Proficient VAT Services for Businesses in the UAE

Under UAE VAT law, businesses are required to ensure that the VAT they calculate, document, and report is in full compliance with the regulations. This responsibility can be overwhelming given the constantly changing landscape of tax rules, business operations, and technology.

What You Need to Know About VAT Filing in the UAE

The Federal Tax Authority (FTA) receives details about a business's sales and purchases through VAT return filings. The filing frequency is determined by the FTA when your business registers for VAT. Based on your registration, your VAT filing can be either monthly or quarterly, depending on your business's needs.

Tax Periods for VAT Filing in the UAE

Understanding the tax period for VAT filing is crucial for businesses in the UAE to ensure timely and accurate compliance. Here’s a breakdown of the typical VAT filing process:

1. Standard Filing Period
   Most businesses in the UAE file VAT returns on a quarterly basis, meaning every three months. This is the most common tax period for VAT filing.
2. Quarterly Filing Deadlines
   For businesses with a quarterly tax period, VAT returns are due on the following dates:
   • First Quarter: January 1 to March 31 (due by April 28)
   • Second Quarter: April 1 to June 30 (due by July 28)
   • Third Quarter: July 1 to September 30 (due by October 28)
   • Fourth Quarter: October 1 to December 31 (due by January 28 of the following year)
3. Other Filing Frequencies
   In some cases, businesses may be granted a different filing schedule, such as monthly or bi-monthly, depending on factors like turnover or previous compliance history.
4. Deadline Extensions
   The FTA allows businesses to request an extension for filing their VAT returns if necessary. These requests must be made through the FTA’s online portal and are reviewed on a case-by-case basis.
5. Penalties for Late Submissions
   Late VAT returns can result in fines, with the amount depending on how overdue the return is and how much VAT is owed. Ensuring your filings are on time is critical to avoid unnecessary penalties.

How to Ensure Accurate VAT Filing in the UAE

To stay compliant with UAE VAT law, businesses must follow a well-structured process for filing VAT returns. Here's a step-by-step checklist to ensure accurate and timely filing:

• Gather Invoices and Receipts: Collect all sales and purchase invoices, credit notes, and receipts issued or received during the tax period.
• Verify Input Tax: Confirm that the input tax paid on business purchases is correctly calculated and can be claimed.
• Check Output Tax: Review the output tax charged on sales to ensure it's calculated and collected properly.
• Account for Reverse Charge Tax: If applicable, include VAT on expenses subject to the reverse charge mechanism.
• Identify Exempt or Zero-Rated Supplies: Correctly account for any exempt or zero-rated supplies made during the period.
• Apply Correct VAT Rates: Ensure that the right VAT rates are applied to different goods and services.
• Reconcile VAT Figures: Cross-check VAT figures with your accounting records to identify and resolve any discrepancies.
• Complete the VAT Return Form: Accurately fill out the VAT return, ensuring all required fields are completed.
• Submit on Time: File your VAT return by the due date to avoid penalties.
• Make Payments: Ensure timely payment of any VAT due to the FTA.
• Maintain Records: Keep all records supporting your VAT return for the required period as per FTA guidelines.
• Request an Extension (If Needed): If you need more time, request an extension through the FTA’s portal before the deadline.
• Prepare for VAT Audit: If necessary, prepare a VAT audit file (reconciliation statement) if your business meets the FTA's criteria.

By following this checklist, you can streamline your VAT filing process, reduce the risk of errors, and stay compliant with UAE tax regulations.

Need Help With VAT Filing in Dubai and the UAE?

At Proficient Accountants, we help businesses in the UAE navigate the complexities of VAT compliance. Whether you're filing VAT returns in Dubai, Abu Dhabi, or anywhere in the UAE, our team ensures your filings are accurate and on time. We work with you to identify potential compliance issues, mitigate risks, and avoid penalties.

If you’re looking for expert VAT return filing services in the UAE, don’t hesitate to reach out to us today!