A VAT return is an official document that every registered business must submit to the Federal Tax Authority (FTA) at regular intervals. This report details the amount of output tax collected and input tax recoverable, along with any other required information. In the UAE, VAT returns are typically filed quarterly, but for some businesses, it may be on a monthly basis. All returns, including a “NIL” return for periods with no transactions, must be filed online through the FTA’s portal before the specified deadline.
Penalties
Penalties for Non-Compliance
Failing to submit or pay your VAT on time can result in significant penalties imposed by the FTA.
Penalty for Late Submission of a VAT Return:
-First Offense: AED 1,000
-Repeat Offense (within 24 months): AED 2,000
Penalty for Late Payment of VAT:
-Immediate Penalty: A penalty of 2% of the unpaid tax is due the day after the deadline.
–Additional Penalty: A further 4% of the unpaid tax is due on the seventh day following the payment deadline.
–Daily Penalty: A 1% daily penalty is charged on the unpaid amount after one month from the due date, with a maximum cap of 300% of the unpaid tax.
How We Can Help
Our team of tax experts and specialists is dedicated to helping businesses comply with all regulations set by the FTA. We provide professional advice and services to ensure your VAT return filing process is smooth and accurate.
Our dedicated team carefully monitors all filing deadlines determined by the FTA and handles the entire return filing process on your behalf. We ensure your submission is timely, helping you avoid hefty penalties and maintain full compliance with the law.