Services
VAT Return Filing Services in Dubai, UAE
At the end of each tax period, VAT-registered businesses, referred to as ‘taxable persons’ are required to submit a VAT return to the Federal Tax Authority (FTA). This return provides a summary of the total value of taxable supplies and purchases made during the period and indicates the resulting VAT liability.
Companies registered under the VAT Law must retain their accounting records for a minimum of five years. Keeping accurate VAT records is essential to ensure timely and accurate VAT filing and to prevent overpayment of taxes.
Currently, the FTA portal supports only online submission of VAT returns. There are no offline options available, such as XML, Excel, or any other utility. Therefore, taxpayers must manually enter details such as sales, purchases, output VAT, and input VAT into the relevant sections of the VAT return form on the FTA portal.
The VAT return form, known as ‘VAT 201’, must be completed and submitted by the taxpayer to file the VAT return.
What is VAT Return Filing and VAT Compliance?
VAT return filing is the process of reporting how much VAT a business owes to the tax authorities or how much should be refunded. It is usually done on a quarterly basis and helps businesses monitor their VAT obligations.
VAT also applies to businesses engaged in international trade. To avoid penalties and ensure smooth operations, it is important for businesses to remain VAT compliant by accurately reporting and paying VAT as required by law.
The Form VAT201 contains the following content in relation to Output and Input tax
Output Tax
This is the VAT you charge on sales of goods and services. Businesses registered for VAT must collect output tax from customers and report it to the tax authority.
Input Tax
This is the VAT you pay on purchases and expenses related to your business. You can usually reclaim input tax to reduce your VAT liability.
How Businesses File VAT Returns in the UAE
Companies in the UAE file their VAT returns through the Federal Tax Authority (FTA) e-Services portal by completing the VAT-201 form.
Steps include:
- Logging into the FTA portal with registered credentials
- Selecting the VAT return period
- Entering details of the taxable person
- Recording sales and output VAT
- Recording expenses and input VAT
- Calculating the net VAT due
- Attaching supporting reports as required
- Adding authorized signatory details and final declaration
Once submitted, the FTA confirms the VAT return filing through email. Businesses must then pay the due tax using one of the accepted channels such as E-dirham, exchange houses, online transfer, or over-the-counter payment.
VAT Penalties and Fines in the UAE
Failure to comply with UAE VAT regulations can lead to substantial penalties, including:
- AED 20,000 for failure to register within the required timeline
- AED 10,000 for not applying for VAT deregistration when required
- AED 15,000 if goods are sold without including VAT in the displayed price
- AED 2,000 for late submission of VAT returns beyond the 28-day deadline
- AED 3,000 (first time) and AED 5,000 (repeat) for submitting a voluntary disclosure form incorrectly or late
Maintaining accurate records, invoices, and documentation is crucial to avoid these fines.
Common VAT Filing Mistakes Businesses Make
Many companies in Dubai struggle with VAT compliance due to:
- Poor record keeping
- Errors in VAT calculation and payment
- Weak or outdated accounting systems
- Failure to issue valid tax invoices
- Limited understanding of UAE VAT laws
- Hiring unqualified resources for tax management
How KLOUDAC Supports You with VAT Return Filing in Dubai
At KLOUDAC, we provide expert VAT services designed to keep your business fully compliant while minimizing tax risks.
Our VAT return filing services include:
- Compiling all necessary documents and preparing returns for each tax period
- Reviewing your VAT records to ensure accuracy and compliance with FTA standards
- Identifying opportunities to legally reduce your VAT liability
- Acting as your representative with the FTA
- Ensuring VAT returns are filed on time, every time
With a team of experienced VAT specialists in Dubai, KLOUDAC helps businesses stay compliant, avoid penalties, and focus on growth.
Once submitted, the FTA confirms the VAT return filing through email. Businesses must then pay the due tax using one of the accepted channels such as E-dirham, exchange houses, online transfer, or over-the-counter payment.
Frequently Asked Questions
Quick answers to common questions about VAT filing.
Taxable persons in the UAE can file their VAT returns through the Federal Tax Authority (FTA) online portal. To begin, the user must log in to the FTA e-Services portal using their registered username or email address and password, then access Form VAT 201.
Our team of tax professionals is available to assist you in accurately completing the form and submitting the VAT return within the deadline set by the FTA.
In the UAE, a VAT return outlines the amount of tax payable or refundable for a specific tax period.
The taxable entity must report:
- Output VAT (tax collected on sales)
- Input VAT (tax paid on purchases)
If the output VAT is greater than the input VAT, the difference must be paid to the Federal Tax Authority. Conversely, if the input VAT exceeds the output VAT, the entity is eligible for a refund of the excess amount.
Get in Touch!
Have questions or need support?
Reach out to the KLOUDAC team, we’re here to help you every step of the way.
