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With the coming of Value Added Tax (VAT) in the UAE in 2018, businesses are now obliged to follow VAT regulations, including the accurate and timely submission of VAT returns. Filing a VAT return is very important for tax compliance as it requires businesses to declare their taxable supplies, input VAT, and VAT payable to the Federal Tax Authority (FTA). Vigor Accounting & Taxation offers a complete VAT return filing service to assist businesses in meeting their legal obligations, avoiding penalties, and optimizing their VAT management processes.
With the coming of Value Added Tax (VAT) in the UAE in 2018, businesses are now obliged to follow VAT regulations, including the accurate and timely submission of VAT returns. Filing a VAT return is very important for tax compliance as it requires businesses to declare their taxable supplies, input VAT, and VAT payable to the Federal Tax Authority (FTA). Vigor Accounting & Taxation offers a complete VAT return filing service to assist businesses in meeting their legal obligations, avoiding penalties, and optimizing their VAT management processes.
Value Added Tax (VAT) is an indirect tax borne by the consumption of goods and services at all stages of production and delivery. In the UAE, the standard VAT is levied at a rate of 5%, applying to most of the goods and services, with a few items being either exempt or zero-rated. Businesses that are registered for VAT are obligated to collect VAT from the customers on the taxable supplies and are also allowed to recover the VAT paid on their business-related expenses.
VAT returns are usually filed quarterly or monthly based on the size and the nature of the business. The filing of VAT returns is the fundamental process for businesses to declare their VAT liabilities and recover any input VAT that can be claimed.
Registered VAT businesses with the Federal Tax Authority (FTA) should file VAT returns as required. Companies that reach the annual turnover threshold of AED 375,000 for compulsory VAT registration are also included in this. Apart from the above, the companies registered for VAT, which did so on a voluntary basis to of going above the voluntary threshold of AED 187,500 also file returns must do so. Companies that are registered for VAT have to, by law, submit their VAT returns even if they are not taxable for the tax period. Not meeting the deadline of the filing of the returns and the result, the fine and penalties may be charged by the FTA.
The FTA imposes penalties for late or incorrect submission of VAT TAX returns. Penalties can include
AED 1,000 for the first instance of late filing.
AED 2,000 for subsequent instances of late filing within a 24-month period.
Additional penalties may apply if there are inaccuracies or if the VAT payment is delayed.
Working with professionals like Vigor Accounting & Taxation can help businesses avoid these penalties by ensuring that VAT returns are filed accurately and on time.
When filing VAT returns in the UAE, businesses are required to report specific financial data to the FTA. The key components of a VAT return include
At Vigor Accounting & Taxation, we simplify the VAT return filing process, ensuring full compliance with FTA regulations. Here’s a step-by-step overview of the VAT return filing process
Filing VAT returns can be challenging for businesses, particularly those without a dedicated accounting team or sufficient knowledge of VAT regulations. Some common challenges include
At Vigor Accounting & Taxation, we provide a comprehensive suite of VAT return filing services tailored to the specific needs of businesses in the UAE. Our expert team ensures that your VAT returns are accurate, compliant, and submitted on time, helping you avoid penalties and streamline your VAT management processes.
Don’t wait—schedule your free consultation today and take the first step towards transforming your vision into reality!