A Comprehensive Guide to VAT Filing in the UAE for Small Businesses

Any small business in UAE whose annual turnover taxable supplies in the preceding 12 months, reaches the 375,000 AED limit has to register for Value Added Tax in UAE. All small businesses registered with VAT in UAE have to file their VAT returns according to the timeline allocated to them by the FTA (monthly or quarterly). This article will provide small businesses with a comprehensive guide on how and when to file VAT in UAE and the requirements to do so.

Meanwhile, small businesses are advised to seek expert guidance from Jitendra Tax Consultants about VAT registering and filing. Tax matters are easy to tackle when you have professionals at your back. Our qualified tax agents help you comply with tax regulations and stay ahead.

VAT Filing for Small Businesses

Small businesses who are registered for VAT in UAE file their tax returns either monthly or quarterly. Returns are filed regularly within due date which is, before the 28^th day of the month following before the end of a taxable period. Tax that is calculated during each tax period is filed before the deadline. In general, the FTA assigns two types of tax periods i.e.,

1. Quarterly: Businesses whose yearly turnover does not reach the 150 Million AED threshold file VAT returns quarterly.
2. Monthly: Businesses whose yearly turnover reaches or exceeds the 150 Million AED threshold file VAT returns monthly.

However, certain businesses can be assigned a different tax period by FTA either longer or shorter due to some reason. No matter what tax period a small business is assigned, it is highly significant to file tax returns before the deadline or else penalties can be imposed by the FTA.

VAT Return Filing Requirements for Small Businesses

In every return filing, a small business needs to show the following;

• How many standard rated supplies did you make in a single tax period and how much output tax you charged?
• How many zero rated supplies did you make in a single tax period?
• How many exempt supplies did you make in a single tax period?
• How many reverse charged supplies did you receive in a single tax period?
• Did you incur any expenses in a single tax period? What is the amount of input tax you want to recover?
• What is the total tax amount due and what is input tax recoverable in a single tax period?
• What is the payable tax or repayable tax for a single tax period?

However, the FTA can ask for additional information depending on the type of business and tax circumstances it is in.

Steps to File a VAT Return

In order to file a VAT return in UAE, a small business needs to go through the following steps;

1. You need to file your VAT return online through the official FTA website. For this, you first need to login with your ID to the eServices Portal of FTA.
2. You will need to select the ‘VAT’ tab where you will see the details of your VAT returns. Here you will also find the option for “New VAT Return”. Clicking on that will lead you to another interface.
3. You will see a form which will ask for the requirements as explained above i.e., sales, outputs, expenses, net amounts, payable VAT, etc.
4. After you fill out all the information, the system will itself evaluate your tax payable or refundable.
5. Review everything you provided carefully without missing any information or making errors. Declare and confirm that you provided correct information in your VAT return filing. Submit the form.
6. Open the “My Payments” tab. There you will see payable amounts if any. Pay the amounts within the deadline.

You can also take help from Jitendra Tax Consultants to avoid making errors and for correct VAT filing. Tax agents will take care of the deadlines and file the returns on your behalf.  

 Why Choose Tax Gian?

Taxgian possesses a team of experienced and qualified tax agents who are trained and well-educated about the complex tax framework of the UAE. Whether it is VAT filing or registering or any other VAT or other tax matter, our tax agents can handle it all. Not only that, our experts will allow you to operate smoothly and grow your business by managing all of your tax matters effectively and efficiently.