Things to Know While Filing VAT Returns

1. Things to Know While Filing VAT Returns Presented by Parsh Accounting & Bookkeeping

2. DISCUSSION POINTS AN INTRODUCTION What is VAT return in Dubai ? Purpose of filing vat return What is a TAX Period? VAT Return Filing maturity date Where to file the VAT return? Components of a VAT Return kind Additional things to stay in mind whereas filing the VAT Return Penalty for non-filing of Return VAT rules for correcting the error in VAT Return filing in UAE Parsh Accounting & Bookkeeping

3. WHAT IS VAT RETURN IN DUBAI ? VAT Return/Tax Return is also an associate degree natural philosophy statement that summarizes the value of the provides and purchases created by a nonexempt person throughout the tax amount. It shows the non exempt person’s VAT liability i.e. distinction between the output tax collectible and so the input tax recoverable. VAT Return to need to be filed to the FTA (Federal Tax Authority) by the non exempt individual or the AN INTRODUCTION individual having the authority to submit VAT Return filing in UAE on behalf of the non exempt individual (i.e., Tax Agent). Parsh Accounting & Bookkeeping

4. PURPOSE OF FILING VAT RETURN The major functions of filing a VAT Return are: · Communication of tax info to FTA. · Finalization of the tax liabilities, schedule tax payments/request refund for overpayment of taxes of the remunerator inside the stipulated amount. · Reduces the danger of nonpayment. Parsh Accounting & Bookkeeping

5. WHAT IS A TAX PERIOD? Tax amount could be a specific amount that the nonexempt person shall calculate and pay tax. The standard UAE VAT Return filing amount is every quarter. However, the Authority could assign an individual or category of Persons a shorter or longer Tax amount wherever it considers that a nonstandard Tax amount length is critical or helpful to scale back the danger of evasion and to enhance the observance of compliance adherence by these businesses At the time of allotment of TRN, the Authority has such that a tax amount for every remunerator. Parsh Accounting & Bookkeeping

6. VAT Return Filing maturity date The maturity date to file any UAE VAT Return, be it monthly or quarterly, is that the twenty-eighth day of the month following the top of the tax amount. If the maturity date falls on a public vacation, a nonexempt person ought to file the Return on next business day thenceforth. If there aren't any business transactions for the tax amount, the nonexempt person ought to submit a “nil” VAT Return by the several maturity dates. Parsh Accounting & Bookkeeping

7. WHERE TO FILE THE VAT RETURN? VAT Return should be filed electronically through the FTA portal: eservices.tax.gov.ae. A nonexempt person will log in to the FTA portal victimization their registered username and parole and access the VAT Return from the “VAT” tab on the navigation bar Parsh Accounting & Bookkeeping

8. Components of a VAT Return kind The VAT Return kind in UAE is to be filed on an outline level i.e., the companies ought to submit the consolidated details like total sales, total purchases, output VAT, input VAT, and tax collectible. The VAT Return kind is usually classified into seven sectors: VAT Return amount Taxable Person Details Net VAT Due VAT on sales and every one different output VAT on expenses and every one different input Declaration and approved soul Additional news necessities There is additionally an extra news section, that applies solely to sure businesses underneth specific conditions. This section contains fields associated with the margin of profit theme, stock transfers, and VAT paid in different implementing states Parsh Accounting & Bookkeeping

9. ADDITIONAL THINGS TO STAY IN MIND WHEREAS FILING THE VAT RETURN Insert all amounts in United Arab Emirates Dirhams (AED) Insert all amounts to the closest fils (the kind permits for 2 decimal places) Complete all necessary fields. Use “0” wherever there aren't any amounts to declare. Parsh Accounting & Bookkeeping

10. Penalty for non-filing of Return Failure to file the VAT Return inside the desired time frame can create the registered person accountable for fines as per the provisions of cupboard Resolution No. forty of 2017 on body Penalties for Violations of Tax Laws within the UAE. The failure of the person to submit the return inside the timeframe per the jurisprudence attracts a fine of AED one,000 for the primary time and the penalty will increase to AED 2000 just in case of repetition inside (24) months. Parsh Accounting & Bookkeeping

11. VAT rules for correcting the error in VAT Return filing in UAE UAE VAT law permits the correction of errors created within the previously Return amount. The nonexempt person should disclose the error to the FTA within thirty days of changing into conscious of the error and embody within the return submitted right away when noticing and correcting the error. Errors in the calculation of collectible tax of higher than AED 100000 ought to be reported underneath the Voluntary speech act theme. However, the nonexempt person will correct tax calculation errors of less than AED 100000 within the consequent return. Parsh Accounting & Bookkeeping

12. CONTACT INFORMATION TALK TO US! MAILING ADDRESS Office No. 2101-05, Floor 21, Binary Tower, Marasi Drive, Business Bay, Dubai, UAE PHONE NUMBER 971 568511542 EMAIL ADDRESS info@parsh.ae Parsh Accounting & Bookkeeping