VAT Filing in Dubai
Value Added Tax (VAT) is required on the consumption of goods and services.
Tax Filing as known as VAT Filing is a mandatory procedure which should be followed by tax payable organizations in Dubai, UAE. It states how much VAT is to be paid for the FTA(Federal Tax Authority).
All taxable businesses in Dubai are required to file a VAT return. The company will receive a Tax Registration Number (TRN) after applying for VAT registration and completing the VAT registration procedure. Normally, the standard tax duration three months.
VAT Calculation Process
Dubai is one of the countries who charge the lowest VAT rates. Which is of 5%.
VAT = Output Tax – Input Tax
Where the output tax is the amount received by a seller as a percentage of the selling price of the product.
And the input tax is the amount charged by a customer as a percentage of the cost of products or services used to create a final product.
Example: Assume there is a company called X and the Company X purchased raw materials for an amount of AED 100,000.
Therefore,
Input tax = AED 250,000 x 5%
= AED 12,500
Company X sells the goods that were purchased. (Assuming total amount of sales = AED 500,000)
Therefore,
Output tax = AED 500,000 x 5%
= AED 25,000
Total Final payable VAT = Output Tax – Input Tax
= AED 25,000 – AED 12,500
= AED 12,500
Therefor the Company X has to pay only an amount of AED 12,500 as VAT for the UAE government.
VAT Filing Process in UAE
VAT filing process is completed by registering to the FTA portal and filling the VAT 201 form. VAT Filing services in Dubai are also conducted by VAT Consultants in UAE. This includes the whole process of VAT filing.
For the ease, the VAT filing process in done online. During vat filing process the registrant is required to submit the relevant document such as details of the taxable person, VAT return period, VAT on sales and expenses and many more. This does not include tax invoices. You can make VAT filing process easier with the help of approved VAT consultants in UAE. You will find more detail under the ‘VAT consultants in UAE’ section of this article.
VAT Filing Date in UAE
All the Tax payable organizations should complete their tax payments before the deadline mentioned in the VAT Certificate. The minimum time period to file VAT returns is three months. But there are instances where the organization is forced to file VAT returns on a monthly basis.
The deadline for filing VAT Returns will be the 28th of the subsequent month following the end of the tax period.
The deadline for quarterly (3 months) VAT returns is the 28th of the subsequent month following the end of the 3 months. Moreover, all VAT-registered organizations must file their VAT returns within the timeframe set by the Federal Tax Authority (FTA).
VAT Consultants in UAE
KLOUDAC is one of the recognized VAT consultants in Dubai.
The Kloudac experts ensure that all your VAT processes are fulfilled on time. They support you with VAT accounting services from registration to deregistration in a timely manner by ensuring the FTA requirements and avoiding any penalties. They do also provide VAT Trainings.
The experts in KLOUDAC will advice each client with all the required information related to VAT Filing and they provide you the best services obeying the Federal Tax Authority(FTA) regulations.
KLOUDAC provides you with all the VAT consultant Services in Dubai by making your work easier and to run your organization smoothly without facing any penalties.
KLOUDAC Accounting Firm Dubai, UAE
KLOUDAC is a recognized accounting firms in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero.
Accounting and Bookkeeping is more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software and more.