For many business owners in the UAE, the process of filing VAT can be complicated and time-consuming. This is where accounting outsourcing companies come in handy, as they offer a comprehensive range of services, including VAT filing. Let’s learn the steps involved in VAT filing in the UAE and explore how accounting outsourcing can be a game-changer for your business. So, whether you are a seasoned business owner or a new entrepreneur, read on to find everything you need to know about VAT filing and accounting outsourcing in the UAE.

What is VAT Return Filing

In the UAE, all taxable businesses must submit VAT returns after registering for VAT and receiving their Tax Registration Number (TRN). The standard tax period for filing a VAT return is once every three months, although some businesses may have to file monthly. The specific VAT return filing period will be mentioned on the business’s VAT certificate, and failure to file VAT returns within the designated time frame given by the Federal Tax Authority (FTA) is not allowed.

Scope of Registering for VAT

To register for VAT in the UAE, companies must meet the turnover threshold. Businesses with annual taxable supplies and imports exceeding AED 375,000 are required to register for VAT, while those with an annual taxable supply and import value above AED 187,500 can voluntarily register.

To comply with VAT regulations, companies must follow a multi-step process for VAT return filing, including calculating their VAT liability, filling out the necessary forms, and submitting them electronically through the FTA e-Services portal. It is also important to respond to any inquiries from the FTA within 14 days and maintain accurate records.

How to Register for VAT in the UAE?

To register for VAT in the UAE, businesses need to complete and submit a VAT registration application form along with the necessary supporting documents, such as a business license, trade name certificate, and passport copies of directors/shareholders, as per the Federal Tax Authority regulations. The entire process may take up to 5-10 working days. Once the application is approved, a VAT registration number will be issued by the FTA, which should be used during VAT return filing.

What is Filing a Return for VAT?

Businesses that are subject to VAT in the UAE are required to file VAT returns, which include details of their VAT payable or receivable and other relevant information about their business transactions during a designated period. These returns must be filed within 14 days of the end of each VAT Return period, which typically lasts for three months.

Filing VAT Return: The Process

Taxpayers must register on the FED (Federal Tax Authority) site using their Emirates ID to access the VAT system and file VAT returns in the United Arab Emirates. An online platform dubbed “e-DIRECT” has also been established to facilitate this process by offering taxpayers facilities for filing VAT returns.

Various accounting outsourcing companies offer third-party VAT return filing services to taxpayers who may opt for this service, in addition to the FED portal and e-DIRECT platform. Experienced tax agents in the UAE provide reliable assistance in creating and submitting VAT returns to regulatory authorities promptly.

Importance of Maintaining Accurate Records

To make VAT return filing easier, businesses must maintain accurate records of their sales and purchases as per the UAE’s VAT regulations. It is also important to keep track of all VAT payments made or received during a specified period. Furthermore, businesses should be aware of any penalties they may incur if they fail to comply with VAT regulations or file late VAT returns.

How to Apply for VAT Return?

1. Visit the FTA online portal at tax.gov.ae as there are no offline ways of applying for VAT return filing in Dubai:To apply for VAT return filing in Dubai, you need to use the electronic media available through the FTA (Federal Tax Authority) online portal. There are no offline ways of applying for VAT return filing, so it is essential to access the FTA portal.
2. Click on the option of return filing under the e-services section:Once you have accessed the FTA portal, look for the option of filing a return under the e-services section. This will allow you to submit your application for VAT return filing.
3. Log in to the FTA service portal using your unique TIN and password:To access the return filing option, you need to log in to the service portal of the FTA using your unique TIN (Tax Identification Number) and password. This will ensure the security of your application and prevent any unauthorised access.
4. Fill in your VAT form with accurate details such as business details, transactions, tax liability, penalties (if any), sales, expenses, and required documents, bills, etc:Once you have accessed the return filing option and logged in, you need to fill out your VAT form with accurate details. These details may include your business details, transactions, tax liability, penalties (if any), sales, expenses, and required documents such as bills, receipts, and invoices.
5. Review your form accurately and ensure there are no mistakes before submitting it:This will reduce the risk of any errors or discrepancies that could lead to penalties or further complications.
6. Click on the submit button to submit your application form:After reviewing your form, click on the submit button to submit your application form. This will send your application to the FTA for processing.
7. Pay your last payment through the “my payments” tab:Once your application has been processed, you will need to pay your last payment through the “my payments” tab. This will ensure that your VAT return filing is complete and up-to-date.
8. Be aware of the last date for filing the application to avoid submitting it after the deadline.

Need A Helping Hand?

The process of filing VAT returns in the UAE can be complicated and time-consuming for many business owners. To simplify this process, accounting outsourcing companies offer a variety of services, including VAT filing. HTIC Global is an accounting outsourcing company in the UAE that offers VAT filing services and can help businesses simplify their tax processes. Choose HTIC Global, one of the best accounting outsourcing companies in the UAE, for your VAT filing and VAT return filing needs, and free yourself from the worry of dealing with VAT!