How to Fill VAT Return Form?
Business entities are required to file their VAT returns online using the Federal Tax Authority (FTA) portal. The online FTA portal is purposefully designed to accept VAT returns using the online mode. The taxpayer must provide information like values of Sales, Purchase, Input VAT, Output VAT, etc. while filling the VAT Return form in the FTA portal.
The form is known as ‘VAT 201’ available on the FTA portal, it is generally categorized into eight sectors mentioned below:
- Taxable Person Detail
- VAT Return Period in Dubai, UAE
- VAT on sales and all other outputs
- VAT on expenses and all other inputs
- Net VAT Due
- Declaration and Authorized Signatory
- Additional reporting requirements
- Online Payment
There is another form known as ‘VAT Voluntary Disclosure Form 211’ available on the FTA portal; however, it only needs to be filled under specified situations. Every section of the form comprises of various boxes wherein the accurate and updated information is to be furnished by the taxpayer to complete the VAT Tax return filing.
Process of filling the VAT Form in Dubai, Abu Dhabi, Sharjah, UAE
The taxpayers must log in to the FTA e-Services portal using their registered credentials (username and password) for accessing the VAT Return Form 201. To initiate the VAT return filing process, click on the ‘VAT 201- New VAT Return’ many sections of the VAT return form will open.
Step 1: Detail of Taxable Person in Dubai, Abu Dhabi, Sharjah, UAE
Details such as Tax Registration Number (TRN) of the taxpayer, name, and address of taxpayer gets automatically filled. If a tax agent submits the VAT return on behalf of a taxpayer, the details of the Tax Agent Approval Number (TAAN) and the associated Tax Agency Number (TAN) along with the Tax Agent and the Agency name gets automatically populated at the top of the VAT Return.
Step 2: VAT Return Period
In this section VAT return period for which you are currently filing a return, the Tax Year-end, VAT return period reference number, and VAT return due date will be auto-populated. The tax year-end is important for businesses that are not able to recover all of their input VAT and need to perform an input tax apportionment annual adjustment. Such adjustment is allowed only in the first return following the tax year-end. VAT return period reference number indicates the VAT return period which you will be completed within that tax year. If the VAT return period reference is 1, those businesses should include their input tax apportionment annual adjustment in that VAT return.
Step 3: VAT on Sales and Other Outputs
Here, companies need to furnish the details of standard rate taxable supplies at the Emirates level, zero rate supplies, exempt supplies subject to reverse charge mechanism, etc.
Step 4: VAT on Expenses and Other Inputs
Businesses in this section furnish the details of purchases or expenses on which they have paid VAT at a standard rate of 5% and supplies subject to reverse charge basis along with the eligible recoverable input tax.
Step 5: Net VAT Due
This section indicates VAT payable for the VAT return period. The amounts will be calculated based on the information declared in Sales, purchases, and all other sections.
Post VAT Filing, the information in the VAT Return Form, the net amount payable gets automatically calculated. In a case where the payable value is negative, the taxpayer gets two options – to carry forward the amount to the next Tax period or to get a refund.
Step 6: Additional Reporting Requirement
This section is applicable only for businesses which are operating or using the provisions of the Profit Margin Scheme during this period, in all other cases just tick ‘No’ It will not have any financial impact on VAT Return.
Step 7: Declaration and Authorized Signatory
Here provide the authorized signatory details and tick the box next to the declaration section to submit the VAT Return.
Step 8: Payment of VAT to FTA in Dubai, Abu Dhabi, Sharjah, UAE
The final step is to make the actual payment online, for which companies need to choose the appropriate method. Payments can be made via exchange houses in UAE using companies’ GIBAN numbers.
Following points should be taken care of while filing VAT Return:
- All amounts should be in AED Currency
- All amounts should be rounded off to the nearest figure of the fills
- All mandatory fields should be filled