Value Added Tax(VAT) Returns User Guide By

Apex Tax Accounting & Auditing Services

Brief overview of this user guide

This guide will help you navigate the e-Services portal, and is designed to be read in conjunction with the Taxable Person Guide for VAT to file your Value-Added Tax (“VAT”) Tax Return (Form VAT201). It is intended to help you:

Meet your compliance obligations in respect of VAT Return filing, payments of tax and obtaining VAT refunds.

Understand the icons and symbols included in the forms.

What is the VAT Return

The official document to be completed by the Taxable Person and submitted to the Federal Tax Authority (“FTA”) at regular intervals detailing any output tax due and input tax recoverable and including any other information that is required to be provided. In this guide, we will refer to it as the “VAT return”.

All VAT Returns should be submitted online using the FTA portal. The return can be submitted by the Taxable Person, or another person who has the right to do so on the Taxable Person’s behalf (for example, a Tax Agent or a Legal Representative).

Important notes about the VAT Return
Tax Period
  • A Tax Period is a specific period of time for which the Payable Tax shall be calculated and paid.
  • The standard Tax Period applicable to a Taxable Person shall be a period of three calendar months ending on the date that the FTA determines. The FTA may, at its discretion, assign a different Tax Period, other than the standard one, to a certain group of Taxable Persons (e.g. in some cases businesses may be required to file VAT returns on a monthly basis).
  • The VAT Return must be received by the FTA no later than the 28th day following the end of the Tax Period concerned or by such other date as directed by the FTA. Where a payment is due to the FTA, it must be received by the FTA by the same deadline.

Where the due date for the submission of the VAT Return and the corresponding payment falls on a weekend or a national holiday, the deadline for filing the VAT Return or making a payment is extended to the first business day thereafter.

If there is no business transaction for the tax period, you are required to submit a “nil” VAT Return by the respective due date.
Calculating tax liability

A registered person’s tax liability is simply the difference between the output tax payable for a given Tax Period and the input tax which is recoverable for the same Tax Period. Where the output tax exceeds the input tax amount, a payment of the difference must be made to the FTA.

Where the amount of input tax exceeds the amount of output tax, a Taxable Person is entitled to a refund of VAT from the FTA.

Filing VAT Returns

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.

With respect to sales and other outputs, the Taxable Person will need to report

  • Supplies of goods and services made which are subject to the standard rate of Vat per Emirate
  • tax refunds you have provided to tourists under the Tax Refunds for Tourists Scheme, if you are a retailer and provide tax refunds to tourists in the UAE under the official tourists refund scheme;
  • Supplies of goods and services received by the Taxable Person which are subject to the reverse charge provisions;
  • Supplies of goods and services made which are subject to the zero rate of VAT;
  • Supplies made which are exempt from VAT;
  • Goods imported into the UAE and have been declared through UAE customs;
  • Where applicable, adjustments to goods imported into the UAE and which have been declared through UAE Customs.
Talking of payroll management, we would like to mention that the experts associated with our firm know how to get the task done with absolute precision. You can simply choose to outsource your payroll processing and management task to us. Our experts shall prove to be helpful for you on the following grounds.
  • Employee benefit calculation
  • Employees’ End of Service calculation
  • Payroll processing via Wage Protection System
  • Timesheet Encoding

With respect to purchases and other inputs, the Taxable Person should report:

  • Purchases and expenses that were subject to the standard rate of VAT and for which you would like to recover VAT
  • Any supplies which were subject to the reverse charge for which you would like to recover input tax

The amounts of VAT charged and input tax recoverable by the Taxable Person would then need to be netted off in the Tax Return. The resulting amount is the net VAT payable to, or to be refunded by, the FTA (i.e. the net VAT position).

Completing and Submitting the VAT Return Form
Initiate the form

To initiate and access the VAT Return, you should login to the FTA e-Services portal using your registered username and password. In order to begin completing your VAT Return, go to the “VAT” tab on the navigation bar and then go to ‘VAT201 – VAT Returns’ tab. From this screen, click on ‘VAT201 – New VAT Return’ to initiate the VAT Return form.

vat-guide
Complete the form

The below section is a walkthrough of the form including the information required to be completed in each section:

Taxable Person Details

Details of the Taxable Person will be pre-populated and your input is not required. If a Taxable Person has appointed a Tax Agency and a Tax Agent, their details will also appear accordingly. This includes information such as the “TRN” or “Tax Registration Number” for the Taxable Person, as well as their name and address. If you are a Tax Agent submitting the VAT return on behalf of a Taxable Person, you will also see your “TAAN” or “Tax Agent Approval Number” and your associated “TAN” or “Tax Agency Number”, along with the Tax Agent and Tax Agency name populated at the top of the VAT Return. You will also be able to see your VAT Return submission due date here. Please check and ensure that all of this information is correct before going any further.

vat-guide
VAT Return Period

The form will automatically populate the ‘VAT Return Period’ for which you are currently filing for, the Tax Year end and VAT period reference number.

vat-guide
Common requirements when completing the VAT Return

When completing each box of the VAT Return, you must:

  • Insert all amounts in United Arab Emirates Dirhams (AED)
  • Insert all amounts to the nearest fils (the form allows for two decimal places)
  • Complete all mandatory fields
  • Use “0” where necessary and where there are no amounts to be declared
VAT on Sales and all other Outputs

Insert the amount details on sales and all other outputs as follows:

Amount (AED): Enter all amounts relating to sales and other outputs net of VAT and for each Emirate, where applicable, according to the provisions of the VAT legislation.You should also include reductions in value due to credit notes issued

VAT Amount (AED): Enter the VAT amounts relating to sales and other outputs and for each Emirate where applicable. You should also include reductions in the VAT amount due to credit notes issued.

Adjustment (AED): Use this column for any adjustments required to Output Tax as a result of adjustments for Bad Debts. All amounts entered should be VAT amounts only and can only be negative amounts. These should be reported for each Emirate, where applicable, in accordance with the respective Output Tax amounts being adjusted.

vat-guide
VAT on Expenses and all other Inputs

Fill in the VAT amount details on expenses and all other inputs.

vat-guide

Recoverable VAT amount (AED): Enter the amounts of recoverable VAT only (not total incurred VAT, in case your ability to recover input tax is restricted). You should also include changes in the VAT amount due to credit notes.

Net VAT Due

The following fields will indicate your payable tax for the Tax Period

vat-guide
Total value of due tax for the period

The total value of Output Tax that is due for the Tax Period will be calculated based on the above information. This will be the sum of the VAT and Adjustments columns in the Outputs section.

Total value of recoverable tax for the period

The total value of Input Tax that is recoverable for the Tax Period will be calculated based on the above information. This will be the sum of the VAT and Adjustments columns in the Inputs section.

Payable tax for the period

This will be the total due tax for the period less the total recoverable tax for the period and will indicate your net payable or recoverable tax for the current Tax Period.

If the figure in Box 12 is more than the figure in Box 13, the difference is the amount of VAT that you must pay. If the figure in Box 12 is less than the figure in Box 13, then you will be eligible to request a refund for the net amount of recoverable tax.

If you do not wish to request for a refund of the excess recoverable tax, your excess recoverable tax will be carried forward to subsequent Tax Periods and can be used to offset against payable tax and/or penalties, or you can apply for a refund later at any point in time.

Do you wish to request a refund for the above amount of excess recoverable tax.

If you are in a net recoverable position, an option will be available on the VAT Return to request a refund of the excess recoverable tax.

If ‘Yes’ is selected, you will be required to complete the VAT refund application (Form VAT311) after the VAT Return Form is submitted.

If you select ‘No’, your excess recoverable tax will be carried forward to subsequent Tax Periods and can be used to offset against payable tax and/or penalties.

Declaration and Authorized Signatory & Submission

Once you have finished filling in the VAT Return form, tick the box next to the declaration section.

Please note that all of the relevant authorized Signatory details and information will be prepopulated based on the information that has already been provided upon the completion of your Taxable Person records.

vat-guide

Once you are certain that all of the information is correct, click on the Submit button at the bottom right hand corner of the screen. After you have submitted the form you will receive an e-mail to confirm the submission

(Please look in your spam folder if you have not received it within 5 minutes).

Paying VAT

In order to pay for your VAT liability and administrative penalties, please follow the instructions below.

  • Navigate to the tab that displays “My Payments” vat-guide
  • Enter the amount that you need to pay, and click “Make Payment”. Please note that partial payments can be made i.e. you do not have to pay the entire amount due. However, make sure you pay the entire amount before due date to avoid penalty.You will then be directed to ‘Payment Information’ screen to proceed with the payment. Click on ‘Pay Now’ button to be directed to e-Dirham gateway.You may pay using the e-Dirham payment gateway which supports payments through an e-Dirham card or a credit card (Visa and Master Card only). A payment using an e-Dirham card will typically incur a charge of AED 3, while a payment using a credit card will typically incur a charge between 2% - 3% of the total payment amount. vat-guide vat-guide
  • Once you are redirected to the e- Dirham gateway, you will be able to make the payment through an e-Dirham or non e-Dirham card. After confirming the transaction, once the payment is processed successfully, you will be redirected to the FTA website. vat-guide

NOTE: You can view your Transaction History and Payments under the “VAT Transaction History” box placed within ‘My Payments’ tab as shown below. These include your transactions and payments for your periodic VAT Returns as well as any penalties that could be applicable in relation to your VAT Returns, if applicable (e.g. late filings or payments for your VAT Returns or other).

VAT Return Penalties
  • VAT Returns must be submitted within the specified deadline, otherwise a penalty of AED 1,000 will be imposed for the first time of occurrence of a delay. In case of repetitive non-compliance within 24 months, the penalty will be increased to AED 2,000 for each offence.
  • If you do not submit a VAT Return by the specified due date, the FTA may issue a tax assessment to you with an estimate of the payable tax. In such a case, you may be required to pay any payable tax assessed, penalty on non-submission of tax return and/or late payment penalty upon the issuance of the tax assessment (as applicable).
  • Following the submission of a VAT Return, the reported Payable Tax must be settled within the deadline. Failure in the payment before the due date would result in a late payment penalty consisting of:
    • (2%) of the unpaid tax immediately levied once the payment of Payable Tax is late
    • (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid
    • (1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of (300%).

Speak to one of our experienced advisors

Contact Us to get VAT registered or understand more about your VAT obligations.

OR

VAT Training Packages at the Best Price

Learn all the minute details about the latest tax regulations and become VAT ready with the finest VAT training packages at Uaevatexpert.ae.

1800 dhms/per person

VIEW DETAIL

Easy Way for VAT calculation , VAT filing and VAT invoices

Get in Touch with Us Today, and Make Your Firm More Functional

GET FREE Trial For Software

Recent Posts

Easy Way for VAT calculation , VAT filing and VAT invoices

×

Get
FREE TRIAL