Introduction:

Since 2018, the UAE has implemented Value-Added Tax (VAT) at 5%. All businesses with taxable supplies exceeding AED 375,000 per year must file VAT returns. This guide explains how to file VAT returns online, deadlines, and penalties for late filing.

1. Who Must File VAT Returns in UAE?

✔ Businesses with annual revenue above AED 375,000 (mandatory registration)
✔ Businesses with revenue between AED 187,500 - AED 375,000 (voluntary registration)
✔ Companies selling taxable goods/services

2. UAE VAT Filing Deadlines

✔ Quarterly VAT Filers → Must file VAT returns every 3 months
✔ Monthly VAT Filers → Must file VAT returns every month

Deadlines: VAT returns must be filed by the 28th day following the end of the tax period.

3. Step-by-Step Guide to Filing VAT Returns in UAE

📌 Step 1: Log in to the FTA Portal (tax.gov.ae)
📌 Step 2: Select VAT 201 Form
📌 Step 3: Enter Sales, Purchases, Output VAT, and Input VAT
📌 Step 4: Submit the VAT return and make payment via e-Dirham or bank transfer

4. VAT Penalties in UAE for Late Filing

🚨 AED 1,000 fine for first-time late filing
🚨 AED 2,000 fine for repeat late filing within 24 months
🚨 5% - 25% penalty on unpaid VAT

5. Common VAT Filing Mistakes

🚫 Incorrect Input VAT claims
🚫 Not filing zero-rated and exempt sales correctly
🚫 Failing to keep invoices and records for 5 years

Conclusion

Filing VAT returns correctly and on time is crucial to avoid penalties. Need help? TaxGPT UAE provides AI-powered tax support for seamless VAT compliance.