Stay ahead of regulatory deadlines with precision VAT return filings that fully comply with Federal Tax Authority requirements. We manage all calculations, documentation, and submissions so you avoid penalties and focus on growing your business.
VAT is a type of indirect tax that is applied on consumption of goods or services at the point of sale. The periodic summary of total value of supplies/services and purchases, a taxable person has made during the tax period is called VAT return and it shows the taxable person’s VAT liability.
The difference between the output tax payable (VAT charged on supplies of goods and services) for a given tax period and the input tax (VAT incurred on purchases) is the VAT liability of such tax period.
When a VAT liability arises i.e., the output tax exceeds the input tax amount, the difference must be paid to Federal Tax Authority (FTA). While in case the input tax exceeds the output tax, a taxable person will have the excess input tax recovered; he will be entitled to set this off against subsequent payment due to FTA.
Let Virtual Accountants handle the numbers—so you can focus on what you do best: growing your business.
It is mandatory for taxable persons and/or businesses registered under VAT to submit VAT return to Federal Tax Authority (FTA) regularly at the end of each tax period. Usually, it is required from taxable persons to submit the VAT return electronically through the FTA portal (eservices.tax.gov.ae) within 28 days of the end of the tax period. The tax period for different businesses is different but the standard tax period is:
We at “Virtual Accountants (VA)” are providing VAT return filing services in UAE on quarterly and monthly basis, according to Company’s tax period. Our exclusive VAT services cover all aspects of VAT in UAE.
Virtual Accountants is equipped with a team of enthusiastic VAT experts who will not let your business lag behind due to your lack of familiarity with VAT rules and regulations, structure and compliance issues and lack of an efficient accounting system. We will make sure that your accurate and timely VAT return filing keeps you safe from potential FTA fines and penalties.
We’re always on the same page with Government Agencies, working together to get the job done!
We’re always on the same page with Government Agencies, working together to get the job done!
To file VAT returns in the UAE:
VAT returns are usually due within 28 days after the tax period ends (monthly or quarterly depending on FTA assignment).
Mainland companies must report all taxable supplies and imports. Free Zone companies in Designated Zones may be exempt from VAT on specific transactions, but must still declare imports, exports, and intra-GCC sales. Failure to differentiate Designated vs Non-Designated Free Zones often causes errors in VAT return filing.
For imports, businesses must self-account VAT under RCM. This means VAT is declared both as output VAT (sales) and input VAT (purchases) in the return. Incorrect reporting under RCM is a major reason FTA rejects or queries VAT returns.
Minor errors can be corrected in the next VAT return if they do not exceed AED 10,000. For higher discrepancies, a Voluntary Disclosure (Form 211) must be submitted. Ignoring errors increases audit risks and attracts penalties starting from AED 3,000.
Businesses should maintain:
When input VAT is higher, businesses can either:
Exports outside the GCC are zero-rated but require customs/export documentation. Intra-GCC supplies may be taxable or zero-rated depending on recipient’s VAT registration status. Incorrect reporting of GCC transactions is one of the top triggers of FTA queries.
Yes, businesses under common ownership may apply for VAT group registration. Once approved, they file a single consolidated VAT return. This eliminates VAT on inter-company transactions but creates joint liability—meaning penalties on one entity apply to the whole group.
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