What is a VAT return in the UAE?
A VAT return is knowing or calculating how much tax amount a business should pay or reimburse from the Federal Tax Authority.
A VAT return figure will be calculated on the basis of total taxable income or revenue and total taxable expenditure or purchases. In the UAE if the VAT is payable for the authority , the business should clear by paying it within the prescribed period, failure to do so may result in penalties. In other case or in case of reimburse the business can apply for refund from Federal Tax Authority. Once the authority accepts the refund application, the business will receive the refund.
How do I calculate my VAT return in the UAE?
The VAT return will be found by calculating the VAT due on Sale –output VAT, minus the VAT reclaimable on purchases – Input VAT. The result of by doing this is the payable tax for the period.in case the reclaimable is higher than the amount due then you’ll get a refund –VAT refund.
What is the process of VAT return filing in the UAE?
To file VAT return, the business should be registered for VAT. The VAT registration process normally takes 20 Business working days .Once you got registered for VAT , you can file your VAT on Federal Authority e portal also you can pay the due tax either online or through money exchange.
How do I file my VAT return in the UAE?
Vat Return Form 201:
To access the VAT return form 201 the tax payer should login to the portal of Federal Tax Authority using tax payer’s username and password. Once you landed on the dash board , you can see VAT on the top side of navigation menu, VAT-VAT Return Form 201- start the filing process.
Are VAT returns are difficult in the UAE?
Is it so difficult to complete a VAT return in the UAE? It depends on the size and structure of the business. If your business is small in size and you have only limited regular transactions it’s easy to submit in each quarter without any help. But if your business deals with so many things like Zero rated sales, Export, Import, Reverse Charge Mechanism , then it’s better for you to reach out consultants like us.