What is the VAT Return?
The official document to be finalized by the Taxable Person and relinquished to the Federal Tax Authority (“FTA”) at regular periods documenting any output taxes outstanding and input tariff recoverable and encompassing any other data that is expected to be provided. There are several VAT Consultants in the UAE to help you with this endeavor.
The steps for VAT Return filing UAE are as follows:
- Step 1: Login to the portal of Federal Tax Authority at www.tax.gov.ae with the password and registered a user name.
- Step 2: Click on VAT 201 – New VAT Return alternative under the e-services category of the portal to commence the VAT Return form.
- Step 3. Fill up the contents of standard-rated supplies from box 1a to 1g.
- Step 4: Treatment of Tax Refunds given to Tourists: This is the tax refund treatment to tourists under the tax refunds for tourist strategy.
- Step 5: Supplies subject to the reverse fee provisions. Goods imported via UAE customs will be documented under Step No. 8 below. In this step, the services which were imported during the period will be incorporated.
- Step 6: Zero-rated allowances
In this step, we have to encompass all the supplies made below zero rated vat (“zero-rated supplies”). Since the VAT on supply is evaluated at Nil, only the net value of the supply would be stated here.
- Step 7: Exempt supplies
This step encompasses only the exempted supplies prepared during the period. As there is no VAT on such type of supplies, only the net cost of the supply is to be asserted in this Box.
- Step 8: Commodities received into the UAE
Goods that have been imported via UAE customs are to be divulged under this step. The number of customs declared value (CIF) and the customs duty amount would be the proportion to be exhibited as the value of an import. This amount will incorporate the excise duty as well if the commodity is taxable below Excise law. 5% tax on above has to be revealed as tax payable. This amount will be automatically calculated in your VAT Return form.
- Step 9: Adjustments to commodities imported into the UAE:
In case there are any revisions or mistakes on the figure divulged under Step No. 8, rectification can be accomplished by using Step No. 9.
- Step 10: Standard rated expenditures
This step is for all the expenditures about the standard rate of VAT to recoup the Input Tax. This comprised of the buying of goods from the local market as well. The total payment of the purchase and costs made for which you want to benefit from the Input Tax, the figure should be stated in the “Amount (AED)” column. This column should only encompass the VAT you will be able to regain and not the complete value of VAT that you have incurred on all expenses.
- Step 11: Supplies subject to the reverse charge provisions:
All output tax expected under the reverse charge mechanism that has been noted in Step No. 5, 8 & 9 above, can be regained under this step. On expenditures where VAT is incurred and falling under the Reverse Charge Mechanism for which Input Tax is not recoverable, those tolls should not be noted in this step.
- Step 12: Calculation of outstanding tax or recoverable tax for the duration:
The distinction between output vat and input vat is the proportion owed the government during that duration. In cases where the Output figure is higher than the Input figure, there is a prerequisite to request for reimbursement for the net amount of recoverable taxation.
- Step 13: Step for a refund of extra recoverable tax.
The Option for net recoverable tax would be accessible on the VAT recovery for return of excess tax. There will be two alternatives ‘YES’ & ‘NO’. If you select ‘YES’, kindly fill and finalize the VAT Refund Form VAT 311 once VAT Return Form is submitted. If you choose ‘No’, your additional tax amount to be reclaimed will be taken ahead for the Subsequent Tax Period which can be utilized to pay for subsequent tax duration or liabilities.
- Step 14: Submission of the VAT Return form:
During the preparation of VAT Return form at all levels cited above, you can conserve as a draft in between and proceed at a later stage. Once you finish your review, you can click the submit button. Once you provide the VAT Return Form, you will obtain an email upon submission for assurance.