VAT Return Filing

Filing VAT returns accurately and on time is essential for businesses in the UAE to remain compliant with UAE Federal Tax Authority (FTA) regulations. Effective VAT return filing enables businesses to report VAT collected, claim input tax credits, and maintain proper financial records.

Who Needs to File VAT Returns:

1. Mandatory Filing: All VAT-registered businesses must file VAT returns periodically, as specified by the FTA. This includes businesses whose taxable supplies and imports meet or exceed the registration threshold.
2. Voluntary Filing: Even businesses with lower taxable supplies may benefit from voluntary registration, allowing them to file VAT returns and recover VAT on their purchases.
3. Exemptions: Certain entities, depending on their activities or supplies, might have different filing requirements or exemptions.

VAT Return Filing Process:

1. Preparation and Documentation: Gather all relevant documents, including sales and purchase invoices, financial records, and VAT receipts. Ensure all data is accurate and complete.
2. Calculation: Calculate VAT collected on sales (output VAT) and VAT paid on purchases (input VAT). Determine the net VAT payable or refundable.
3. Submission: Complete and submit your VAT return through the FTA’s online portal. Provide accurate financial details, VAT calculations, and necessary documentation.
4. Payment: If VAT is payable, ensure timely payment to avoid interest or penalties. Follow the payment instructions provided by the FTA.
5. Compliance: After filing, maintain proper records and documentation for future reference and potential audits. Ensure ongoing compliance with VAT regulations.

How IHAA Can Assist:

The IHAA team provides expert support for VAT return filing, ensuring accuracy and compliance:

• Preparation Assistance: We help gather and organize all necessary documents and financial records, streamlining the preparation process.
• Calculation and Filing: Our experts handle the calculation of VAT and the submission of your VAT return, ensuring accuracy and adherence to FTA requirements.
• Compliance Guidance: We offer ongoing guidance to help you maintain compliance with VAT regulations, including record-keeping and periodic filing.
• Consultation and Training: Our team provides training and consultation to ensure your accountant staff is knowledgeable about VAT regulations and efficient in managing VAT-related responsibilities.