What is a VAT Return?

A VAT Return is the official document that must be completed by a Taxable Person and submitted to the Federal Tax Authority (FTA) at regular intervals. It details:

• Output tax due
• Input tax recoverable
• Any other required information

All VAT Returns must be submitted online through the FTA portal. The return may be submitted by the Taxable Person or an authorized representative such as a Tax Agent or Legal Representative.

VAT Return Filing Date in UAE

The VAT Return must be received by the FTA no later than the 28th day following the end of the Tax Period or by such other date as directed by the FTA.

If payment is due, it must also be received by the FTA by the same deadline.

Understanding Tax Liability

Tax Period

A Tax Period is the specific period for which VAT is calculated and paid.

• The standard Tax Period is three calendar months.
• The FTA may assign a different Tax Period (e.g., monthly filing).
• A Taxable Person may request a change in the Tax Period, subject to FTA approval.

Output Tax

Output tax is the VAT charged by a registered business on its sales of goods and services.

• It is calculated at the time of supply (tax point).
• It applies to standard-rated supplies and certain reverse charge transactions.
• It must be reported in the VAT Return for the relevant Tax Period.

Input Tax

Input tax is the VAT paid on business purchases and expenses.

A registered business may recover input tax if:

• A valid tax invoice is received and retained.
• The VAT amount has been paid or is intended to be paid.

Once eligible, input tax can be claimed in the relevant VAT Return.

Calculating VAT Liability

VAT liability is calculated as:

Output Tax – Input Tax = Net VAT Payable or Refundable

• If Output Tax exceeds Input Tax → Payment is due to the FTA.
• If Input Tax exceeds Output Tax → A VAT refund may be claimed.

Filing VAT Returns

Sales and Outputs Reporting

• Standard-rated supplies (per Emirate)
• Tourist tax refunds (if applicable)
• Reverse charge supplies received
• Zero-rated supplies
• Exempt supplies
• Imported goods declared through UAE Customs
• Adjustments related to imports

Purchases and Inputs Reporting

• Standard-rated purchases and expenses (recoverable VAT)
• Reverse charge supplies eligible for input tax recovery

The VAT charged and input tax recoverable are netted off to determine the Net VAT Position — either payable to or refundable from the FTA.

For new company VAT registration, visit VAT Registration UAE.