A tax return is a document which comprises of the taxpayer’s tax liability and details related to payment. It is usually submitted online by a taxpayer in compliant with a form prepared by the GAZT. In other words, the taxpayer is collecting VAT on behalf of the General Authority of GAZT. Thus, as a taxpayer, you have the right to claim back VAT paid on your taxable purchases. In order to provide details of their transactions, the taxpayers are needed to file returns. After you have submitted the VAT return form, the taxpayer will be asked to pay the VAT liability. This set of activities is commonly known as VAT Return Filing in UAE.
How do you Know if your Business needs to Pay VAT?
Here is the list of aspects which makes you eligible to pay VAT.
- All businesses and companies which have an annual taxable supply of goods in excess of SAR 375000 are required to register for VAT. If your business falls in this category, you also need to register it with the GAZT
- If your business is generating less than SAR 187,500 annual revenue, then you are exempted from the registration process
- Businesses associated with the providence of goods and services which are not subjected to VAT are not required to register for VAT
The timeline for filing returns
To be precise, the tax period can be monthly or quarterly which also depends on the owner’s annual turnover. Note that there are two groups of taxpayers. One group is those businesses with annual taxable sales over 40 million SAR. These businesses have to file monthly returns. On the other hand, there are businesses with annual taxable sales under 40 million SAR. These businesses have to file quarterly returns.
You can Extend the Deadlines for your VAT Payment
In case you are unable to make your VAT payments by the due date, you can request an extension from the GAZT. However, it is important for you to note that the request must comprise of the following aspects:
- The amount of tax you owe which is also known as liability
- The tax period associated with liability
- The reason for the extension of deadline
If all these aspects are there in your request, the GAZT will approve or reject the extension. It will also apprise the tax payer within 20 days after the request is submitted.