Get Professional VAT Filing Services in the UAE
Value Added Tax (VAT) was introduced in the United Arab Emirates (UAE) in 2018, making it mandatory for businesses to register and file their VAT returns quarterly. However, VAT filing can be complex, especially for businesses with multiple transactions and different types of goods and services.
At Atelier Business Center, our seasoned tax experts offer professional VAT filing services to ensure hassle-free and accurate VAT returns for your business. Our years of experience and knowledge in this field make us the go-to choice for businesses of all sizes in Dubai.
Understanding VAT Return Filing: What It Is and When to File?
VAT Filing UAE is the process of submitting a report containing all your business’s VAT transactions within a specific period. This report must be submitted to the Federal Tax Authority (FTA) every quarter.
The deadline for VAT Return UAE is 28 days after each tax period’s end, meaning businesses must file their VAT returns four times a year. If the 28th day falls on a Friday or Saturday or a national holiday, the due date would be the following first business day.
Quarterly VAT Filing Periods in the UAE
Businesses operating in the UAE must comply with VAT filing schedules to meet regulatory requirements and avoid penalties. The Federal Tax Authority outlines the quarterly VAT filing periods to help businesses stay organized and accountable. The quarters may vary from one business to another, depending on their tax periods or accounting period. For example:
First Quarter
January 1st to March 31st (Deadline: April 28th)
Second Quarter
April 1st to June 30th (Deadline: July 28th)
Third Quarter
July 1st to September 30th (Deadline: October 28th)
Fourth Quarter
October 1st to December 31st (Deadline (January 28th)
Penalties for Late VAT Filing
According to the Federal Tax Authority, VAT returns must be filed within 28 days of the end of the designated Tax Period. Failure to comply results in an initial fine of AED 1,000 for the first offence, which increases to AED 2,000 for repeated non-compliance within 24 months. Consistent failure to meet deadlines can also lead to more severe legal actions taken by the FTA.
Besides monetary penalties, late VAT filing can negatively impact a business in other ways. A delayed VAT return can result in postponed refunds from the government, which may disrupt the company’s cash flow and financial planning. Furthermore, frequent late submissions can trigger an audit by the FTA, which could be both time-intensive and stressful.
Benefits of Professional VAT Filing Services
Professional VAT filing services are super-important in ensuring compliance with VAT regulations while minimizing the risks associated with errors and delays. With experts handling your VAT returns, you can trust the process is in capable hands.
Some benefits of seeking professional VAT filing services include:
Accurate VAT Calculation
Professional services ensure that VAT returns are calculated correctly, reducing the risk of mistakes that could lead to penalties or audits.
Timely Submission
Experts help businesses meet deadlines by managing the filing process and avoiding penalties for late filing.
Compliance with Regulations
With in-depth knowledge of VAT laws, professionals help businesses stay updated with tax authorities' latest regulations and guidelines.
Documentation and Record Keeping
Professional services assist in maintaining meticulous records, ensuring all invoices and related documents are organized and easily accessible for audits or future references.
Support During Audits
During FTA audits, professionals can provide assistance and guidance, ensuring that the business addresses inquiries effectively and remains compliant.
Atelier, Your Trusted Partner for Hassle-Free VAT Filing
Atelier’s experienced corporate tax consultants in Dubai offer services ranging from tax declarations to record maintenance. Moreover, our team stays updated on the latest regulations and makes sure your business is always compliant with changes in tax laws.
Contact us today to schedule a consultation and learn more about our corporate tax registration services for businesses in Dubai. We are committed to helping you navigate the complexities of corporate tax compliance so you can focus on confidently growing your business.
- FAQ's
Frequently Asked Questions
Who should file VAT returns in the UAE?
All businesses registered for VAT must file their VAT returns, including those with no taxable transactions during the period.
What are the consequences of failing to file VAT returns on time?
Late filing can result in penalties, delayed refunds, and potential audits by the FTA.
How often do I need to file my VAT returns in the UAE?
VAT returns must be filed every quarter, with deadlines on the 28th of the following month after each quarter’s end.
How much is the penalty for late VAT filing in the UAE?
The initial fine for late VAT filing is AED 1,000, which increases to AED 2,000 for repeated non-compliance within 24 months. Continued failure to meet deadlines can result in more severe legal actions taken by the FTA.
How to calculate VAT liability in UAE?
Use the formula VAT liability = Output VAT (collected) – Input VAT (paid). If the output VAT exceeds the input VAT, the business must pay the difference to the FTA. Conversely, if the input VAT surpasses the output VAT, the business can either claim a refund or carry the excess forward to offset future VAT liabilities.