Filing VAT with Atton Consulting: how to properly file a declaration in the UAE
VAT filing in the UAE - what is the need
In the United Arab Emirates, jurisdiction provides for minimum taxes to be paid. Value Added Tax (VAT) is one of them. The requirement to pay, the procedure and the amount of tax are determined by the regulator - the UAE Federal Tax Authority (FTA). Despite the fact that the tax rate is only 5%, and VAT is submitted online, errors cannot be ruled out when compiling the package of documents and entering information. In order to avoid difficulties with the calculation and payment of VAT, contact the experienced tax experts from Atton Consulting. Our team will take care of the timely filing of VAT, ensure the completeness of the information in the declaration, and provide professional consulting support.
Companies liable to pay value added tax under UAE law must register as a taxpayer with a TRN identification number. Submission of VAT return is done at the end of each tax period and the tax return is sent to the FTA. The VAT returns contain data on purchases and deliveries of the taxpaying company and reflect the obligation to pay the calculated amount of VAT.
It is important to take into account the transactions that were carried out in a given tax period in order to timely attribute value added VAT to the same period. In the Emirates, VAT is not only payable, but also refundable. In order not to get confused in the nuances of the UAE legislation, it is better to use the services of a tax agent from Atton Consulting. So you will always be aware about law updates in time, do not miss deadlines and do not violate the requirements of the regulator.
What is VAT and how is it calculated
Value added tax is the difference that is calculated between the VAT that is payable and the VAT that is charged on purchases in the same tax period - the so-called input tax. In both cases, the VAT is 5%. If the tax payable exceed tax paid, the entity files VAT with the FTA and pays the respective amount. If, on the contrary, the input tax for the same period turned out to be higher, then the difference will be reimbursed by the Federal Tax Agency. Transactions on import and export, as well as on exempt supplies and transactions with a nil tax rate, are accepted for calculation. VAT is calculated on the basis of invoices.
VAT filing procedure
VAT filing is done online through the portal of the Federal Tax Office. The VAT return is filed electronically. At the same time, it is important to comply with all legal requirements.
VAT filing deadlines - within 28 days after the expiration of the tax period. The tax period is the period during which the VAT is calculated. It is determined separately for each type of business. With an annual turnover of less than AED 150 million, the tax period is a quarter. For higher annual turnovers, VAT is submitted on a monthly basis.
The tax office has the right to determine a different period for calculating the VAT. Non-payment of VAT entails a fine in accordance with the provisions of the Resolution of the Cabinet of Ministers No. 40 of 2017 "On Administrative Penalties for Violations of Tax Laws in the UAE". Also, the first tax period of the company can be amended, it is determined by the tax office.
Filing VAT return with Atton Consulting
The procedure for assigning tax consultants from Atton Consulting is an officially registered procedure for companies that are already registered with the FTA. For such clients, we provide regular accounting services.
First step: according as per the conditions of the required VAT period, we prepare a draft VAT report.
The second step: we send the report for the client's approval.
Third step: we submit the declaration approved by the client to the FTA online.
The fourth step: we send the client's parcel for payment.
If you are not yet one of our clients, for a quick and effective result, you will need to take the following actions:
- Submit your request and your contact details using the form on this page.
- Wait for our managers to contact you to clarify the details. We usually reply within 2 -4 hours.
- After discussing all the details, you will need to send the required list of documents for the VAT return.
After that, our team will start processing your VAT return.
VAT filing dates
The last date for filing a VAT return is the 28th day from the end of the tax period. For example, if you are filing a declaration for the 3rd quarter (months of June-August), the due date for filing VAT is September 28th. The exception is days falling on weekends and public holidays, in which case the last day of submission will be moved to the next reporting day.
VAT return filing dates for companies with an annual turnover below AED 150 million*
Last date of submission
*Companies with an annual turnover above AED 150 million must file a return monthly
What does the declaration include
The VAT declaration consists of two sections:
- Main section. It contains information about the company and its transactions for the reporting tax period. It also shows the amount of the calculated VAT.
- Section of additional reporting requirements. It is used only for certain enterprises and certain conditions.
VAT submission is the regulated process and requires special knowledge, experience, and competencies to understand the requirements of the law. Forms are filled with detailed information, with a detailed submission of the financials for transactions of different types. In the calculation process, an adjustment is made between the tax collected and payable. In order to avoid errors in offsets, tax consultants should be involved - experienced specialists at Atton Consulting will fill out a declaration, form a package of documents, and make adjustments in accordance with the law. You can determine in advance the amount to be refunded, for this you can use the online VAT refund and refund calculator, developed by our experts, and do not have to manually calculate the refund. To find out the VAT refund deadline, as well as how to file an amended VAT return, contact Atton Consulting tax consultants.
Benefits of using an Atton Consulting tax agent when filing VAT
In the UAE, the services of a tax agent are not obligatory, however, the use of an experienced tax manager brings benefits in the short and long term. By contacting the Atton Consulting your company can count on:
- Compliance with tax laws, timely updating of information, reconciliation with the current versions of regulatory legal acts..
- Implementation of legal actions - preparation of tax reports, filing a VAT return.
- Consulting support in accordance with tax legislation.
- Assistance in paperwork, in compliance with confidentiality, relevance of information and legislation.
- Professional interaction with tax authorities.
It is not too late to contact a tax agent, even if the company is already facing a fine. On the part of the tax manager, every opportunity will be used to resolve the acute situation. In any case, the agent will become a reliable link between you and the FTA, help you place electronic documents on the IRS website, make the necessary corrections and avoid further violations.
How much is value added tax in the UAE?
The value added tax in the UAE is 5%.
Can I pay VAT without registering as a taxpayer?
No, registration as a payer is required. Otherwise, it will not be possible to file VAT when needed, which may result in sanctions and fines.
Who has to file VAT in the UAE?
If the company's annual turnover is less than AED 187,500, no VAT filing is required. If the amount of turnover is between AED 187,500 and AED 375,000, registration as a taxpayer with the assignment of TRN is optional. If the amount exceeds AED 375,000, registration of the payer and submission of VAT are required.
What is VAT?
Value added tax is the difference that is calculated between the VAT that is payable and the VAT that is charged on purchases in the same tax period - the so-called input tax.
How do I file my tax return?
The VAT return is filed digitally through the FTA Portal. You can do it yourself, but the process of submitting documents is quite complicated and necessitates knowledge of all the requirements and features. To avoid mistakes, please contact the tax consultants of Atton Consulting, we will undertake the implementation of all procedures with guaranteed results.
What is the deadline for filing a tax return?
VAT is submitted within 28 days after the end of the tax period.
How long is the tax period?
For various types of business, the tax period can be a month or a quarter. However, the IRS may designate a different tax period for certain types of business.
What happens if I don't file VAT?
If a taxable entity fails to pay VAT, it will be subject to a penalty of 2% of the unpaid VAT - the amount is payable immediately. Another 4% is due on the seventh day after the end of the payment period. A daily penalty of 1% will be charged on any amount that remains unpaid one calendar month after the payment deadline, up to a maximum of 300%.
How will contacting Atton Consulting help me?
The Atton Consulting team has experienced experts, specialists in the field of tax legislation. We will take on the burden of calculating taxes and filing VAT with the FTA, we will provide professional documentation and date with the tax office.
What other services can I get from Atton Consulting?
We provide comprehensive corporate services in the UAE market: business licensing and company registration, all types of corporate consulting, international business support and visa support, interaction with banks and opening accounts. We will create an individual offer according to your requirements.