As a VAT registrant would you have started collecting VAT on your taxable sales of goods and services with effect from 01st January 2018?
It should be noted that, “VAT Tax return (Form VAT201) and payments must be submitted by the tax registrant companies not later than the 28th day following the end of the Tax Period of the respective company”.
Noncompliance with timely submission of VAT Tax Return (Form VAT201) and payments would lead to fine and penalties as stipulated by Federal Tax Authority in UAE.
It should also be noted that all the tax registrants must file VAT Tax Return (Form VAT201), who have been provided a TRN (Tax Registration Number) under UAE Value Added Tax law and regulations made there under, even if there is no taxable transactions.
Points to be considered before filing of VAT return:
• Return should be prepared as per the Tax period mentioned on your VAT certificate. There are four different 1st tax periods viz. (1) 01 Jan 2018 to 31 Jan 2018, (2) 1 Jan 2018 to 31 Mar 2018, (3) 01 Jan 2018 to 31 May 2018 and (4) 01 Jan 2018 to 30 Apr 2018.
• Return should be filed before due date with payment of VAT. Due date for filing of return and payment of VAT is following 28 of respective tax period.
• A “Nil” VAT return required to be submit, If there is no business transaction for the Tax period.
• Output VAT i.e. VAT on your taxable supplies and Input VAT i.e. recoverable VAT on your purchases during the tax period should be computed accurately and excess of output vat over input vat will be payable to FTA. In case input vat is excess over output vat i.e. you are entitled to claim refund of excess vat paid from FTA.
• With respect to sales and other outputs, emirates wise sales / supplies need to be reported under standard rated (5%) supplies.
• All zero rated supplies i.e. export supplies need to report separately.
• All exempt supplies which are out of scope of VAT needs to be report separately.
• All Supplies of goods and services received which are subject to the reverse charge provisions need account for and report separately.
• Goods imported into the UAE and have been declared through UAE customs need to be report separately.
• Where applicable, adjustments to goods imported into the UAE and which have been declared through UAE Customs need to be report separately.
• With respect to purchases and other inputs, the Taxable Person should report: 1. purchases and expenses that were subject to the standard rate of VAT and for which you would like to recover VAT and any supplies which were subject to the reverse charge for which you would like to recover input tax.
Flying Colour Tax Consultants competent team could assist you in:
1. Timely and Correct Submission of VAT Tax Return (Form VAT201).
2. Timely and Correct Submission of VAT Tax Refunds (Form VAT311).
3. Assistance in preparation of FTA compliant Books of Accounts.
4. Assistance in FTA compliant Record Keeping & Documentation.
This blog post is written by Mr. Dilip. Feel free to call our Tax Advisor today for a quality consultation relating your VAT related queries. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.