The consumption of goods and services is subject to Value Added Tax (VAT). Whether a new or existing business, filing a VAT return may be a highly beneficial move for the company because it helps to build a positive image of the company in the eyes of the government as well as current and potential investors. VAT is now recognised all around the world, with more than 180 nations accepting the system.
The importance of VAT filing has been recognised by Middle Eastern governments, particularly the United Arab Emirates, which has worked relentlessly to establish itself as a corporate hub. Recognizing this, the GCC countries enacted VAT legislation and agreed on a 5% VAT rate. If you’re planning a business in the UAE, you should be aware of the VAT return filing and other VAT-related procedures.
Extra taxes, such as Value Added Tax (VAT), are frequently paid by businesses, but these costs are often refunded later. VAT Return Filing is the process through which a company declares how much more it paid to the relevant authority.
During the filing procedure, the taxpayer is in charge of calculating the VAT return. It is determined by taking into account the following factors:
Regardless of the type of VAT registration or sales, purchases, output tax, input tax, etc., all businesses that have already registered for VAT are required to file VAT returns. Management might enlist the help of experienced advisors to ensure that no errors are made when filing taxes.
Businesses can file their VAT returns online through the Federal Tax Authority (FTA) webpage, where the VAT 201 form can be found. To obtain this form, the taxpayer must first log into the FTA e-Services portal and then select the VAT option. After that, a drop-down option will appear, from which the company must choose VAT 201. Following that, the company must select VAT Return from the navigation menu.
It is necessary to fill in the following information:
The taxpayer will receive an e-mail from the FTA verifying the submission of the VAT return form once it has been properly filled out and submitted. The tax payer must pay the appropriate tax, if any, through one of the several payment channels available, such as E-dirham, exchange houses, online bank transfers, over-the-counter bank payments, and so on, after completing the return.
The following are the details that must be filled out on VAT Form 201:
VAT compliance is associated with a certain amount of corporate goodwill. In reality, many multinational corporations are hesitant to do business with non-VAT-registered businesses. Once a firm is registered under VAT law, its image is enhanced. In comparison to any other indirect tax, VAT is easier to manage.
As a result, you can see how critical it is for firms to adopt the VAT filing process and to become VAT compliant when conducting multi-national operations. VAT filing not only protects your business, but also provides legal assurance and proof of your company’s existence. It also gives you an advantage in terms of tax payments and helps you avoid financial loss.
Accroun has been working as a business consultant for over a decade, assisting firms with their accounting, taxation, and financial needs. VAT is a time-consuming procedure. Our company specialists would start from the ground up and make the situation far more manageable. Accroun seeks to provide you with the transparency, control, and better understanding of your company dealings that will help you optimise your profits while lowering your costs. Please contact us to begin the process; we’ll be pleased to help.
We will assign a dedicated and qualified team to your entity, who will assist you in ensuring statutory compliance and providing necessary management reports.