Since the introduction of Value Added Tax (VAT) in the United Arab Emirates in 2018, every registered business must comply with VAT laws and regulations. One of the most important aspects of VAT compliance is VAT return filing uae This process ensures transparency between businesses and the Federal Tax Authority (FTA) and helps maintain smooth financial operations.
In this blog, we’ll walk you through everything you need to know about VAT return filing in the UAE, including deadlines, requirements, and common mistakes to avoid.
What is VAT Return Filing?
A VAT return is a formal report submitted to the Federal Tax Authority (FTA) that summarizes a business’s taxable transactions for a specific tax period. It includes information on:
-
Total sales and purchases made during the tax period.
-
Output VAT (VAT collected on sales).
-
Input VAT (VAT paid on purchases).
-
The net VAT payable or refund amount due.
Essentially, it’s a record of how much VAT a business owes to the government or can reclaim.
Who Needs to File VAT Returns in the UAE?
All businesses that are registered for VAT under the FTA are required to file VAT returns regularly. This includes:
-
Companies whose annual taxable supplies exceed AED 375,000 (mandatory registration).
-
Businesses that voluntarily registered for VAT even if their taxable turnover is above AED 187,500.
If your business is VAT-registered, you must file returns—even if there were no sales or purchases during the tax period.
When Should You File VAT Returns?
Typically, VAT returns in the UAE are filed quarterly (every 3 months). However, some larger businesses may be required to file monthly returns based on FTA’s assessment.
Filing deadline:
-
The VAT return must be submitted within 28 days from the end of each tax period.
-
Late filing may result in hefty penalties from the FTA.
👉 Example:
If your tax period ends on 31st March, your VAT return must be filed by 28th April.
How to File VAT Returns in the UAE
The process of filing VAT returns is simple and can be done online through the FTA e-Services Portal.
Step-by-Step Guide:
-
Login to the FTA e-Services Portal.
-
Go to the ‘VAT’ tab and click on ‘VAT201 – VAT Return Form’.
-
Fill in details such as:
-
Taxable supplies (standard-rated, zero-rated, exempt)
-
Imports subject to VAT
-
Input VAT recoverable
-
-
Review all the figures carefully.
-
Submit the return online.
-
Pay the net VAT due through the e-Dirham card, bank transfer, or online payment options.
Penalties for Late VAT Return Filing
Failure to file VAT returns or pay due tax on time can result in severe fines:
-
AED 1,000 for the first offense.
-
AED 2,000 for repeated delays within 24 months.
-
Additional penalties apply for incorrect filings or underpayment of tax.
To avoid penalties, always ensure your VAT return is filed accurately and on time.
Common Mistakes to Avoid
-
Incorrect VAT calculations.
-
Failing to claim eligible input VAT.
-
Missing filing deadlines.
-
Not maintaining proper records and invoices.
-
Submitting returns without review.
Proper record-keeping and professional accounting can help prevent these errors.
Benefits of Timely VAT Return Filing
-
Maintains compliance with UAE tax laws.
-
Builds credibility with the FTA.
-
Avoids fines and penalties.
-
Ensures smooth business operations.
-
Helps track business performance and cash flow.
Conclusion
VAT return filing in the UAE is not just a legal requirement—it’s an essential part of responsible business management. Ensuring your VAT returns are filed accurately and on time helps you avoid penalties and maintain good standing with the FTA.
If you find VAT compliance complex, it’s always a good idea to seek help from professional tax consultants who can manage your VAT registration, filing, and reporting efficiently.
