VAT RETURNS FILING

What does VAT return filing mean?
VAT Return filing is the official tax document to be submitted to the Federal Tax Authority before the due date. VAT Return filing has to be done by the Taxable Person at regular intervals depends upon his tax period. The VAT Return should show the details of any output tax due and input tax recoverable together with other information as required by the format. It can be filed either by a taxable person or any other person who has been authorized to do so on behalf of the Taxable Person (a Tax Agent or a Legal Representative).

When should you account for VAT return filing as per FTA?
VAT Return Filing must be done by not later than 28th day of the month following the Tax period or by such other date as requested by FTA. For example; if your first VAT return period is January 2018 to March 2018, your VAT return due date will be 28th April 2018. Where a payment is due, it should also be paid by the same deadline. Where the due date falls on a weekend or a national holiday, the deadline is extended to the first business day thereafter. Late filing of VAT return attracts penalty of AED 1,000 for the first time of occurrence of a delay. The penalty would be increased for subsequent non-compliance of filing of VAT Return.
The standard Tax period applicable to a Taxable Person is a period of three calendar months. However, FTA has assigned different Tax Periods for certain group of Taxable Persons. Some of them have Tax Period on monthly basis. A Taxable Person has an option to request to the FTA to change his Tax Period. However, it is at the FTA’s discretion to accept the request.