What is VAT return?

VAT is an indirect tax imposed at the point of sale on the consumption of products and services. The periodic summary of the total value of supplies/services and purchases made by a taxable person during the tax period is referred to as a VAT return, and it indicates the taxable person’s VAT liability.

VAT liability

VAT liability is the difference between the output tax payable (VAT charged on supplies of products and services) and the input tax (VAT incurred on purchases) for a given tax period.

When a VAT liability arises, i.e., when output tax exceeds input tax, the difference must be paid to the Federal Tax Administration (FTA). In the event that the input tax exceeds the output tax, the excess input tax will be refunded to the taxpayer, who will then be able to offset this amount against future FTA payments.

When to submit a VAT return?

Taxable persons and/or businesses registered for VAT are required to submit a VAT return to the Federal Tax Authority (FTA) at the conclusion of each tax period. Generally, taxable persons are required to submit their VAT returns electronically via the FTA portal (eservices.tax.gov.ae) within 28 days of the end of the tax period. various businesses have various tax periods, but the following is the standard tax period:

·        quarterly for companies with an annual revenue of less than AED150 million and.

·        monthly for enterprises with an annual revenue of at least AED150 million.

Consequences of VAT non-filing

In accordance with the provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violators of Tax Laws in the UAE, a taxable person and/or a VAT-registered business that fails to submit a tax return within the prescribed timeframe shall be subject to fines.

Where we originate

According to the tax period of the company, “Elucidation for Accounting (ElucidationAcc)” provides VAT return submission services in UAE on a quarterly and monthly basis. Our VAT services encompass every aspect of VAT in the UAE.

ElucidationAcc Accountants has a team of ardent VAT specialists who will not allow your business to fall behind due to your lack of familiarity with VAT rules and regulations, structure and compliance issues, and absence of an effective accounting system. We will ensure that your expeditious and accurate filing of your VAT return protects you from potential FTA fines and penalties.

Consultancy

At Elucidation for Accounting (ElucidationAcc), our highly qualified team provides a vast array of advisory services at competitive rates. The services are intended to provide our esteemed clients with high-quality, valuable services within the requested time frame.

The team of consultants at ElucidationAcc are professionally trained and have experience delivering similar services in UAE and GCC. We guarantee our clients the highest quality service regardless of the effort and constraints involved in service delivery, as customer satisfaction is of the utmost importance to our mission of serving our clients and society while maintaining our integrity. We have a history of providing exceptional service and exceeding our clients’ expectations.