VAT Return, also known as the Tax return is a statement which a registered person needs to submit to the government authority. VAT Return Filing is a structured documentary statement of income earned, the loss incurred if any, and VAT paid and imposed on the total commodities sold for the specified quarterly or monthly period and returned to the Government. Information about the filing VAT Return Form is given below.
VAT Return Process Analysis
The tax return must be submitted in the VAT 201 form, which can be used by all Registrants as soon as the tax period expires. For example, if the first tax period of a Registrant is from 1st January 2020 to 30th April 2020, the VAT 201 Form will be available for use from 1st May 2018 onwards. Errors in the calculation of payable tax of above AED 10,000 should be reported under the Voluntary Disclosure Scheme; however, Errors in the computation of payable tax amount of not more than AED 10000 can be resolved in the next tax return period.
The VAT return format was released on their websites by the federal tax authority. To access it, you will need to log in via your registered username and password to the FTA e-services portal. To complete the VAT return process, the respondent must fill in and apply. VAT Form201 is classified into seven sections, as mentioned below.
- Details of Taxable Person
- VAT on expenses and all other inputs
- VAT Return Period
- Additional reporting requirements
- VAT on sales and all different outputs
- Net Due amount
- Authorized Signatory and Declaration
Each of these sections contains several boxes in which the taxpayer needs to fill in their details to complete the VAT return filing.
Process For Filing VAT Return In UAE
- Sign in to the registered username and password of the Federal Tax Authority portal.
- Select VAT 201 – New VAT returns option for opening the VAT Return form under the e-services section of the portal.
- Fill the details of standard-rated supplies from the box
- Learn about treatment of Tax Refunds provided to Tourists
- Check out the Supplies subjected to the reverse charge provisions.
- Check for Zero-rated supplies
- Check for Exempt supplies
- Standard rated expenses
- Supplies subject to the reverse charge provisions
- Calculation of due tax or recoverable tax for the period
- Refund of excess recoverable tax.
- You will get a confirmation mail after submitting the VAT Return Form. The information of VAt returns can be saved and collated using accounting software.
- Make the Payments
Fields in VAT Return Form 201
The registered businesses in the UAE are required to file an online VAT return. In the UAE, the VAT return form is expected to be condensed. This means the registered company should submit the brief details of commodities supplies such as total sales, total purchases, input VAT and output VAT tax payable.Though the details are at the consolidated level, the businesses are required to classify the supplies into the following categories.
- Exempt commodities
- Standard rated
- Reverse Charge commodities
- Zero rate commodities
- Intra GCC commodities
The registration of the VAT return in the UAE will be entirely online. That means that all UAE registered companies must apply their VAT return declaration by logging into the FTA portal. The FTA Portal only allows returns in an online format, and offline capabilities are currently unavailable to file returns via XML, EXCEL or any other utility. It means that the taxpayer must enter manually in the appropriate VAT boxes available in the FTA portals the VAT values for sales, purchase, output VAT, input VAT, and so on.
Box-1 concerns Emirate-wise standard rating supplies.
(a) The standard rating supply must be stated on the basis of a place of supply closely related to the location of the fixed locality of the registrant for all the businesses established in the UAE.
b) The Emirate wise reporting should be carried out for unregistered businesses on the basis of where the supply has been collected by the recipient. An adjustment column is available as deductions from box 1 Standard Rated Supplies to make changes. The column of adjustment is allowed to show only two objects.
- Bad Debts Tax sum for each emirate should also be recorded, wherever it is applicable.
- A seller of commercial property can also use the Adjustment Column to adjust the sales tax on commercial property which is already paid by the purchaser.
Items To Be Removed From Box One Shall Be As Follows
1. Sale of goods situated within allocated zones, which are not consumed within the assigned zones.
2. Out of Scope commodities.
3. Zero Rated commodities , Zero-rated educational services, Zero-rated healthcare services.
Box-2 refers to the amount of the tax refunds made available to visitors under the "tax refunds for tourists scheme".Mention the tax amount that has been refunded to the tourists under the column 'VAT Amount.' Registrants can only use this box if they are a retailer and provide visitors in the UAE with tax refunds under the "tourist tax refunds scheme." Within this box, the number reported should always be negative. This sum would reduce the overall liability of output tax. If Registrants are not authorized to handle refunds for tourists, this box should remain with the Nil value already pre-crowded.
Box 3 is intended to disclose the tax liability for products that are imported without a customs declaration under the reverse charge mechanism. A box is also intended for disclosing the responsibility for import of services under the Reverse Charge Mechanism. Value in this box will be VAT amount and the net amount of the Output Tax due on this supplies-if the taxable individual is entitled to recover the Input Tax on these imports, and it will be shown in box 10.
Box 4 is intended to declare the value of the products and services that are subject to VAT at zero percent (zero-rated supplies). The supply VAT is measured as Zero, and therefore the Net Supply Value must be reported.
Box 5 is intended to list all products that are exempted. This is only appropriate to disclose the net value of the supply in this box because there is no VAT on the supply.
The Net Value and Production Tax due on goods imported into the UAE is shown in box 6. The statistics in this box are pre-populated based on customs statements made using the Import Code connected to the TRN of the Registrant. The sum would include the customs duty and excise tax levied on imported goods. Output tax Amount is also auto-populated in the column "VAT Amount'' .Agent importing goods should be responsible for paying tax on behalf of non-registered individuals. Hence it will be expressed in this box.
Box 7 is used in instances where the information in box 6 is incomplete or inaccurate.
Box 8 calculates the sum of all boxes listed above from box 1 to 7 automatically.
Box 9 is used to enter all amounts subject to the Standard Rate of VAT that you would like to recover from the Input Tax Credit.
This box enables you to get back any tax paid as an output tax under the reverse charge mechanism mentioned in boxes 3, 6 and 7 of the VAT return. The only recoverable portion should be shown in the Value Added Tax column.
Box 11 then automatically calculates the total values declared in boxes 9 and 10
Box 12 depicts the overall Value of Output Tax that is due for the Tax Period to be calculated as the Adjustments column and sum of the VAT in the Outputs section.
Box 13 shows the total value of the input tax that is recoverable for the tax period, which will be calculated as the value of the VAT and adjustments column in the Inputs section.
Box 14 shows the "Payable Tax" for the period. This will be the total due tax amount for the period less the total recoverable tax for the period and will indicate the net tax payable or receivable for the current tax period. If the value in box 12 is more than the figure in box 13, the difference is the amount of VAT that you have to pay. If the value in box 12 is less than the sum in box 13, you will be eligible to claim a refund for the net amount of the recoverable tax. If you do not wish to request a refund of the excess receivable tax, your excess receivable tax will be carried forward to subsequent tax periods. It may be used to compensate for payable fees or penalties, or you may apply for a refund later at any time.
Box 15 is for making a request for refund. Review all the information entered in the form after completing the mandatory fields and confirming the declaration. Once you are sure that all the information is correct, click the "Submit" button at the bottom right corner of the screen. Upon submission, you will receive a confirmation mail after the submission.
Since the VAT return is to be filed every quarter, Usage of the accounting software to import the return files is imperative. Reach out to our experts who are ready to help you in submitting VAT refund forms. Feel free to contact us!