United Arab Emirates (UAE) is the ultimate destination for start-ups and business entrepreneurs as it is known to be a tax haven for many companies. There are numerous benefits of starting your business due to its economic stability, zero-currency restrictions, and investor-friendly policies.
So, it is important to understand the process of VAT returns and how it works in the country. In simple terms, it is the total amount of VAT to be paid or received during the tax period from the Federal Tax Authority (FTA). You need a professional team to submit your VAT returns at the end of each period, here is everything you need to know:
VAT return meaning:
VAT return consists of the total value of purchases and supplies made by a taxable person or entity during the VAT period including the person’s VAT liability/ VAT refund. The VAT rate in the UAE on most goods and supplies is 5% so all the VAT registered businesses will collect the VAT amount on behalf of the government from their customers. Please note, that not all goods and services are subject to this standard VAT rate and most business activities do charge VAT at 0% and supply zero-rated goods and services.
How to submit your VAT returns?
This process is very easy. All you have to do is log in to the FTA online portal and create a registered username and password. Next, go through the navigation menu and begin the filing process. You can appoint the services of a professional authorized legal representative or tax agent to file your VAT returns. Remember to always file the returns at the end of the tax period around the twenty-eight of the required months.
In case there is a public holiday or weekend, then the returns can be submitted to the FTA on the following day. If your business ever decides to deregister for VAT, there is a necessity to submit your last VAT return as specified by the FTA. If you have any further queries on this subject matter, you can always contact our agency for anything related to VAT consulting services.
VAT Return Payment:
The VAT return payments should be submitted to the FTA before the deadline date for the VAT returns. There are various methods for payment that you can use such as a bank to a bank transfer, credit card payment, or e-services like the e-dirham payment method. Please note: when you pay using the e-dirham card, an extra charge of AED 3 is deducted and similarly if you use a credit card, you will be charged an additional 2-3% of the total payable amount.
How can we help?
Our bookkeeping and accounting services have a professional and qualified team of VAT consultants who can help you make the VAT return filing process very effortless and seamless. We follow all the guidelines of the FTA thoroughly and assist you with dealing with the necessary online portal operations and required payments. We are the top tax agents in the UAE and guarantee quality customer care and service always.