Since the introduction of VAT in the UAE in 2018, it has become mandatory for registered businesses to file regular VAT returns with the Federal Tax Authority (FTA). Filing VAT returns on time is essential for ensuring compliance and avoiding penalties. This blog provides a detailed step-by-step guide on how to file your VAT returns in the UAE, including practical tips and insights for businesses of all sizes.
What is a VAT Return?
A VAT return is a summary report submitted by a VAT-registered business to the FTA that includes total sales and purchases, output VAT collected on sales, and input VAT paid on purchases. The return determines whether the business must pay VAT to the government or is eligible for a refund.
Who Must File VAT Returns?
Any business or individual registered for VAT in the UAE, with a valid TRN (Tax Registration Number), must file VAT returns, usually on a quarterly basis. Some larger businesses may be required to file monthly.
Deadlines for VAT Return Filing
VAT returns must be submitted within 28 days from the end of the tax period. If this date falls on a weekend or public holiday, the deadline is the next working day.
Example:
If your tax period ends on March 31st, the VAT return must be filed by April 28th.
Step-by-Step Guide to Filing VAT Returns
1. Prepare Financial Records
Before filing, make sure you have complete and accurate records of all sales, purchases, expenses, and VAT-related transactions. This includes valid tax invoices, debit/credit notes, and import/export records.
2. Log in to the FTA e-Services Portal
Visit https://eservices.tax.gov.ae/ and log in using your FTA credentials. If you do not yet have an account, you must register first.
3. Access the VAT Returns Section
Once logged in, navigate to the “VAT” tab, then select “VAT Returns.” Click on the relevant period to open the VAT201 form.
4. Fill in the VAT201 Form
This form contains several sections:
- Sales and Output VAT: Enter details of standard-rated supplies, zero-rated supplies, and exempt supplies.
- Purchases and Input VAT: Input figures for standard-rated expenses, imports through customs, and other recoverable input VAT.
- Adjustments: Include any corrections or bad debt relief applicable for the period.
5. Calculate Net VAT Payable or Refundable
The system will automatically calculate the VAT payable to the FTA or the amount you are eligible to reclaim based on your input and output VAT.
6. Review and Submit
Double-check all figures. Once satisfied, submit the return online. You will receive a confirmation message and VAT return summary.
7. Make Payment (if applicable)
If you owe VAT, make the payment through one of the following methods:
- e-Dirham or credit card via the FTA portal
- Bank transfer using GIBAN (Generated IBAN for VAT payment)
- Online bank services linked to FTA
Common Mistakes to Avoid
- Incorrect classification of supplies (zero-rated vs exempt)
- Failing to claim legitimate input VAT
- Missing the filing deadline
- Not retaining required supporting documents
Need Help Filing Your VAT Returns?
Filing VAT returns can be stressful, especially when managing multiple invoices, import records, and compliance requirements. This is where PEAK Business Consultancy Services comes in.
At PEAK BCS, we provide end-to-end VAT compliance support to UAE businesses. Our services include:
- Accurate VAT return filing and documentation
- VAT refund claims and adjustments
- Record review and correction of past returns
- FTA audit preparedness
Don’t risk fines or misfilings — partner with experts at PEAK Business Consultancy Services and ensure full VAT compliance.
Conclusion
Filing VAT returns is a crucial task that affects your business’s compliance status in the UAE. By understanding the requirements, preparing documentation, and following the FTA process step-by-step, you can meet your obligations without hassle. But if you prefer to delegate this task to professionals, PEAK BCS is ready to assist with timely and accurate filing services.
To know more or get assistance with VAT filing, visit PEAK Business Consultancy Services today.
