VAT Return filing in Dubai, UAE
A brief insight into Value Added tax
VAT return filing in Dubai is mandatory for all business operating in the country. Value Added Tax or simply VAT is actually consumption tax imposed on a product or commodity. Here value is added at different stages of the supply chain. The value is added from the manufacturing stage to the point of purchase. At present, 180 world nations employ the indirect tax named Value Added Tax. The end-customer has to pay the tax amount when it comes to Value added tax.
Value Added tax was launched in the Emirates in 2018. A 5% vat rate is followed in the UAE. VAT serves as a source of revenue generation for the UAE government. The government utilizes this revenue to improve various services that it offers to the UAE residents. One of the major aspects that differentiate the VAT from Income tax is that VAT is fully based on consumer consumption. The consumer has to pay VAT irrespective of his/her income. UAE laws make it mandatory for a taxable person or a business to file VAT returns as recommended by the Federal Tax Authority. One Step offer trouble-free, fully compliant VAT return filing services in Dubai and other Emirates. Feel free to contact One Step VAT and Accounting professionals for the best deals. Now!!
VAT registration in UAE is applicable for all business houses based on taxable supplies and imports prerequisites. And they are mentioned below.
- Business ventures that generate greater than AED 375,000 for taxable supplies and imports are supposed to register under VAT.
- VAT registration is optional for the businesses that generate greater than AED 187,500 for taxable supplies and imports.
The VAT amount is taxed from each customer who purchases a product or a service. The taxed VAT amount is then paid by the business to the government. All VAT registrants are obliged to file VAT return in Dubai and UAE, irrespective to the type of sales, purchases, VAT registration, output tax, input tax, etc. The VAT paid by the business to the supplier shall be reimbursed by the government.
The business house may accomplish the VAT registration procedures via the FTA (Federal Tax Authority) website. Create an account and login to the website. Access the eServices section. Please visit the official FTA website for more information.
The users may also make use of the Email ID of the FTA info@tax.gov.ae for clearing doubts or questions regarding VAT registration in UAE.
Business establishments registered under VAT impose tax on various products and services and they do it representing the government. A VAT percentage of 5% is levied on the products and services in the UAE. The same percentage of tax is levied at different stages of the supply chain. The VAT is also applicable to the tourists visiting the UAE. The tax is levied at the point of purchase.
Business establishments registered in the mainland and free zone jurisdictions come under VAT. If the taxable supplies and imports prerequisites apply to these business establishments, they should register for VAT. Yet, certain designated zones are exempted from the tax and is regarded as a “VAT free zone” based on the UAE cabinet decision. And hence the VAT is not applicable for the transfer of commodities between the VAT free zones.
A business registered under VAT is supposed to file the VAT returns after the completion of a tax period within a specified time. VAT return filing in UAE refers to the amount of VAT is to be paid or reimbursed by the tax authorities.
The VAT return offers an estimate of the total supplies and purchases conducted by a business in a particular tax period. The VAT return also represents the VAT liability of a business. The VAT is levied on the supplies and purchases for a specified tax period and the difference between the two is what we call VAT liability of the business.
The VAT return form is published on the official website of FTA. If your business satisfies the VAT return prerequisites, you are ready to fill the return form on the FTA website. Form VAT 201 is the VAT Return Filing form.
The tax to be paid is determined for a particular time-frame and this time-frame is called tax period. The tax period varies according to the yearly revenue of the business. The tax period is “quarterly” for yearly revenue less than AED 150 million. The tax period is “monthly” for yearly revenue of AED 150 million or even greater. The taxable person is supposed to file the VAT return within 28 days after the completion of the tax period as recommended by the FTA.
The FTA has the authority to allow an altered tax period based on the business category.As per FTA laws, businesses are supposed to pursue the VAT return filing in UAE on regular intervals and it must be done in the stipulated timeframe.
As per law, the taxable business is legally responsible for fines if it fails to provide the returns within the stipulated duration.
One Step VAT consultants in Dubai will assist your business in accomplishing the following tasks.
- Our experts will conduct visits to your location on regular intervals and prepare the most relevant VAT return filing data. We will assist you in filing the VAT returns on our behalf and in perfect compliance with the VAT laws followed in the UAE.
- Assistance for Minimum tax liability with complete compliance with the laws.
- Complete assistance and guidance on all VAT related formalities and procedures.
- We are punctual and prompt in all our business endeavours so as our VAT return filing services. You need not worry about the stipulated time-frames and tax periods.
If you are a business owner looking for VAT return filing services in Dubai and UAE, get in touch with One Step professionals to outstanding services in terms of VAT and other accounting procedures.
