Demos 
Colors 
Docs 
Support 
1. What Is a VAT Return?
A VAT return is a summary of all your taxable business activities for a given tax period. It includes:
VAT collected on sales (Output VAT)
VAT paid on purchases (Input VAT)
Adjustments, exemptions, and zero-rated supplies
The VAT return determines whether your business must:
Pay VAT to the FTA, or
Receive a VAT refund if your input VAT exceeds output VAT.
2. Who Must File VAT Returns in the UAE?
Any business registered for VAT (with a mandatory threshold of AED 375,000 and an optional threshold of AED 187,500) must file VAT returns regularly.
This applies to:
Mainland companies
Free zone entities
E-commerce businesses
Service providers
Importers/exporters
If your business is VAT-registered, filing returns is mandatory, even if you had zero sales during the period.
3. VAT Filing Frequency
The standard VAT return period in the UAE is:
Quarterly for SMEs
Monthly for larger businesses or those assigned by the FTA
Your tax period is specified in your Tax Registration Certificate (TRC).
4. VAT Return Filing Deadline
VAT returns must be filed no later than the 28th day following the end of the tax period.
Example:
If your tax period ends on 31 March, you must file and pay VAT by 28 April.
Late submissions result in penalties, so timely filing is essential.
5. How to File VAT Returns in the UAE (Step-by-Step)
Step 1: Login to the FTA Portal
Visit the Federal Tax Authority website and log in using your UAE Pass or registered credentials.
Step 2: Prepare VAT Data
You must gather:
Total sales & purchases
Output & input VAT
Zero-rated and exempt supplies
Imported goods/services
Credit notes and adjustments
Use VAT-compliant software to avoid errors.
Step 3: Fill Out Form VAT201
The return requires:
Sales and output VAT
Expenses and input VAT
Reverse charge mechanisms
Adjustments and corrections
Step 4: Review & Submit
Double-check all data to avoid penalties for errors.
Step 5: Make Payment
You can pay via:
e-Dirham
Bank transfer
GIBAN
Credit/debit cards
Once payment is received, your return is officially complete.
6. VAT Penalties in the UAE
The UAE has strict penalties for:
Late Filing
AED 1,000 for the first late filing
AED 2,000 for subsequent late filings within 24 months
Late Payment
2% on unpaid tax immediately
4% after 7 days
1% per day (up to 300%)
Incorrect Filing
Penalties range from AED 500 to AED 20,000 depending on the severity.
Conclusion
VAT return filing is a critical responsibility for all VAT-registered businesses in the UAE. With accurate bookkeeping, a proper understanding of VAT rules, and timely submission, your business can stay fully compliant and avoid costly penalties.
