FTA provides a complete procedure on how to file a VAT returns.
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With the introduction of VAT in UAE from 2018, there has been a huge shift in the business dynamics in the country. As it's widely known, there are various benefits of VAT implementation. The FTA provides a complete procedure on how to file for the VAT return. Businesses are required to file their VAT returns through the FTA portal online by manually entering the mandatory information in the VAT return form. We highlight some of the fields in the form and the kind of information that goes in there.
Taxable person details
The taxable person’s details, including TRN, name, and address will be automatically populated and will not require you to enter it. In the case of Tax Agent, their details like TAAN and TAN along with their name will be entered accordingly as well.
VAT return period
The ‘VAT Return Period’ for which you are currently filing, the Tax Year-end and VAT period reference number will be automatically entered. The Tax Year-end is important for businesses that are not able to recover all of their VAT and need to perform an input tax apportionment annual adjustment. The VAT return period reference number tells you which tax period you are completing within that tax year.
VAT on sales and other outputs
Here you will have to enter the amount relating to sales and other inputs, VAT amount, and adjustment. The details of standard-rated supplies, supplies subject to the reverse charge provisions, zero-rated supplies, exempt supplies, etc. should be entered in their respective boxes. The total of all the above details is automatically calculated and you see the total output tax due to the FTA and total adjustments applicable to that value, for the tax period.
VAT on expenses and all other inputs
Here, you will have to enter all amounts related to all expenses, recoverable VAT amount, and adjustment. You will also have to enter all expenses subject to the standard rate of VAT for which you would like to recover Input Tax. The total of all the values is calculated, representing the total value of VAT you are entitled to recover, as well as any adjustments made to those values.
Net VAT Due
This part will indicate your payable tax for the Tax Period. The total value of the Output Tax that is due for the Tax Period will be calculated based on the information provided by you. The total value of Input Tax that is recoverable for the Tax Period will be calculated based on the given information. This will be the sum of the VAT and Adjustments columns in the Inputs section. The total value of the recoverable tax for the period shows the total value of the input tax that is recoverable for the tax period. Payable tax for the period is the difference between total due tax for the period and the recoverable tax for the period.
Additional reporting requirement
This section is for those who have used and applied the provisions of the Profit Margin Scheme during this period and so it requires the provision of additional reporting only for specific taxable persons to whom it applies.
Declaration and authorized signatory
All of the Authorised Signatory information will be prepopulated based on the information that has already been provided upon the completion of your Taxable Person records. Once you have finished filling this form, you have to tick the box next to the declaration section. It is important to verify all the details before submitting the VAT Return form. Click the submit button once you are completely sure. After the successful filing of the VAT Return, a taxpayer will receive an e-mail from FTA confirming the submission of the VAT return form.
The above information is directly sourced from VAT Returns User Guide by FTA.