How to file tax returns in the UAE
Every taxable person in UAE is required to file a VAT tax return to the Federal Tax Authority.
According to Article 64 of the Executive Regulations of the VAT Decree-Law, the Federal Tax Authority (FTA) must receive the VAT return by the 28th day following the end of the Tax Period.
What Is VAT
Value Added Tax (VAT) is an indirect tax generally levied on all kinds of goods and services with the value added at every point either in the production or distribution cycle.
It starts from raw materials going all the way to the point of final retail purchase.
In simple words, VAT is a tax paid by a consumer upon the value of buying goods or services. The amount paid by them is completely based on the value of goods or services bought by the consumer.
Why Filling A VAT Return Is Important?
In the UAE, every taxable person needs to file a VAT return to the Federal Tax Authority (FTA) at the end of each tax period.
Filing your tax returns is necessary to provide a clear picture to the business entities about the amount of VAT that’s needed to be paid. As well as, it can let any business entity take a step in the initiation of a VAT refund or claim.
The rate of VAT is fixed based on the total number of items bought by the consumer.
Hence, the higher the price, the higher the VAT will have to be paid. In UAE, VAT is compulsory for businesses having a turnover of up to AED 375,000.
How To File Tax Returns In UAE
VAT or tax returns in the UAE is based on a very simple process that includes the submission of a form containing information regarding VAT expenses and sales that occurred during a specific time of the tax period either in business or in the entity.
Documents Required For The Registration Of VAT Return
The following documents must be provided while filing for the tax return online as per your requirements:
Individual Registration For UAE VAT:
· Resident’s permit of the applicant
· Requested Letter with the signatures of the applicant
· Applicant’s passport photocopy
Entity Registration For UAE VAT As An Authority:
· Letter of Application with the signatures of authorization
· Copy of the Act of Incorporation Document
· Decree copy
Dubai-Based Company Registration For UAE VAT:
· Trade License copy
· Letter of the application by the applicant signed by the authorities of the company
What Information To Include In A Tax Return?
As per the rules imposed by the UAE VAT law, it has been made compulsory by the Federal Tax Authority to include all the relevant and required details during the tax return.
Informational details needed to be added while filing for a tax return are as follows:
● Name, complete address, and tax registration number (TRN) of the registrant
● Date of Submission of UAE VAT returns
● Tax period affiliated with the VAT return filing
● The payable tax for the Tax Period
● Taxable supplies value made by the registrant during the tax period as well as the Output tax charged and Emirate wise.
● The value of the Taxable supplies is subjected to the zero rates made by the registrant during the Tax Period
● The value of any kind of supply subject to Clause 1 and 3 of Article 48 of the Decree-Law (Reverse Charge)
● The value of the exempt supplies made by the person within the period
● The value of expenses sustained in the respect to which the person seeks to recover his Input Tax as well as the amount of Recoverable Tax
● The total value of the Due Tax and the Recoverable Tax for the entire Tax Period
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