Table of Contents
- 1What Is a UAE VAT Return?
- 2Who Needs to File a VAT Return?
- 3When Is the UAE VAT Return Due?
- 4Step 1: Review the VAT Tax Period
- 5Step 2: Collect the Accounting Records
- 6Step 3: Reconcile Sales and Output VAT
- 7Step 4: Review Input VAT on Purchases and Expenses
- 8Step 5: Review Imports and Customs Transactions
- 9Step 6: Review Credit Notes and Debit Notes
- 10Step 7: Review VAT Adjustments
- 11Step 8: Reconcile the VAT Accounts
- 12Step 9: Prepare the VAT Return
- 13Step 10: Submit the VAT Return Through EmaraTax
- 14Step 11: Pay the VAT Due
- 15What If the VAT Return Shows a Credit?
- 16What If There Were No Transactions During the Tax Period?
- 17Common VAT Return Filing Errors
- 18VAT Return Filing for Businesses with Multiple Activities
- 19VAT Return Filing for Mainland and Free Zone Businesses
- 20How Businesses Can Improve Their VAT Filing Process
- •Frequently Asked Questions
- •How ZILE Global Can Help
VAT-registered businesses in the UAE are required to prepare and submit VAT returns for their applicable tax periods.
A VAT return summarises the business's:
- Taxable sales;
- Output VAT;
- Purchases;
- Input VAT;
- Imports;
- Adjustments; and
- Net VAT payable or refundable.
VAT return filing is more than simply entering figures into the FTA system.
Businesses should first reconcile their accounting records, review VAT treatment, verify supporting documents and ensure that the information reported in the VAT return is accurate.
The Federal Tax Authority states that VAT returns and related VAT payments are generally due within 28 days from the end of the applicable tax period. The exact due date is also reflected in the taxpayer's FTA/EmaraTax account.
A structured VAT return process can help businesses:
- Reduce filing errors;
- Identify incorrect VAT treatment;
- Claim eligible input VAT;
- Monitor VAT payable; and
- Maintain better tax records.
Key Takeaways
- VAT-registered businesses must file VAT returns for their applicable tax periods.
- VAT returns generally need to be submitted and any VAT due paid within 28 days from the end of the relevant tax period.
- The VAT return should include relevant output VAT, input VAT, imports and applicable adjustments.
- Accounting records should be reconciled before the VAT return is prepared.
- Input VAT should only be claimed where the applicable requirements are satisfied and appropriate supporting documentation is available.
- The VAT return should be reviewed before submission through the FTA's EmaraTax platform.
- VAT filing obligations continue even when there are no taxable transactions, subject to the applicable requirements.
- Businesses should maintain supporting records for the VAT figures reported in their returns.
What Is a UAE VAT Return?
A VAT return is a periodic tax declaration submitted by a VAT-registered business to the Federal Tax Authority.
The return reports the business's VAT position for a specific tax period.
The VAT return may include information relating to:
- Sales;
- Purchases;
- Output VAT;
- Input VAT;
- Imports;
- Adjustments; and
- Net VAT payable or refundable.
The purpose of the return is to calculate the difference between:
Output VAT
VAT charged by the business on taxable supplies.
Input VAT
Eligible VAT incurred by the business on qualifying purchases and expenses.
The basic calculation is:
Output VAT – Recoverable Input VAT = Net VAT Payable
Where eligible input VAT exceeds output VAT, the business may have a VAT credit balance, subject to the applicable rules.
Who Needs to File a VAT Return?
Businesses registered for UAE VAT are generally required to file VAT returns for their assigned tax periods.
The frequency of filing may depend on the tax period assigned by the Federal Tax Authority.
Tax periods may vary depending on the taxpayer's circumstances.
Businesses should check their FTA/EmaraTax account to confirm:
- The applicable tax period;
- The VAT return due date; and
- Any required actions.
The FTA states that VAT returns and related payments are generally due within 28 days from the end of the tax period.
When Is the UAE VAT Return Due?
The general deadline is:
Within 28 days from the end of the relevant tax period.
For example, if a tax period ends on:
31 March
The VAT return and any VAT payment are generally due by:
28 April
The exact deadline should always be checked through the taxpayer's FTA/EmaraTax account.
Where the due date falls on a non-working day or public holiday, the applicable deadline may be affected by the relevant rules. Businesses should monitor the exact date shown in their FTA account and avoid waiting until the final day.
Late filing or late payment may result in administrative consequences under the applicable UAE tax rules.
Step 1: Review the VAT Tax Period
The first step is to identify the correct tax period.
Businesses should confirm:
- The start date of the tax period;
- The end date of the tax period;
- The VAT return due date; and
- The relevant VAT return available in EmaraTax.
A business should not accidentally include transactions from another tax period.
The tax period should be clearly identified before beginning the VAT reconciliation process.
Step 2: Collect the Accounting Records
Before preparing the VAT return, the business should collect the relevant financial information.
This may include:
Sales Records
- Sales invoices;
- Credit notes;
- Debit notes;
- Export invoices; and
- Other sales documentation.
Purchase Records
- Supplier invoices;
- Expense invoices;
- Credit notes;
- Import documents; and
- Other supporting records.
Banking Records
- Bank statements;
- Payment records; and
- Receipt information.
Other Information
- Customs documentation;
- Fixed asset purchases;
- Intercompany transactions;
- Related-party transactions; and
- VAT adjustments.
The VAT return should be based on complete and accurate financial information.
Step 3: Reconcile Sales and Output VAT
The business should review its sales during the relevant tax period.
This includes identifying:
- Standard-rated supplies;
- Zero-rated supplies;
- Exempt supplies;
- Out-of-scope transactions; and
- Other relevant VAT treatments.
The business should verify:
- Sales value;
- VAT amount;
- Customer details;
- Tax invoice information; and
- VAT treatment.
The output VAT reported in the VAT return should reconcile with the underlying accounting records.
Businesses should investigate differences between:
- Sales ledger;
- VAT reports;
- General ledger; and
- VAT return figures.
Step 4: Review Input VAT on Purchases and Expenses
The next step is to review VAT incurred on business purchases and expenses.
The business should consider:
- Whether the expense relates to business activities;
- Whether the supplier's tax invoice is available;
- Whether the VAT amount is correctly stated;
- Whether the input VAT is recoverable; and
- Whether any restrictions apply.
Common expense categories may include:
- Office expenses;
- Professional fees;
- Rent;
- Software;
- Marketing;
- Travel;
- Equipment; and
- Other business expenses.
Not every VAT-bearing expense is automatically recoverable.
The input VAT claim should be reviewed based on the applicable VAT rules and supporting documentation.
Step 5: Review Imports and Customs Transactions
Businesses involved in importing goods should review:
- Customs declarations;
- Import VAT;
- Customs documentation;
- Import dates; and
- Accounting records.
Import transactions may require reconciliation between:
- Customs records;
- Accounting records; and
- VAT reporting information.
Businesses involved in international trade should ensure that import and export transactions are correctly reflected in their VAT records.
Step 6: Review Credit Notes and Debit Notes
Credit notes and debit notes can affect the VAT position of a business.
Businesses should review:
- Credit notes issued;
- Credit notes received;
- Debit notes;
- Cancelled invoices; and
- Sales returns.
The VAT impact of these transactions should be correctly reflected in the relevant VAT period.
Incorrect treatment of credit notes may result in:
- Incorrect output VAT;
- Incorrect input VAT;
- Differences between accounting records and VAT returns; and
- Potential compliance issues.
Step 7: Review VAT Adjustments
Businesses may need to consider adjustments relating to:
- Errors from previous periods;
- Bad debts;
- Capital assets;
- Imports;
- Credit notes;
- Business changes; and
- Other relevant transactions.
Adjustments should be supported by appropriate records.
Businesses should not make adjustments without understanding:
- The reason for the adjustment;
- The applicable VAT treatment;
- The reporting period; and
- The required supporting documentation.
Step 8: Reconcile the VAT Accounts
Before filing the VAT return, the business should reconcile the VAT position.
A reconciliation may compare:
- Sales ledger;
- Purchase ledger;
- VAT control account;
- Output VAT;
- Input VAT;
- VAT return figures; and
- VAT payment records.
The purpose is to identify differences before the return is submitted.
A simple reconciliation may include:
Output VAT
Less: Recoverable Input VAT
Add/Less: Applicable Adjustments
Equals: Net VAT Payable or VAT Credit
This reconciliation should be retained as part of the business's tax records.
Step 9: Prepare the VAT Return
The VAT return is prepared through the applicable FTA electronic services.
The FTA's VAT return guidance covers reporting output VAT, input VAT and the resulting net VAT position.
The return should be completed using the information obtained from the accounting and VAT reconciliation process.
The business should review:
- Taxable sales;
- Output VAT;
- Purchases;
- Recoverable input VAT;
- Imports;
- Adjustments; and
- Net VAT payable or refundable.
The figures should be reviewed before submission.
Step 10: Submit the VAT Return Through EmaraTax
VAT returns are submitted electronically through the FTA's EmaraTax platform.
The general process includes:
Step 1: Log In
Access the taxpayer's EmaraTax account.
Step 2: Access the VAT Section
Select the relevant VAT account and available VAT return.
Step 3: Complete the VAT Return
Enter the required sales, purchases, output VAT, input VAT and other relevant information.
Step 4: Review the Return
Check all figures and information before submission.
Step 5: Confirm and Submit
Complete the required declaration and submit the VAT return.
The FTA provides electronic services and user guidance for submitting VAT returns through its online systems.
Step 11: Pay the VAT Due
If the VAT return results in an amount payable, the business should settle the VAT within the applicable deadline.
The FTA's guidance states that VAT returns and related payments are generally due within 28 days from the end of the relevant tax period.
Businesses should confirm:
- The amount payable;
- The payment deadline;
- The available payment method; and
- The payment status.
A VAT return is not fully completed simply because it has been submitted.
Where VAT is payable, the payment should also be completed within the applicable deadline.
What If the VAT Return Shows a Credit?
A VAT return may result in a VAT credit where eligible recoverable input VAT exceeds output VAT.
The business may need to consider:
- Carrying the credit forward; or
- Applying for a refund, subject to the applicable requirements.
The FTA provides refund procedures for eligible VAT credit balances through the EmaraTax platform.
Businesses should retain appropriate supporting documentation for any refund application.
What If There Were No Transactions During the Tax Period?
Businesses should not assume that no activity automatically means no filing obligation.
A VAT-registered business should review the VAT return requirement shown in its FTA/EmaraTax account.
Where a VAT return is required, the business should submit the return even if there are:
- No taxable sales;
- No purchases; or
- No VAT payable.
A nil VAT return may be required depending on the taxpayer's filing obligation.
Businesses should avoid ignoring an open VAT return simply because there was no business activity during the period.
Common VAT Return Filing Errors
Incorrect Tax Period
Transactions may be reported in the wrong tax period.
Incorrect VAT Classification
Transactions may be incorrectly treated as:
- Standard-rated;
- Zero-rated;
- Exempt; or
- Outside the scope of VAT.
Unsupported Input VAT Claims
Input VAT may be claimed without adequate supporting documentation.
Missing Sales
Some sales may not be included in the VAT return.
Duplicate Transactions
Transactions may be recorded more than once.
Incorrect Credit Note Treatment
Credit notes may not be properly reflected in the relevant period.
Failure to Reconcile
Accounting records and VAT return figures may differ.
Late Filing
The VAT return may not be submitted by the applicable deadline.
Late Payment
VAT due may not be paid on time.
VAT Return Filing for Businesses with Multiple Activities
Businesses with different activities may need to carefully assess the VAT treatment of each revenue stream.
For example, a business may have:
- Consulting income;
- Trading income;
- Export income;
- Rental income; and
- Other revenue.
Each category may have different VAT considerations.
The business should review:
- The nature of the supply;
- Customer location;
- Place of supply;
- Applicable VAT rate; and
- Supporting documentation.
A single business may therefore need to apply different VAT treatments within the same VAT return.
VAT Return Filing for Mainland and Free Zone Businesses
VAT filing obligations may apply to VAT-registered businesses operating in:
- Mainland jurisdictions;
- Free Zones; and
- Designated Zones,
depending on their activities and VAT registration status.
A Free Zone business should not assume that its location removes VAT filing obligations.
The VAT treatment should be assessed based on:
- The nature of the transaction;
- The location of the goods;
- The location of the customer;
- The type of supply; and
- Applicable VAT rules.
Businesses should ensure that their VAT reporting is aligned with their actual operations.
How Businesses Can Improve Their VAT Filing Process
Businesses can improve VAT compliance by establishing a monthly process.
Monthly
- Record sales;
- Record purchases;
- Collect tax invoices;
- Reconcile bank accounts;
- Review VAT treatment.
Before Filing
- Reconcile sales;
- Review purchases;
- Check input VAT;
- Review imports;
- Check credit notes;
- Identify adjustments.
Before Submission
- Review the VAT return;
- Reconcile the VAT payable;
- Confirm the deadline;
- Obtain management approval.
After Filing
- Save the acknowledgement;
- Maintain supporting records;
- Pay VAT due;
- Monitor future transactions.
A consistent process can help reduce last-minute errors.
- Practical UAE VAT Return Filing Checklist
- Tax Period
- Have we confirmed the correct tax period?
- Have we confirmed the VAT return due date?
Sales
- Have all sales been recorded?
- Has output VAT been reviewed?
- Have credit notes been considered?
- Have zero-rated and exempt supplies been properly classified?
Purchases
- Have all business expenses been recorded?
- Are valid tax invoices available?
- Has input VAT recovery been reviewed?
- Have restricted or non-recoverable expenses been considered?
Imports
- Have customs transactions been reviewed?
- Has import VAT been reconciled?
Reconciliation
- Does the VAT return reconcile with the accounting records?
- Has the VAT control account been reviewed?
- Have unusual variances been investigated?
Filing and Payment
- Has the VAT return been submitted through EmaraTax?
- Has the acknowledgement been saved?
- Has VAT payable been paid within the deadline?
- Has any VAT credit been reviewed?
Frequently Asked Questions
What is a VAT return?
A VAT return is a periodic declaration submitted by a VAT-registered business to report its output VAT, input VAT and overall VAT position.
When is a UAE VAT return due?
VAT returns and related VAT payments are generally due within 28 days from the end of the relevant tax period. The exact deadline should be confirmed through the taxpayer's FTA/EmaraTax account.
How is a UAE VAT return filed?
VAT returns are submitted electronically through the FTA's EmaraTax platform.
What is output VAT?
Output VAT is the VAT charged by a business on its taxable supplies.
What is input VAT?
Input VAT is VAT incurred on eligible business purchases and expenses, subject to the applicable recovery rules.
Can a business claim all VAT paid on expenses?
No. Input VAT recovery depends on the applicable VAT rules, the nature of the expense and the availability of appropriate supporting documentation.
What happens if input VAT is higher than output VAT?
The business may have a VAT credit balance. It may be possible to carry the credit forward or apply for a refund, subject to the applicable requirements.
Do businesses need to file a VAT return if there were no transactions?
A VAT-registered business should review its filing obligation in the FTA/EmaraTax system. Where a VAT return is required, it should generally be submitted even if there was no activity during the period.
Can a business amend an incorrect VAT return?
Businesses may have correction and adjustment procedures available depending on the nature and materiality of the error. The appropriate procedure should be assessed before making a correction.
What records should be maintained for VAT return filing?
Businesses should maintain appropriate accounting records, tax invoices, credit notes, import documents and other supporting records relevant to the VAT return.
Can a tax consultant file the VAT return on behalf of a business?
A business may engage an authorised service provider or tax professional to assist with VAT return preparation and filing, subject to the applicable access and authorisation arrangements.
How ZILE Global Can Help
ZILE Global provides practical VAT compliance and tax support to businesses operating in the UAE.
Our services include:
VAT Return Filing
- Periodic VAT Return Preparation;
- VAT Return Filing;
- VAT Reconciliation;
- Output VAT Review;
- Input VAT Review.
VAT Compliance Review
- VAT Transaction Review;
- VAT Treatment Analysis;
- VAT Health Checks;
- VAT Record Review;
- VAT Compliance Gap Assessment.
VAT Advisory
- VAT Registration;
- VAT Deregistration;
- VAT Treatment Advisory;
- VAT Refund Assistance;
- VAT Audit Support.
Accounting and Tax Support
- Bookkeeping and Accounting;
- Monthly Financial Reporting;
- Financial Statement Preparation;
- Corporate Tax Compliance;
- Tax and Accounting Process Review.
Our approach combines accounting, VAT and tax compliance expertise to help businesses maintain accurate records and manage their VAT filing obligations in a structured manner.
Is Your VAT Filing Process Ready?
VAT return filing should not be treated as a last-minute administrative task.
An effective VAT process should include:
- Accurate accounting records;
- Proper transaction classification;
- Valid supporting documents;
- Input VAT review;
- Output VAT reconciliation;
- Management review; and
- Timely filing and payment.
ZILE Global can help you prepare, review and file your UAE VAT returns while supporting your broader VAT compliance requirements.
Speak with our VAT specialists today.
Contact ZILE Global to discuss your VAT return filing requirements.
Publication Author
Hameed
Managing Partner
Chartered Accountant & Senior Corporate Advisor providing strategic advice to UAE mainland & free zone enterprises on corporate tax, audit, and regulatory compliance.
