VAT Return filing in UAE
VAT return filing is an integral component of VAT system used for the purpose of reporting the VAT collected and paid by the entity to the tax authority during the given specific time period. VAT Return Filing Services in UAE offer comprehensive VAT services with expert professionals to take care of all your VAT affairs and transactions.
A&A Associate provides one of the best and leading VAT Return Filing in Dubai ensuring great peace of mind for our clients. We deal with complete VAT affairs and reduce the burden on your business.
What is VAT return filing in the UAE?
VAT return filing simply states how much VAT is to be paid or repaid by the tax authorities. Usually, VAT return is done quarterly and allows businesses to track the right financial path.
While carrying out your business, it’s better to be VAT compliant to avoid any unnecessary kind of penalty that becomes a hindrance in the way.
How companies process VAT return filing in the UAE?
Businesses file their VAT return using FTA or Federal tax authority portal and enter the details on VAT 201 form. The taxpayer should log in to the FTA e-services portal and access the VAT 201-VAT return form.
Enter the following details in the form,
- Information of the taxable person
- VAT return period
- Sales and output VAT
- Expense and input VAT
- Net VAT due
- Report requirements
- Authorized signatory and declaration
After submitting the application with all the required details, FTA confirms the submission of VAT return form through an email. After submitting VAT return, the taxpayer should pay the due tax through any of the payment channels like exchange houses, E-dirham, online transfer, over the counter payment, etc.
Significance of VAT Return Filing in the UAE
Implementing VAT filing process or being VAT compliant protects your business with a legal assurance. VAT holds the upper hand in the arena of tax payments and avoids any financial loss.
VAT return filing services in UAE offers the following benefits,
- Investment and personal savings – one of the great reasons to institute VAT system is simply it encourages investment and personal savings.
- Quick revenue – transparent indirect tax, making it less burden to customers, which is fragmented at various stages like supply, distribution, production of goods and services.
- Smooth business dealing – Organizations in UAE prefer establishing business with SMEs and companies registered with VAT. So, if you doesn’t produce proper VAT invoice, then companies will hesitate your deal.
- Your business image gets highlighted under VAT law
- Easy to manage compared to other indirect tax
Penalties and fine associated with VAT Return filing in the UAE
VAT fines and penalties are charged in UAE for non-compliance of VAT laws. Some of the VAT fines and penalties applicable to a VAT registered person in case of any non-compliance,
- If taxable person fails to register within the specific timeline then penalty of AED 20,000/- is applicable to such business.
- If the taxable person fails to apply for VAT deregistration within the specified time, then penalty of AED 10,000 shall be applicable to such business.
- When goods are sold, it’s mandatory to display price that must be inclusive of tax. If not, administrative penalty of AED 15,000 shall be applicable to the taxable person.
- A VAT registered person has the responsibility to submit their VAT returns within 28th of the following month, if there is any delay in submitting the VAT return, then AED 2,000/- would be levied.
- Every VAT registered person should maintain their book of records and documents that support all transactions. VAT return filing in Dubai support such services providing right documents at the right time.
- A taxable person should submit voluntary disclosure form to rectify any omission or error in VAT returns. AED 3000 is the fixed penalty charged for submitting the Voluntary disclosure form and for the second time, its AED 5000.
Some of the common errors businesses make while VAT Return Filing in the UAE
- Poor maintenance of records
- Mistake in calculating and paying VAT amount
- Improper planning
- Hiring wrong resources
- Failure in issuing valid tax invoice
- Poor understanding of VAT laws
- Improper accounting setup
Misinterpretation of VAT legislation has resulted in lot of mistakes related to input tax deduction. VAT legislation allows reclaiming input VAT paid to the suppliers of goods and services.
How A & A assist you in VAT return filing services in UAE?
A&A Associate has been dealing with businesses in setting their accounts, taxation, and finance domain. We have been developing outstanding services and retaining happy clients at a global level.
Our VAT services include the following,
- We compile all the relevant documents for VAT return filing and prepare returns at the end of each tax period.
- Exploit any loopholes and pay minimum tax liability
- Stand as your representative
- Ensure timely returns
VAT is not a tedious process with A&A Associate; our business experts start from the scratch and deal VAT affairs with great transparency.
We ensure better understanding of your business and maximize your profit by providing the best VAT return filing in Dubai, We share your burden, providing dedicated VAT return filing services in UAE. Our qualified tax experts guide you through all the rules and regulations as well as updated VAT laws in the Emirates.