A VAT return is the report you send to the Federal Tax Authority showing the VAT you collected and the VAT you paid. For a registered business, filing it on time is a legal requirement, even when no VAT is payable.
What a VAT return is
It shows how much VAT you owe the FTA, or can claim back. Output VAT is the tax you charge on sales and input VAT is the tax you pay on business expenses. If your output VAT is higher, you pay the difference. If your input VAT is higher, you may be due a refund.
Who must file
- Mandatory registration applies when taxable supplies exceed AED 375,000 a year. Filing is then compulsory.
- Voluntary registration is available from AED 187,500, and it can help startups and small businesses recover input VAT.
Registered businesses must file even when they made no sales in the period.
The deadline
Filing periods are monthly or quarterly, depending on the business and the FTA's instructions. Returns are generally due within 28 days after the end of the tax period. Late filing attracts fines even when no VAT is payable.
Documents to have ready
- Sales and purchase invoices
- Credit and debit notes
- Import and export records
- VAT calculation summaries
Accurate records reduce errors, penalties and audit risk.
Where to file
Online through the EmaraTax portal. After logging in with your registered credentials you can view your obligations, submit returns and make payments.
Step by step
1. Log in to EmaraTax and confirm your details. 2. Select the VAT 201 return. 3. Enter your total sales and output VAT. 4. Enter your expenses and input VAT to calculate the net VAT payable. 5. Review every entry, then submit. 6. Pay any VAT owed through the portal.
Understanding the VAT 201
The form has sections for sales and output VAT, expenses and input VAT, the net VAT payable, and standard-rated and zero-rated supplies. Match each entry to your invoices and your accounting records before you submit.
Common mistakes
- Calculation errors, so double-check the totals and use accounting software
- Missing or incomplete records
- Mixing up standard-rated, zero-rated and exempt supplies
- Claiming input VAT without a valid invoice
Penalties
Late filing is commonly penalised with AED 1,000 for the first offence and AED 2,000 for repeats. Incorrect submissions can attract additional penalties, and unpaid VAT carries percentage penalties that grow over time. Confirm the current schedule on the FTA website.
To avoid fines, set deadline reminders, keep your records current and file early.
Tips
Use accounting software that automates the calculations and reduces errors. A VAT specialist can make sure the filing is accurate, reduce your penalty risk and save time.
See our VAT services and our accounting and bookkeeping service, or read about VAT health checks.
Key takeaways
- Returns are generally due within 28 days of the period end, on EmaraTax.
- File even if there were no sales; late filing is fined.
- Match every entry to invoices and accounting records.
Frequently asked questions
Do I need to file if I had no sales?
Yes. Registered businesses must file every period.
When is the return due?
Generally within 28 days after the end of the tax period.
What is the penalty for late filing?
Commonly AED 1,000 for the first offence and AED 2,000 for repeats. Check the current FTA schedule.
Talk to a chartered accountant
Questions about your own situation? Reach us directly and we will reply with clear next steps.
This article is general information and not advice for your specific circumstances. Rules and thresholds change, so confirm the current position before you act.
