VAT Return Filing Service in UAE (1)

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VAT Return Filing Service in UAE
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A tax return is a document through which a tax
registrant submits the details of his provides
and purchases to the Federal Tax Authority (FTA)
in the UAE. VAT return filing in UAE depends on
the tax periods assigned to your business by FTA
upon VAT Registration. FTA, throughout the
approval stages of VAT registration, determines
the tax periods for registrants which can be
monthly or quarterly as the authority may
consider fit.
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VAT return Filing in UAE is totally an online
method through which a tax registrant can present
the value of their sales and purchases and remit
the tax due. VAT return Filing in UAE doesnt
need submission of documents like tax invoices,
tax credit notes at the time of return filing.
The registrant is accountable to keep up all the
documents related to his business and need to
furnish it as and when sought by FTA.
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I m p o r t a n c e o f V A T r e t u r n F i l i
n g i n t h e U A E A s a V A T r e g i s t r a t
i o n i n U A E , i t i s t h e r e s p o n s i
b i l i t y o f a b u s i n e s s t o r e p o r
t t h e d e t a i l s o f i t s p r o v i d
e s t o t h e a u t h o r i t y . c o m p a r i
n g t o t h e o t h e r t a x r e g i m e s
, V A T r e t u r n f i l i n g i n t h e U A E i
s r e l a t i v e l y a n e a s y m e t h o d p
r o v i d e d y o u u n d e r s t a n d t h e l
a w c o m p l e t e l y .
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As it is construed as an uncomplicated method, we
have seen a lot of companies taking it gently
and end up paying hefty penalties. Therefore, it
is Mandatory that you file your VAT return
properly and on time.
Penalties related to VAT return filing in the
UAE If a taxable person fails to file his return
on or before the day of the month, he will incur
a non-filing penalty of 1,000 for the first time.
2,000 in case of repetition.
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If a taxable person fails to remit his dues on
or before the day of the
month, he will incur a non-payment penalty as
follows
2 of the unpaid tax is due like a shot. 4
-dimensional is due on the seventh day following
the deadline for payment. 1 chronicle daily
penalty is imposed charges on any amount thats
still unpaid one month after the due date for
payment, up to a maximum of 300th.
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These VAT penalties will be computed and charged
to your Federal Tax Authority account from the
date of default. Such VAT penalties can result
in huge expenses to a business which can be
avoided if proper attention is given to tax
return filing.
Some of the common errors businesses create
whereas VAT returns Filing.
It is very crucial for a business to know the
layout and reasoning for each column in a VAT
return. only by a proper understanding of the
law, one can understand the intended use of a
specific column in a tax return.
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The most common er ors we have noted are as fol
ows
Non-maintenance of proper records Wrong
emirate-wise reporting Improper adjustment of
bad debts Wrong usage of Adjustment column
just in case of imports Incorrect input claims as
well as personal expenses and entertainment
expenses. Improper adjustment of taxes in wrong
tax periods The wrong usage of Refund and VDF
Forms Non-disclosure of import of service A
business has to be extremely careful in assessing
its capability to address these problems because
it may lead to non-compliance
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