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The official document to be completed by the Taxable Person and submitted to the Federal Tax Authority (“FTA”) at regular intervals detailing any output tax due and input tax recoverable and including any other information that is required to be provided. In our VAT services in UAE, we will refer to it as the “VAT return”. All VAT Returns should be submitted online using the FTA portal. The return can be submitted by the Taxable Person, or another person who has the right to do so on the Taxable Person’s behalf (for example, a Tax Agent or a Legal Representative).
The VAT Filing Process
We pride ourselves on delivering a seamless and efficient VAT filing process tailored to the unique needs of businesses operating in the United Arab Emirates (UAE). Our systematic approach ensures accuracy, compliance, and a stress-free experience for our clients.
Commence the VAT filing process with a personalized consultation. During this phase, our experts collaborate with you to understand the specific nature of your business, its financial structure, and any unique requirements. This initial discussion sets the foundation for a customized VAT filing strategy.
Our team conducts a comprehensive review of your financial records. This involves scrutinizing all transactions to identify those subject to VAT. We prioritize accurate record-keeping to ensure that every relevant financial detail is considered during the filing process.
With a clear understanding of your financial landscape, we proceed to prepare your VAT returns. Our experts navigate through the intricacies of VAT regulations, taking into account exemptions, input tax credits, and other pertinent factors. This meticulous approach aims to optimize your tax position and ensure compliance with all relevant regulations.
Once the VAT returns are meticulously prepared, we take care of the submission process. Leveraging electronic filing systems, we submit your returns to the appropriate tax authorities. Our commitment to timeliness ensures that your submissions are in accordance with regulatory deadlines, minimizing the risk of penalties and fines.
Our services extend beyond the filing process. We provide ongoing advisory support to keep you informed about any changes in VAT regulations. Our experts are ready to assist you in strategizing for optimal tax efficiency, ensuring that your business remains agile in response to evolving tax landscapes.
Understanding Tax Liability
Output tax
“Output tax” is the VAT a Taxable Person calculates and charges on its supplies of goods and services once it is registered for VAT. Output tax must generally be calculated on supplies made to other persons; however, in certain situations VAT might be required to be charged on supplies which were deemed to occur for VAT purposes or on supplies which are subject to the reverse charge provisions. The obligation to account for output tax arises at the tax point of the supply, i.e. at the date of supply. Once the date of the supply has taken place, the Taxable Person must account for the output tax in the VAT Return covering that Tax Period.
Input tax
From the recipient’s point of view, “input tax” is the VAT added to the price by the supplier when the recipient purchases goods or services which are subject to VAT. If the recipient is registered for VAT then they may be able to recover this input tax from the FTA, subject to the conditions below: E the Taxable Person has received and retained a tax invoice or other documentation evidencing the amount of VAT on the supply or import, and i the amount of VAT has been paid, or is intended to be paid, in whole or in part (in which case the amount of input tax recoverable shall be limited to the equivalent amount). Once the ability to recover input tax has been confirmed, the person is able to include the amount in the relevant VAT Return as an input tax deduction.
Calculating Tax Liability
A registered person’s tax liability is simply the difference between the output tax payable for a given Tax Period and the input tax which is recoverable for the same Tax Period. Where the output tax exceeds the input tax amount, a payment of the difference must be made to the FTA. Where the amount of input tax exceeds the amount of output tax, a Taxable Person is entitled to a refund of VAT from the FTA.
