Under UAE tax law, all VAT-registered businesses must file VAT returns within specific deadlines. This is not just a formality; it is a legal requirement that ensures compliance with the Federal Tax Authority (FTA).

Whether you are filing your VAT returns monthly or quarterly, it is essential to understand the process, including logging in to the FTA portal, making payments, and applying for refunds.

In this guide, we will explain the entire process of VAT filing, submission, and refund claims in the UAE, so your business can stay compliant and penalty-free.

Need help with VAT return filing in the UAE? Contact Fincsol Accountancy today and let our team make the process simple for you.

30 Seconds Summary

• All VAT-registered businesses in the UAE are required to file VAT returns through the FTA’s EMARATAX portal, either monthly or quarterly, depending on their turnover.
• Filing for VAT requires accurate records of sales, purchases, and VAT calculations, which are submitted via the VAT 201 form.
• Missing deadlines, making errors in VAT classification, or keeping poor records can result in penalties or audits by the FTA.

What Is a VAT Return in the UAE?

A VAT return in the UAE is a formal report that every VAT-registered business must submit to the Federal Tax Authority (FTA) at the end of each tax period. This report summarizes all sales, purchases, and other taxable activities carried out during that period.

The main purpose of filing a value-added tax return is to show:

• How much VAT your business collected on sales (output VAT)
• How much VAT you paid on purchases and expenses (input VAT)
• Adjustments related to imports, exports, exempt or zero-rated supplies, and reverse charge transactions

This calculation helps determine your business’s final VAT position with the FTA:

• If output VAT is more than input VAT, you must pay the balance to the government.
• If input VAT exceeds output VAT, you can either request a VAT tax refund or carry the balance forward to the next tax period.

In the UAE, VAT tax filings are made using Form VAT201 through the FTA’s online portal, EMARATAX. Depending on the company’s turnover, filing is required either monthly or quarterly.

The VAT201 form itself is divided into key sections that capture VAT activity:

• VAT on Sales (Outputs): Details of VAT charged on taxable supplies made to customers.
• VAT on Purchases (Inputs): VAT paid to suppliers on taxable goods and services.
• Net VAT Due: The difference between VAT collected and VAT paid.

Filing this return is not only a legal requirement, but it is also necessary for businesses to remain compliant, avoid penalties, and manage their cash flow effectively.

Are you unsure if your VAT submission is correct? Fincsol Accountancy can review and file your return to help you avoid penalties.

Who Should File a Value Added Tax Return in the UAE?

Not every business in the UAE is required to submit a VAT return. It depends on whether your business is registered with the Federal Tax Authority (FTA).

Mandatory Registration (AED 375,000+):

If your annual taxable turnover exceeds AED 375,000, your business is required to register for VAT. Once registered, you are legally required to complete VAT return filing for each tax period set by the FTA.

Voluntary Registration (AED 187,500 – 375,000):

Businesses with annual taxable supplies or expenses above AED 187,500 can register voluntarily. If you choose this option, you must still adhere to the same VAT filing rules.

Zero Sales Rule:

Even if your business has no sales or purchases in a tax period, as long as your Tax Registration Number (TRN) is active, you must log in to the FTA portal and complete the VAT return login process.

Exempt or Unregistered Businesses:

Companies that only supply exempt goods or remain below the voluntary registration threshold do not need to register. As a result, they are not required to submit a value-added tax return.

What Are the Deadlines for VAT Return Filing?

Every business must file its VAT returns on time. The Federal Tax Authority (FTA) decides the filing period for each business, which can be either quarterly or monthly, depending on the yearly sales of your company.

Quarterly VAT Filing

If your yearly sales are less than AED 150 million, you will usually file every three months:

• Q1 (Jan–Mar): File by April 28
• Q2 (Apr–Jun): File by July 28
• Q3 (Jul–Sep): File by October 28
• Q4 (Oct–Dec): File by January 28 of the next year

Monthly Filing

If your yearly sales exceed AED 150 million, you are required to file monthly. The VAT submission deadline in this case is the 28th day of the following month.

For example, the VAT return for May must be filed by June 28.

Sometimes the FTA assigns a business a different tax period. This depends on the company’s size, type of work, or past filing history. You can always check your EMARATAX account to see your exact filing schedule.

Need assistance with VAT filing in the UAE? Fincsol Accountancy is here to guide you step by step.

What Details Are Needed to File the VAT 201 Return Form?

In the UAE, all VAT submissions must be made through the EMARATAX portal. Since paper submission is not an option, all details must be entered directly into the portal.

VAT 201 is the standard return form, which has the following seven sections:

• Taxpayer Details
• VAT Return Period
• VAT on Sales and Outputs
• VAT on Expenses and Inputs
• Net VAT Due
• Additional Reporting Requirements
• Declaration and Authorised Signatory

Step-by-Step Process of VAT Filing

Here is a simple step-by-step process that businesses can follow for their VAT return filings:

Step 1: Prepare Your Records

Before you log in, ensure that all sales, purchases, and expenses are properly recorded. Have tax invoices, receipts, credit notes, and import/export documents ready. These records will help you calculate your VAT correctly and avoid mistakes.

Step 2: Log in to the EMARATAX Portal

Go to the Federal Tax Authority’s EMARATAX portal.

Sign in using your registered username and password.

Once logged in, the dashboard will show pending returns or any VAT liabilities.

Step 3: Select the VAT Return Period

Navigate to: VAT → My Filings → View All → File for the correct tax period.

Check the filing period carefully to ensure you are submitting for the right month or quarter.

Step 4: Review Instructions and Start Filing

Review instructions and tick the checkbox to confirm you have read the filing guidelines.

Click "Start" to begin filling out your VAT return.

Step 5: Enter or Upload Data

You have two options:

• Manual Entry: Enter sales, purchases, and VAT details directly into the form.
• Excel Upload: Download the official template, fill in the data offline, and upload it back to the portal.

Step 6: Fill in Output VAT (Sales and Supplies)

• Box 1: Standard-rated sales, broken down by emirate.
• Box 2: Tourist VAT refunds (auto-filled from the Planet Tax Free system).
• Box 3: Sales under reverse charge.
• Box 4 & 5: Zero-rated sales and exempt sales.
• Box 6 & 7: Imports reported from Customs (auto-filled). If details are missing or wrong, you can adjust them in Box 7.
• Box 8: Shows the total of all sales and VAT liabilities (Boxes 1–7).

Step 7: Fill in Input VAT (Expenses and Purchases)

• Box 9: Standard-rated expenses and VAT amounts you want to claim.
• Box 10: Reverse charge purchases (e.g., certain services or imports).
• Box 11: Total input VAT (sum of Box 9 and Box 10).

Step 8: Calculate VAT Payable or Refundable

• Box 12 & 13: Total output VAT vs. input VAT.
• Box 14: Shows whether you need to pay VAT to the FTA or if you are due a refund.

Step 9: Apply Profit Margin Scheme (if applicable)

If your business uses the Profit Margin Scheme, select Yes; otherwise, select No. Save your work as a draft before proceeding.

Step 10: Review and Verify All Information

Compare figures with accounting records.

Double-check input VAT claims against supplier invoices.

Ensure zero-rated and exempt supplies are treated correctly.

Check reverse charge transactions carefully.

Expand each section in the portal to ensure no details are missed.

Step 11: Submit the VAT Return

Scroll down to the declaration section.

Tick the box to confirm all details are correct.

Click Submit.

A confirmation screen will appear with a reference number; note this for your records.

Step 12: Pay VAT (if applicable)

Payment can be made through:

• E-Dirham card
• Credit card
• Bank transfer using GIBAN (Generated IBAN by the FTA)

If you don’t owe VAT, you must still file a return showing “zero VAT payable.”

Step 13: Keep Records for Compliance

After filing, save a copy of your VAT return acknowledgement and payment receipt. All VAT records, invoices, and documents must be kept for at least five years, as the FTA may request them for an audit at any time.

Want to file for VAT stress-free? Reach out to Fincsol Accountancy and let us handle the paperwork for you.

Common Mistakes to Avoid When Filing for VAT

When filing for VAT, here are some common mistakes that you should avoid, as these can lead to fines, penalties, or even audits from the FTA:

• Filing late
• Mistakes in the classification of sales (e.g., mixing up standard-rated, zero-rated, or exempt supplies)
• Claiming VAT incorrectly
• Not reporting reverse charge transactions
• Poor record-keeping

Avoiding these errors is essential for staying compliant, maintaining a clean tax history, and upholding good standing with the FTA. Always double-check your return before submitting and keep all documents safe for future review.

FAQs

Q: Who needs to file VAT returns in the UAE?

A: Any business registered for VAT with a valid Tax Registration Number (TRN) must file VAT returns. This applies even if no sales or purchases were made during the tax period.

Q: What is the deadline for filing VAT returns in the UAE?

A: VAT returns must be submitted within 28 days after the end of the tax period. The tax period can be either monthly or quarterly, depending on the business.

Q: Can VAT returns be submitted offline in the UAE?

A: No, VAT returns cannot be submitted offline. All VAT returns must be made through the Federal Tax Authority’s EMARATAX portal.

Q: What happens if VAT returns are filed late in the UAE?

A: If VAT returns are filed late, it can lead to penalties, which may include a fixed fine for missing the deadline and additional daily charges if VAT payments are also delayed.

Q: What records should businesses keep after filing VAT returns?

A: After filing VAT returns, businesses should keep VAT records such as invoices, receipts, filed returns, and tax calculations for at least five years, as they may be required for FTA checks or audits.

Over to You

Filing a VAT return is a requirement for businesses that must be done accurately, with proper documentation, and on time. Missing deadlines or making mistakes can result in penalties from the FTA.

Need help with VAT submission or VAT tax filing in the UAE? Contact Fincsol Accountancy today; we are here to guide you through every step.