Every taxable person in the UAE is required to submit a VAT return to the FTA as per the stipulated time. According to Article 64, VAT filings should be submitted to the FTA on the 28th day following the end of the three-calendar month, and the authorities will decide the date. It will be notified to you via email. Failing to submit the VAT returns within the deadline can lead to severe consequences, and only tax consultants in Dubai can help you get out from the post-penalization.

So, what precisely a tax agent can do for you? The list goes on! They can help you comply with tax norms, manage records, prepare tax reports, and file a VAT return.

Details to be Included in a Tax Return

As per the information revealed by the FTA, the VAT return should contain all the details listed below:

Name and address of the applicant
Mention the tax period related to the VAT return filing
Date of Submission
Value of Taxable supplies made in the Tax period and the supplies subjected to zero rates
Value of Exempt supplies made in the Tax period.
Value of any supplies subjected to Clauses (1), (3) of Article (48)
The Payable Tax for the Tax Period

Few of the terms mentioned here are new to you or don’t know how to arrange these things? Exactly! Not everyone is equipped with this knowledge. Only experienced and certified professional VAT Consultants in Dubai can assist in providing all the details as requested by the FTA.

Steps to File a VAT Tax Return to FTA (Federal Tax Authority)

The VAT tax filing can be done online via FTA’s portal. To initiate the VAT filing process, the below steps need to be followed:

Login into the portal by using the registered name and password.
Select the VAT tab and choose ‘VAT Returns 201 – New VAT’ to file a new VAT return.
Start filling up the required in the returns section by providing all the information on – Sales, expenses, debits/credits, and profits/losses within the company.
After filling in the date, the system will calculate the payable tax amount after excluding the VAT amount from the returns.
Once it’s done, make sure to double-check the data. This is the most crucial step as it determines whether your tax filings will be approved or not. So, it’s better to use a tax consultant to do so.
Check "My Payment" and make sure all the dues are paid. And if there is anything, make sure to pay it before the due date to avoid any consequences and fines.

The outcome of Filing a VAT Tax Return without Complying with the FTA Rules

Want to know the consequences of failing to comply with the FTA? The result of filing a VAT Tax return without complying with the rules and regulations of FTA (Federal Tax Authority) can lead to hefty penalties. Some of the major penalties regarding the VAT UAE Tax filing are listed as follows:

Missing Deadlines

If you fail to file the UAE Vat Return on time, the FTA will impose a penalty of AED 1000 on your company. If you repeat the offence, you will be liable to pay a fine of AED 2000.

Filling with Incorrect Details

Filing the VAT return with incorrect details can make you liable for a penalty in the UAE. For the first time, the penalty will be AED 3000, and for the second time, it will be AED 5000.

Failing to Voluntary Disclose Errors

If you fail to disclose errors voluntarily in the tax return, you will be entitled to a fixed penalty of AED 3000 for the first time, and it will be AED 5000 for the second time.

Now you understand why business owners in the UAE hire a tax consultant to take care of their tax filings.

Get Assistance from Professional Tax Consultants in Dubai, UAE

As you know, dealing with VAT return filing in Dubai is a complex process, and providing misleading information can lead to penalties. So, to avoid unwanted fines and make your tax filing process hassle-free, you can get help from MTR Expert. We are registered and certified tax agents in Dubai. With a team of experienced professionals, we can execute the UAE VAT return filing process for all businesses of all sizes. Contact us now – we’re just a click away!

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