When it comes to the UAE VAT law, Article (71) of the Decree Law covers aspects like the tax period or return period, TRN number and so on. At the same time, Article (72) covers submission of tax returns and applicability of returns for VAT covering both monthly and quarterly bases.
Learning more about VAT Return Form 201
The tax returns have to be filed in the Form named VAT 201 which will be available for each registrant upon the conclusion of the period for taxation. For example, suppose the first tax period falls between the 1st of February 2019 and 30th of May 2019 for a registrant, then the VAT 201 form will only be available from the 1st of June 2019, onwards.
Errors in calculating payable taxes exceeding AED 10,000 have to be reported under the provided scheme named Voluntary Disclosure. Yet, errors in calculating payable taxes lesser than this amount can be fixed in subsequent tax returns.
Main fields in VAT Return Form 201
Registered businesses have to file VAT returns online in the UAE. The return form should contain details of supplies including total purchases, total sales, input and output VAT and the payable taxes. The supplies have to be demarcated into categories like exempt, standard rated, zero rate and reverse charge supplies along with intra GCC supplies.
Here are the key fields:
- Box 1 – Standard Rated Supplies, i.e. those which have to be reported Emirate wise. Businesses in UAE have to report on the basis of the supply place and Fixed Establishment of the Registrant. Businesses that are unregistered, have to do Emirate wise reporting upon basis of the place where supply was taken by the Recipient. The adjustments column has two items allowed, namely Bad Debts tax amount for every Emirate and also adjustment of output taxes on commercial property by sellers. Items excluded here include sale of goods within designated zones and not consumed there, supplies which are out of scope, zero rated and disbursements.
- Box 2 – Value of tax refunds offered to tourists under the scheme called tax refunds for tourists. Retailers should only use this column if they are offering tax refunds for tourists in the UAE under the scheme mentioned. The amount should be a negative at all times.
- Box 3 – Reverse Charge Mechanism for products imported without customs declaration and reporting of tax liabilities. Service imports in the same manner are also to be reported here. Values will be the VAT value and NET value of taxes due on such supplies.
- Box 4 – Declaration of values of goods and services supplies which are subjected to 0% VAT or zero rated supplies.
- Box 5 – Reports of exempt supplies and only NET value of the same has to be declared here.
- Box 6 – Net Value and output taxes on goods imported to the UAE. Figures are based on the customs declarations via the Import code tied to the TRN of the registrant. Amount includes excise tax and customs duty payable on imported goods.
- Box 7 – Only used when information in the above box is not accurate or complete.
- Box 8 – Automatic calculation of totals of boxes 1-7.
- Box 9 – Entry of amounts subjected to VAT at the standard rate for which input tax credit is to be recovered.
- Box 10 – Recovery of VAT paid as an output tax and based on the reverse charge mechanism as declared in Box numbers 3, 6 and 7.
- Box 1 1- Automatic total calculation for values declared under Boxes 9 and 10.
- Box 12 – Total output tax value which is due for the specific period. This is calculated as the sum of the Adjustments and VAT columns in the Outputs category.
- Box 13 – Total Input Tax values recoverable for the specific tax period and these will be calculated as the sum of the Adjustments and VAT columns in the Inputs category.
- Box 14 – Payable taxes for a particular period, i.e. total taxes due for the period minus total recoverable taxes for a period. It will show net recoverable or payable taxes for the current period of taxation.
- Box 15 – Refund requests and the option is there to choose Yes and refund applications will have to be subsequently finished post submission of VAT returns in the VAT 311 form.
GCC Filings offers more clarity and guidance on VAT returns, filling, accounting, auditing, registration and sections of the VAT law. This comes in helpful for businesses that are not well versed with all norms and regulations yet.