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VAT Returns

Why is it important to keep good VAT records for VAT Returns?

As per the new regulations, every business must keep their VAT records for at least five years and as long as required by the law. FTA may request you to provide records anytime if there is any issue regarding your tax. FTA may ask for an additional document such as general ledgers, annual accounts details, invoices issued, invoices received, credit notes, debit notes, etc.

Did you know that as per the new regulations, if the person fails to keep required records and other information specified in the laws will be fined AED 10,000 in the first instance and AED 50,000 in case of repetition? The best and safest way to do a VAT Returns is with a help of a Tax Agent. Averyx Group is one of the first few Tax Agency in the country with the Registered Tax Agent Number.

Did you also know that if the person fails to submit data, records and documents related to tax in Arabic to authority when requested, he would be penalized AED 20,000. Averyx Group has Registered Tax Agent that can speak Arabic.

What is the VAT Return:

The official document to be completed by the Taxable Person and submitted to the Federal Tax Authority (“FTA”) at regular intervals detailing any output tax due and input tax recoverable and including any other information that is required to be provided. In this guide, we will refer to it as the “VAT return”.

All VAT Returns should be submitted online using the FTA portal. The return can be submitted by the Taxable Person, or another person who has the right to do so on the Taxable Person’s behalf (for example, a Tax Agent or a Legal Representative).

Common requirements when completing the VAT Return

When completing each box of the VAT Return, you must:

  • Insert all amounts in United Arab Emirates Dirhams (AED)
  • Insert all amounts to the nearest fils (the form allows for two decimal places)
  • Complete all mandatory fields
  • Click validate
  • Use “0” where necessary and where there are no amounts to be declared

 

Final VAT Return

When your application to cancel your VAT registration is approved, you will be notified of the effective date of deregistration and your final VAT Return will also become available. In general:

  • You are required to file your final VAT Return for the last Tax Period for which you will be registered for VAT purposes;
  • The Tax Period and the submission due date of the final VAT Return will be communicated to you by the FTA;
  • The final VAT Return has to be completed for the respective Tax Period and submitted to the FTA according to the same provisions and procedures as any other VAT Return and as indicated by the FTA;
  • As part of your final VAT Return, you are required to calculate and account for output tax on any goods and services forming part of your business assets (including capital assets and inventories) that you have held on hand as at the last day of your VAT registration and for which you have recovered input tax. You are deemed to have supplied these goods and services although you have not actually sold them.

 

Download PDF – VALUE ADDED TAX (VAT) RETURNS USER GUIDE

Download PDF file for VAT Returns User Manual

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