What is VAT Return Submission?
VAT return submission is the process of filing the VAT liabilities with the Federal Tax Authority (FTA). It includes providing a report of VAT applicable sales, purchases, and other activities. An accurate VAT return submission ensures that your business adheres to tax laws and prevents overpayment or underpayment of taxes. Entities are required to calculate the tax and pay it digitally to FTA. For seamless operations, all businesses must submit VAT returns.
Balance Brite is a leading audit firm in Dubai, providing comprehensive VAT return submission services. Our tax experts will handle everything from start to finish, giving you peace of mind. Collaborating with the professionals ensures accurate calculations and trouble-free compliance.
Significance of VAT Return Submission
VAT return submission is necessary to ensure compliance with the Federal Tax Authority (FTA). Businesses can prevent fines and penalties by submitting VAT returns on time and precisely. Firms can benefit from input tax credits, reducing the overall tax payments. A proper VAT record helps to ensure financial clarity for audits.
Who Needs VAT Return Submission Services?
- All VAT-registered businesses are required to report their VAT returns to the Federal Tax Authority (FTA), including those with a turnover surpassing AED 375,000.
- SMEs and large enterprises offering goods and services that are subject to VAT must submit VAT returns.
VAT Return Filing Period
According to the FTA, the businesses must submit the VAT returns by the 28th day of the month following the tax period, or a date set by the Federal Tax Authority (FTA). All the payments must be cleared by the deadline. If somehow the deadline falls on a weekend, it will be extended to the next working day. Generally, the standard tax period for a taxable person is three calendar months; the FTA may assign different tax periods for some businesses, including monthly filings.
Penalties for Late or Incorrect Filing
Businesses may face penalties for late or incorrect VAT filings. Here are the penalties:
- If the business fails to file a return on time, it may face a penalty of AED 1,000. If it repeats the offense within 24 months, it may face a penalty of AED 2,000.
- In case of incorrect submission of the VAT return, the businesses may face a AED 1,000 penalty. If the offense is repeated within 24 months, the offender may face an AED 2,000 penalty.
- Due to late payment, the business may face 2% on the unpaid tax immediately. The monthly penalty is 4% of the unpaid tax and can go up to 300%.
Why Choose Balance Brite for VAT Submission Services
Choosing the right firm for VAT submission can make all the difference and help you ensure compliance with tax laws. Our professionals will provide you with the best assistance, avoiding you from the consequences of being delayed and incomplete VAT submission. Here’s why you should choose us:
Our tax professionals have deep knowledge of UAE tax laws, ensuring returns are submitted timely and accurately. We stay informed about modifications in laws, giving you confidence that your business is fully compliant.
We provide bespoke VAT submission services in Dubai in accordance with your business size and needs.
Our experts check everything from start to finish, ensuring a flawless submission and minimizing the risk of penalties due to inaccurate submission.
You don’t need to worry about deadlines; our system will ensure that your returns are submitted on time.
Frequently Asked Questions
What is VAT return submission in the UAE?
It is the process of reporting VAT liabilities to the Federal Tax Authority. It includes providing a report containing taxables, sales, purchases, and other activities.
What is the deadline for VAT return submission?
The VAT return must be submitted by the 28th of the month following the tax period. In case the deadline is on a weekend or a holiday, it will be extended to the next working day.
What are the penalties for incorrect VAT return submission?
For the first offense, you will face AED 1,000, and if it happens again within 24 months, you will face a penalty of AED 2,000.
Who needs to submit VAT returns in the UAE?
All the registered businesses have to submit the VAT returns.