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VAT Return is the official VAT return form (VAT 201) used in the UAE to declare and report VAT obligations to the Federal Tax Authority (FTA). It is divided into several sections that capture essential VAT-related data:
1. VAT on Sales and Outputs This section details the VAT collected from customers on all taxable sales, exports, and other taxable supplies made during the reporting period
It includes both standard-rated and zero-rated supplies.
2. VAT on Purchases and Inputs This section records the VAT paid on purchases, expenses, and inbound supplies that are eligible for VAT recovery
Proper documentation like invoices must support the input VAT claims.
3. Net VAT Due or Refund
The system calculates the difference between output VAT (sales VAT) and input VAT (purchases VAT)
If output VAT exceeds input VAT, the business owes the difference to the FTA.
If input VAT exceeds output VAT, the business can either claim a refund from the FTA or carry forward the excess to the next reporting period.
All VAT-registered businesses are required to file VAT returns with the Federal Tax Authority (FTA) via the online portal EMARATAX. VAT returns are generally filed either monthly or quarterly, depending on the business’s turnover and regulatory obligations. Taxable businesses must file VAT returns within 28 days of the end of their tax period, which is a specific time frame used to calculate and pay the payable tax.
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