and supplies. VAT filing Dubai can be done online by businesses, which they can do through the Federal Tax Authority (FTA) website. For a given tax period, VAT liability is equal to the difference between the output tax (VAT charged on goods and services) and the input tax (VAT that must be paid on purchases). Whenever the output tax is greater than the input tax, FTA must be paid the difference. In the case of an excess input tax over output tax, the excess input tax can be recovered by a taxable person; the excess input tax can be deducted from any future FTA payments.
At the moment, Dubai VAT return can only be submitted on the FTA portal via an online mode, as offline submission options such as XML, EXCEL, or other utilities are not offered. Input values need to be entered manually to reflect Sales, Purchases, Output VAT, Input VAT, etc. into the VAT filing form available on the FTA website, commonly called Form VAT 201.
Do Businesses have to File VAT Returns on a Regular Basis?
VAT returns must be filed by taxable businesses with the FTA regularly, and usually within 28 days of the end of their ‘tax period’ as determined by their type of business.
Tax periods are defined as specific periods of time during which tax is due and payable.
According to standard taxation, there are two taxation periods:
- Companies with a turnover of less than AED150 million are taxed quarterly
- Companies with a turnover of AED150 million or more are taxed monthly
Certain types of businesses may have a different tax period, at the FTA’s discretion. The violator is liable for penalties if he or she fails to file a tax return within the deadline set forth by the provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.
It must be noted that on both the UAE mainland and the free zones, VAT is charged equally on tax-registered businesses. In such a case, unless the UAE Cabinet deems a particular free zone a designated zone, the zone must be considered outside the UAE in taxation terms. Goods will not incur taxes when transferred between designated zones.
Business income, costs, and VAT charges must be carefully documented by the business. Businesses and traders who are registered will charge VAT at the prevailing rate to their customers, and they will incur VAT on the goods/services they purchase from suppliers. Any difference between these amounts is either reclaimed or paid to the government.
Let us Understand the Nature of VAT Returns
VAT return comprises of two sections:
- The main section contains information about the taxpayer, sales, purchases, and net VAT owed.
- A section on additional reporting requirements that only applies to certain businesses and under certain conditions. The margin scheme, stock exchanges, and VAT paid in other compliance states are included in this section.
The main section is divided into two sections namely, Taxable Person Details and VAT Return Period. The reporting requirements comprise VAT on sales and all other outputs, VAT on expenses and all other input, Net VAT Due, Additional reporting requirements, and Declaration and Authorized Signatory. In order to file for VAT in Dubai, taxpayers are required to fill in numerous boxes containing the asked for information.
The tax year ends are crucial for businesses that are unable to recover all of their input VAT and require input tax proportional adjustments every year. The tax year ends are the only time when adjustments may be made. During the tax year, you will be required to file Dubai VAT return within the defined period. During the tax year, you are required to file VAT returns at least three times per year. We provide quality and timely VAT filing service in Dubai / Abu Dhabi on a monthly and quarterly basis. Our company provides auditing and accounting services in Dubai as a professional firm of Chartered Accountants. We have a team of expert accountants, auditors, and business consultants with extensive experience in accounting, auditing, and consulting.
The Work Scope for Filing VAT Returns
In order to prepare the VAT Return, your company will be visited by a VAT expert on a monthly or quarterly basis. Your company will receive the VAT filing Dubai / Abu Dhabi from our VAT filing company in Dubai at the end of each VAT return period in accordance with the FTA regulations. In each tax period, the VAT filing service in Dubai / Abu Dhabi UAE will complete the process within the specified timeframe. As per FTA, we will ensure that all financial operations of your company are VAT compliant. In compliance with the existing FTA regulations, our VAT filing services Abu Dhabi or VAT filing service in Dubai are much of a sought after service by acclaimed businesses in Dubai, Abu Dhabi, and other emirates.
A review and verification will be conducted of the VAT filing related transactions to ensure that sales are taxed correctly and that the VAT charged by suppliers is claimed correctly. Our suggestions and opinions will be based on the latest VAT trends and updates to avoid VAT fines from FTA. A random audit of the books of account and documentation will be conducted to ensure VAT compliance. Please contact our FTA representatives to learn more about VAT filing in Dubai and VAT filing in Abu Dhabi.
For a UAE business to be VAT compliant, all rules and regulations set forth by FTA must be followed, including filing the VAT on time, obtaining appropriate VAT invoices, keeping accurate books of accounts and records, among many other mandatory obligations.
We offer a wide range of VAT filing service in Dubai and Abu Dhabi. By guiding businesses in the right direction, we not only provide the best VAT services but also help them avoid VAT fines and penalties. We can take care of all of your VAT requirements in Dubai and Abu Dhabi, UAE. Contact us today for hassle-free VAT filing in Dubai or VAT filing in Abu Dhabi.