VAT is of recent origin in the GCC countries with the initiatives taken in 2019 and it is being implemented in the UAE. Like every other country, these countries too were looking for an additional source of revenue to boost their finances and economy. UAE being a part of GCC is supposed to implement the VAT system. It becomes necessary, in this context, for the entrepreneurs, business persons, investors, traders and owners to have a clear perception of VAT and of what the registration process is. They should also have a clear view of how the return has to be filed and in what frequency. Once you acquire the knowledge of VAT and its registration process, you will find it convenient and easy to file the return in time and to recognize various points of operation along the line of operation of selling, purchasing, and trading. You will also come to know as to how it should be calculated. In case you have your business establishment in the UAE, it will function as a guide to give you a clear roadmap of the VAT return process and how you can go ahead with it.
What is VAT Return Filing
VAT Return filing is concerned with the filling in the form regarding the sales that attract VAT and also the various expenses incurred during a period. VAT Return filing also shows you pointedly what amount of VAT you are supposed to pay. It also tells you the ways to request for a refund if it arises in the process.
Steps of VAT Return Filing in UAE
First of all, you have to get yourself logged in to the FTA portal. After you get your concern registered for VAT, you are given a user ID and a password. You have to use them to initiate the return filing process. Your next step will be to go to the navigation menu where you will click on VAT 201. After this step, you should select VAT 201-New VAT Return. It will trigger the filing process.
Next step is filling in the details of the taxes including TRN which is a short form of Tax Registration Number. You have also to fill in name and address. It is better if there is a tax consultant at your elbow who can do the filling with required details on your behalf. A TAAN or Tax Agent Approval Number has to be furnished along with the name of the consultant and the number of the Tax Agency.
Now you should select the period of return and do the filling in. This period is about the duration of the filing the VAT returns at the end of the Tax year. This step is very important for the sake of recovering all VAT related proceedings in a particular financial year.
Next step is furnishing of VAT on sales and other inputs. The necessary inputs about the sales and other expenses made in the financial year need to be updated. At the same time, the details of VAT expenses made are to be mentioned. After this, you have to provide the calculation of net VAT dues. If the VAT due is more than the recoverable amount, you need to pay the difference of amount. If it is the other way around, you can request a VAT refund.
The last stage is the stage of declaration. You should tick on the section that has a declaration. You can save the details and submit it later.
GCC Filing provides VAT filing services in addition to bookkeeping services in UAE. It has the professionals on its role and it has the experience to file your VAT returns in 2020 on your behalf. The company also provides services in taxation and tax consultation service in UAE.