VAT Return Filing in the UAE
It is an important mechanism for the successful of VAT system, In fact it works as a medium for reporting VAT collected and Paid to the revenue authorities. VAT return filing in the UAE is a recognized way of reporting the input and output VAT during a specified period. VAT return is prepared on the basis of the documents available in the system of a company; VAT returns also form a strong basis for Auditing and any other business related activities.
While filing VAT return in the UAE needs a summary of the information i.e. VAT on sales, purchases & expenses. When you submit the VAT on the portal the figures are not just the consolidation of Comprehensive Sale or purchase and thus resulting in VAT.
VAT filing in the UAE is not an easy thing; In fact it requires proper treatment of business transactions subject to VAT. For example a Standard rated sale , zero rated sale , exempt sale everything should be categorized and should be booked according to the FTA law.
It is very difficult for a business to combine voluntarily and gather transactions to file a VAT return. In such case, the business always has a risk of losing output or input VAT reporting, which will lead to non-compliance.
Why you should have a VAT Consultant in the UAE
Managing VAT in the UAE can be a complex thing as errors or any other types of inconsistency can lead to fines and penalties. The tax payer should fully aware of the tax period and other FTA requirements and rules while booking or filing VAT return quarterly. So to be on the safe side and for wellbeing of the company it is good to appoint a VAT consultant or a Tax Agent in the UAE.