VAT and Excise Returns Filing
VAT & ExciseReturns Filing
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vat registration dubai
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Excise
Returns Filing
How do I file excise
tax returns in the UAE?
You must create your e-services account on the FTA website Login/Sign up a page using your email address and then sign up. Once you have completed your Excise Tax Declaration, Liability, and Deductible forms (as relevant to your business activities), you will be required to complete your monthly Excise Tax Return form. Please access the Excise Tax Return User guide – 2019 and read section 2.5 page 85, for step-by-step filing details.
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vat registration dubai
When do businesses
need to file excise returns?
The tax period for each excise tax return is one calendar month. Businesses should file their tax returns through the online FTA portal within 15 days of the tax period. Failing to do which they will be incurred with a non-filing penalty of AED 1000 for the first time and AED 2,000 in case of repetition.
Submitting an
excise tax return
The details submitted during filing declarations will be added to the excise tax return and will be auto-populated at the end of the return period. The taxable person should thoroughly check the information provided within the return and if it is correct prior to submission. He should then submit the excise tax return and complete the payment for excise tax.
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What happens when
excise goods are imported?
In the case of the import of excise goods into the UAE, the tax gets due on or before the date of import. The process is different for registered and non-registered importers.
Non-registered importers
A non-registered importer person is the one who imports excise goods and is exempted from registration under the excise tax law. Following steps are required:
The non-registered importer will have to log on to the FTA website and complete an import declaration. This declaration will include the details of the goods which are being imported into the UAE.
Using the standard price list published by the FTA, the declaration will automatically calculate the tax liability due on the import of the goods.
If the price of the excise good is not available on the FTA list, the importer should self-declare the tax payable based on the retail sale price.
The importer will have to pay the excise tax due before the goods’ pass-through Customs.
Trial balance including all transactions up to the liquidation date. This document and other required accounting information up to the date of liquidation of the company is required.
Once they have confirmed that all the details in the declaration are correct, the goods will be cleared and allowed to enter the UAE.
II-Registered importers
A registered importer is taxable under the excise tax and has registered for it. Registered importers will follow a similar procedure to non-registered importers, except that:
The tax liability will not be payable until the excise tax return is filed. After the Customs Department has verified the declaration details, the goods will be cleared and allowed to enter the UAE.
The information included in the import declaration will be maintained in the FTA system and will be associated with the importer’s tax registration number (TRN).
Later, when the taxable person files their returns, the tax information for the excise goods will be populated automatically.
Excise tax
payment workflow
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Deadlines for excise
tax submission and payment
Excise tax returns should be submitted within 15 days after the relevant tax period. Excise tax should be paid 15 days after the end of the calendar month. If the filing deadline falls on a weekend or a national holiday, it will be shifted to the first working day that follows the holiday or the weekend.
What is
refundable tax?
In certain cases, that the excise tax which has previously been paid on excise goods, is refunded by FTA. In which case, the value of the tax from the total excise tax payable to the FTA is deducted by the taxable person on his excise tax return in the next month.
VAT Return Filing in UAE – Process of Filing VAT Return in UAE – VAT Return Form 201
Under UAE VAT law, all the businesses operating in any of the emirates of UAE, are required to file VAT Return online using the Federal Tax Authority (FTA) portal. The FTA Portal is designed to accept returns only through online mode. Currently, there is no facility to file VAT returns offline through XML, EXCEL, or any other utility. This requires the taxpayer to manually provide the values of Sales, Purchase, Output VAT, Input, and Input VAT, etc. in the appropriate boxes of the VAT return form available in the FTA portal.
The VAT Return form is called ‘VAT 201’ which is required to be filled by the registrant in order to complete the submission of the VAT Return filing. The Form VAT 201 is broadly categorized into 7 sections as mentioned below:
Taxable Person Details
VAT Return Period
VAT on sales and all other outputs
VAT on expenses and all other inputs
Net VAT Due
.Additional reporting requirements
Declaration and Authorized Signatory
To study the process of filing the VAT form please refer to the Federal Tax Authority – Dubai website or check the Excise Tax Return User guide – 2019 and read section 2.5 page 85, for step-by-step filing details.
Conclusion
The UAE VAT return filing requires filling details at a summary level. i.e. the consolidated details of Sales, Purchase/expenses, output VAT, and input VAT. These details need to be presented as per the format prescribed by the Federal Tax Authority (FTA). This is not a mere consolidation of data, but it requires a sub-level declaration of details based on the eligibility. It could get challenging for businesses to manually compile transactions for filing VAT Returns resulting in the risk of missing deadlines which eventually lead to non-compliance. By acquiring the right tax accounting software, businesses can easily generate accurate VAT Returns with zero or minimum efforts and more importantly, avoid the hefty penalties ranging from AED 1,000 to 3,000 for non-filing or incorrect filing of VAT Returns.
FAQ’s
A VAT return is a form you fill in to inform HM Revenue and Customs (HMRC) about how much VAT you have paid and charged to other businesses. You have to send a VAT Return to HMRC every 3 months. It is important because it summarizes what you have already paid and what you have sold. This summary is required to be sent to the HMRC and you also need to complete all detailed records.
The standard VAT return filing period will be on a quarterly basis. The authority can request a certain type of business to file a VAT return every month to reduce the risk of tax evasion. It also improves the monitoring of compliance adherence by the business.
It is important for you to include your total sales and purchases as well as your name, address, and TRN of the Registrant, the tax period related to VAT return filing, and the date of submission of the UAE VAT return. You might also need to have a value of taxable supplies made by the person in the tax period and the output tax charged Emirates-wise.
A VAT penalty of AED 1,000 will be levied on VAT registrants in case of unable to file their VAT returns within the time frame set by the Federal Tax Authority. If the same person repeats the same mistake within 24 months, then he will be penalized with AED 2,000.
An excise tax return summarizes produced and excise tax paid, any business that imports or excises goods from a designated zone in the UAE must file for excise tax. Businesses should file returns for the excise tax online using the FTA portal and the online form is available in both Arabic and English.
The tax period for each excise tax return is one calendar month and the businesses should file their excise tax returns in UAE through the online portal of FTA within fifteen days of the tax period.
You must know about the eligibility of excise tax which is imposed on the sale of things like airlines, fuel, heavy trucks, indoor tanning, tobacco, tires, and other goods and services. Most commonly, alcohol, tobacco, and gasoline are the three prominent items for excise tax. All the documents and online form filing information should be known by all the taxable entities.
