What is VAT Returns Filing in UAE? 

VAT returns filing in UAE is the process of reporting a business’s taxable sales, taxable purchases, and VAT payable or refundable to the Federal Tax Authority. Every VAT registered business in the UAE is required to submit its VAT return through the official FTA portal within the prescribed time.

A VAT return includes details of output VAT collected on sales and input VAT paid on purchases during a specific tax period. Accurate VAT returns filing in the UAE helps businesses stay compliant with tax laws, avoid penalties, and maintain proper tax records as required by the authorities.

 Who Needs to File VAT Returns in the UAE?

• All businesses registered under the UAE VAT law are required to file VAT returns for each assigned tax period.

• Companies that have made taxable supplies or purchases during the period must submit their VAT returns.

• VAT registered businesses must file returns even if there are no sales or purchases in a particular period.

• Mainland, free zone, and designated zone businesses registered for VAT are equally required to file returns.

• Businesses with VAT registration obtained voluntarily must also comply with VAT return filing requirements.

 VAT Return Filing Frequency and Due Dates in UAE

• VAT returns in the UAE are generally required to be filed on a quarterly basis, unless the Federal Tax Authority assigns a monthly filing period.

• The VAT filing frequency is decided by the FTA at the time of VAT registration and mentioned in the taxpayer’s FTA portal.

• The due date for filing VAT returns is the 28th day following the end of the tax period assigned to the business.

• If the due date falls on a public holiday or weekend, the deadline may be extended to the next working day as notified by the FTA.

• VAT payment, if any, must also be completed by the same due date to avoid late payment penalties.

Information Required for VAT Returns Filing in the UAE 

To complete VAT returns filing in the UAE, businesses must compile accurate financial and tax related information for the applicable tax period. This information is used to calculate VAT payable or refundable and ensure compliance with Federal Tax Authority requirements.

• Details of taxable sales and output VAT collected

• Details of taxable purchases and input VAT paid

• VAT registration number and tax period details

• Adjustments for credit notes or debit notes, if applicable

• Import and export transaction details, if applicable

• VAT paid on expenses is eligible for input tax recovery

 Penalties for Late or Incorrect VAT Returns Filing in the UAE

The Federal Tax Authority imposes strict penalties when VAT returns are filed late, contain errors, or when VAT due is not paid on time. These penalties are governed by UAE tax regulations and are applied to ensure timely and accurate VAT compliance by all registered businesses.

• Late VAT Return Filing: If a VAT return is not submitted by the due date, the FTA imposes a fixed administrative penalty of AED 1,000 for the first delay and AED 2,000 if the delay is repeated within 24 months.

• Late VAT Payment: When VAT due is not paid on time, a penalty of 2 percent of the unpaid tax is applied immediately after the deadline, followed by 4 percent after seven days, and then 1 percent per day on the unpaid amount, subject to the maximum limit prescribed by the FTA.

• Incorrect VAT Return Filing: Submitting an incorrect VAT return can attract a fixed penalty of AED 1,000 for the first error and AED 2,000 for repeated errors, along with additional percentage based penalties depending on the severity and intent of the error.

• Failure to Maintain Records: Businesses that fail to maintain proper VAT records or supporting documents as required by law may face additional administrative penalties imposed by the FTA.

Timely and accurate VAT returns filing in the UAE helps businesses avoid these penalties, maintain compliance, and reduce the risk of audits or further regulatory action.

 Why Choose Ebizfiling for VAT Returns Filing in UAE?

Ebizfiling provides reliable support for VAT returns filing in UAE by handling VAT calculation, return preparation, and timely submission through the FTA portal in line with UAE tax regulations. We also assist with Company formation in the UAE, Company Registration in India, Company Annual filing and many more to support businesses. For professional assistance with VAT returns filing in UAE, you can contact Ebizfiling at  09643203209 or email info@ebizfiling.com.to get expert support.