VAT returns and payment is the medium to report the total amount of VAT payable or VAT receivable for the tax period to the Federal Tax Authority (FTA). The taxable person needs to submit their VAT return by the end of each tax period. There’s a certain procedure that businesses must follow while filing their VAT return. Let’s know everything about it in detail.
What is a VAT return?
VAT returns & payment comprises the total value of supplies and purchases made by a taxable person during the VAT period and related VAT. This highlights the taxable person’s VAT liability/ VAT refund defined as a difference between total output tax charged to a taxable person on supplies of goods and services and input tax recovered on the purchases made. If the output tax over the input tax, then the difference becomes the amount payable to the Federal Tax Authority (FTA). When this input tax amount exceeds the output tax, the excess amount is the amount refundable to the taxable person.
When should I submit my VAT return & make payments?
Following the end of the tax period, on the 28th day of the month, the FTA should receive the VAT return from the taxable person. In case there’s a weekend or a public holiday on that date, the taxpayer must file the return and pay VAT liability on or before the next working day. Also, if you decide to deregister for VAT, you need to provide your last VAT return for till the last return period, as specified by the FTA.
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How do I submit a VAT return?
It’s easy to file a tax return in UAE. Log in to the FTA EmaraTax portal using your authentic username and password. Then, the next step is to go through the navigation menu and start with the filing process. Either the taxable person, or a tax agent, or an authorized legal representative can file the return.
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VAT returns & payment: Inclusions
There are important details that are relevant when filing for your VAT returns & payment.
- Check and confirm the auto-populated details of the taxable person and tax period
- Value of supplies at the standard rate and VAT amount
- Value of exempt supplies and zero rates made in the tax period made during the tax period
- Value of any supplies subject to reverse charged basis VAT made during the tax period
- Expenses incurred with which the taxable person is entitled recovers the amount of input tax.
- Total tax amount that is due and is recovered during the tax period
- Value of the payable and repayable tax during the tax period
Contact Shuraa to know in detail about the procedure of VAT registration, UAE.
How do I make a VAT payment?
The Federal Tax Authorities (FTA) must receive the payments before the deadline date of the VAT returns i.e. 28th day (or following day – if it is public holiday/weekend) after the end of the tax period. There are various methods for payment like you can use e-services like e-Dirham payment method or a credit card, or a bank-to-bank transfer. If you are making payments via an e-dirham card, you will incur an extra charge of AED 3. However, if you use a credit card then there is a charge of 2-3% of the total payable amount.
Conclusion
The experts of Shuraa Tax will help you will all your return filings in a timely and efficient manner. Our range of services cover everything from VAT Registration, Return Filing, tax invoices, and more. Together, we will help to take your business to new zeniths. Call or text us at +971 508912062 or send an email to info@shuraatax.com.
