VAT Returns Filing

UAE has implemented VAT starting Jan 2018. Depending on size of the company, the Federal Tax Authority has fixed the VAT return timelines to monthly and quarterly, which will be communicated and reflected in individual company’s Tax Certificate. The VAT returns in UAE are online returns. The registered businesses are required to generate VAT returns in an acceptable format as prescribed by FTA and upload the return file in the portal. As a result, it is crucial for businesses to have a right software which helps in accounting VAT and has a capability to generate the return file in XML or Excel format.

Secondly, one of the FTA’s requirement is that the tax accounting software should generate the VAT return file as per the prescribed format which businesses can upload in FTA’s e-tax portal. Only those return files which are generated from a certified tax accounting software will be allowed to be uploaded into FTA portal. While the return filing facility is yet to be made available in the FTA portal, we are listing down the return filing process or steps to file the VAT return in UAE.

Registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. The steps to file the VAT return are given below:

  • Generate the VAT return file from the accounting software.

It is very important for businesses to note that the VAT return file, generated only from the certified tax accounting software, will be allowed to be uploaded in the FTA’s e-tax portal. Here, certified tax accounting software refers to that software which meets the guidelines set by the FTA.

Thus, it is crucial for businesses to evaluate the right software as certified by the FTA, so that they are allowed to generate the VAT return file easily.

  • Login to FTA e-tax portal using your login credentials and upload the return file.

After generating the VAT return file, you need to login to the FTA’s e-tax portal using the credentials. Using the e-tax portal upload option, you need to browse and select your return file.

  • Validation and Auto Fill VAT Return Details.

Once the file is uploaded, you need to click ‘Auto Fill VAT Return’ which will auto-populate the details from the VAT return file to the VAT return form in the FTA’s e-tax portal. Once this button is clicked, the FTA portal will validate or authenticate whether the uploaded file has been created by a certified tax accounting software. If the file is authenticated, only then the details will be auto-populated into the VAT return form. If the file is not authenticated, it will be rejected and an appropriate error message will be displayed.




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