A Comprehensive Guide to Filing VAT Returns in Dubai

VAT Consultancy in Dubai

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We surely acknowledge that filing in VAT returns in Dubai can be a tediously complex process. However,as a business owner, it is imperative to assure that one complies with the tax laws and regulations to avoid possible penalizations. We’re here to arm you with a fully loaded comprehensive guide answering all the how-tos when filing  VAT returns in Dubai.

Understanding VAT returns in Dubai

Value Added Tax (VAT) is a specific form of an indirect tax that is levied on the consumption of most goods and services.

The standard rate of VAT in Dubai is about 5%. However,as VAT is levied on most goods and services, including imports. Being a business owner in the UAE , it is imperative as your responsibility to charge VAT to your customers and pay it  back to the national tax authorities.

Who Needs to File VAT Returns in Dubai?

All businesses that are deemed registered for VAT in Dubai are essentially mandated to file VAT returns. Including even businesses with no recorded sales. Even if your business hasn’t recorded any sales over the last year, you are still mandated to file in a nil VAT return.

When Should You File VAT Returns in Dubai?

VAT returns in Dubai are filed always on a quarterly basis. The due date for filing VAT returns is almost 28 days after the end of all tax periods. The tax period spans across three months, initiating on the first day of January, April, July, and October.

Procedure for Filing VAT Returns in Dubai

The entire procedure for successfully filing a VAT return in Dubai is summarized below:

Step 1: Check Your VAT Return Period

Prior to filing your VAT returns, ones cross-check their VAT return period. The standard VAT return period spans usually across three months. One needs to make sure that they are filing their VAT return within that allocated time frame.

Step 2: Segregate & collect all Invoices and Receipts

One needs to segregate and carefully collect all the invoices and receipts that are generated within the VAT period. One should log in a record of all transactions including the purchases and sales that have made during the VAT period.

Step 3: Calculate & Assess Your VAT liabilities.

Having collected the invoices and receipts, it’s now time to calculate your VAT liability. Do this by subtracting the input VAT from the output VAT.

The input VAT refers to the VAT you paid on purchases, and the output VAT is the VAT that is charged on sales.

Step 4: Digitally File Your VAT Returns Online

Having calculated your VAT liability accurately, there’s now the need to digitally file your VAT return online. It can be done via the Federal Tax Authority’s (FTA) e-Services portal. By simply logging using your VAT registration number and password. Once logged in, simply select the option to file your VAT return. & That’s it.

Step 5: Pay All Your VAT Liabilities & Dues

Post filling your VAT return, you will need to pay your VAT liabilities. One can do this via the FTA’s e-Services portal. Simply log in to the portal using your VAT registration number and password. And once logged in, select the option to make a payment.

Step 6: opt in for Our Exclusive VAT Consultation Service in Dubai

Filing VAT returns in Dubai can be a highly complex and time-intensive process. And if you are looking for some professional assistance, our VAT consultation service can surely be of some great help. Our highly skilled and seasoned team of tax experts can guide you through the entire mechanism of filing VAT returns in Dubai, always ensuring that you fully comply within the national tax laws and regulations.

By opting for our VAT consultation services, you can save valuable time and effort, by diverting your resources on running your business well. As we take care of the aspects for your seamless VAT returns, right from collecting and segregating invoices and receipts to filing forms online and paying your liabilities Our team has you fully covered and updated on any sudden changes to the existing VAT laws structure and its related Government regulations, ensuring that you are always on the right page whenever it comes to taxes.

Get in touch with us Now to learn more about all our VAT consultation services in Dubai.

Parting Thoughts

Filing VAT returns in Dubai can be a challenging and complex process for some, but it is imperative and undeniably important to assure a legalized compliance with the nation’s tax laws and regulations to avoid any rebuttal and penalizations. We have listed above a fully comprehensive guide on how to successfully file VAT returns in Dubai without much hiccups. And following these key steps can ensure that you are filing all your VAT returns with precision on time.

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