Who Must File VAT Returns in Dubai?

Businesses registered under VAT in Dubai are required to file VAT returns as a legal obligation. Companies generating taxable supplies over AED 375,000 annually must register for VAT, whereas those earning between AED 187,500 and AED 375,000 can opt for voluntary registration.

Step-by-Step VAT Return Filing Process

• VAT Registration – Ensure your business is registered with the FTA and has a valid Tax Registration Number (TRN).
• Maintain Proper Documentation – Keep accurate records of invoices, tax payments, and sales transactions.
• Compute VAT Payable – Determine the VAT collected from customers and deduct the VAT paid on purchases.
• Access the FTA e-Portal – Log in to the online platform to initiate the VAT return submission.
• Fill in the VAT Return Form – Enter all required details accurately and verify calculations before submitting.
• Make the VAT Payment – If your VAT payable exceeds the VAT refundable, ensure the due amount is paid before the deadline.

VAT Return Filing Deadlines in Dubai

Businesses must file their VAT returns within 28 days following the conclusion of the tax period to avoid penalties. Failing to file on time can result in penalties, making it essential to adhere to deadlines.

Common VAT Filing Mistakes to Avoid

• Inaccurate VAT calculations
• Failing to keep proper records of invoices
• Delayed submissions leading to fines
• Incorrect input VAT claims

Popular VAT and Accounting Software Solutions

• QuickBooks: Known for user-friendliness, QuickBooks supports VAT tracking, real-time reporting, and integrates well with bank accounts for automated reconciliations. It’s popular among small to medium businesses.
• Xero: Xero offers automated VAT calculations, invoicing, expense tracking, and direct VAT return submission in some countries, especially beneficial for growing businesses.
• Zoho Books: This software provides VAT-compliant invoicing, automated VAT returns, and multi-currency support, ideal for businesses with international transactions.
• TallyPrime: Widely used in India, TallyPrime offers GST/VAT solutions for accounting, reporting, and compliance, making it suitable for businesses managing Indian VAT regulations.
• Sage Business Cloud: Sage provides robust accounting tools with comprehensive VAT compliance features, such as VAT reporting and customizable VAT rates, useful for larger enterprises and multinational companies.

Benefits of Hiring VAT Return Filing Experts

Filing VAT returns can be complex, especially for businesses unfamiliar with tax laws. Professional VAT consultants can help ensure compliance, reduce errors, and submit accurate returns on time, preventing unnecessary penalties

Final Thoughts

Filing VAT returns is a crucial compliance requirement for businesses operating in Dubai. Staying compliant with tax regulations can save your business from legal complications and financial penalties. By understanding the filing process, maintaining accurate records, and seeking expert assistance when needed, you can ensure a hassle-free VAT return submission.Need professional VAT return filing in Dubai? contact now for more services!