Asad Abbas & Co
PURPOSE OF VAT RETURNS
& REGISTRATION IN UAE
Introduction
VAT Return/Tax Return evaluates the value of the supplies and
purchases created by a taxable person during the tax period
because it is a periodical statement. It demonstrates the
taxable person’s VAT liability i.e., a difference of opinion
between the output tax payable and the input tax
recoverable.
PURPOSE OF VAT RETURN FILING IN UAE
Communication of its information to FTA.
Finalization of the tax liabilities, for overpayment of taxes of the
taxpayer within the specified period schedule tax
payments/request refund.
Decreases the risk of tax avoidance.
WHAT IS A TAX PERIOD?
The tax period is a specific period for which the taxable person shall
evaluate and pay tax.
The standard UAE VAT returns filing period is on a periodical basis.
However, to decrease the risk of Tax Evasion the Authority may allocate
a Person or class of Persons a shorter or longer Tax Period where it
believes that a nonstandard Tax Period length is needed or beneficial
and to enhance the 7+monitoring of fulfillment adherence by these
businesses.
At the time of allocation of TRN for each Taxpayer, the Authority has
specified the tax period.
VAT RETURN FILING DUE DATE
The 28th day of the month after the end of the tax period is
the due date to file any UAE VAT return, be it monthly or
quarterly.
A taxable person should file the return on another business
day thereafter if the due date falls on a public holiday.
The taxable person should offer a “nil” VAT Return by the
corresponding due date if there are no business transactions
for the tax period.
WHERE TO FILE THE VAT RETURN
The return must be submitted electronically on the FTA
portal: eservices.tax.gov.ae.
Utilizing a taxable person’s registered username and
password and retrieve the return from the “VAT” tab on the
navigation, bar they can log in to the FTA entrance.
Conclusion:
Vat Registration in UAE is important in person’s life as it explains
the vat liability of a taxpayer. Filing a return can save a person
from overpayment of tax for a particular period. It should be
submitted through the government approved portal only for
security purpose.
Sources Link:https://auditandaccountingconsultancy.wordpress.com/2021/0
9/28/purpose-of-vat-returns-registration-in-uae/
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ENGAGE WITH US
Email: info@abbasaccounting.com
Phone: +971 56 2192484