Business Setup & Formation
What Is VAT Return
A VAT return is an official report that must be submitted by every registered entity to the Federal Tax Authority (FTA) within the prescribed deadlines, showing output tax payable, input tax recoverable, and any other required details. Typically, VAT returns are filed quarterly, though some may be required monthly. All VAT returns must be submitted online through the FTA portal. If no taxable activity occurs during the period, the registered entity is still required to file a NIL return before the due date.
Penalty For Noncompliance
Penalties apply for failing to submit VAT returns or pay VAT on time:
Non-Submission of Return
AED 1,000 for the first delay.
AED 2,000 if repeated non-compliance occurs within 24 months.
Non-Payment of VAT
2% of the unpaid tax is charged immediately if payment is late.
An additional 1% daily penalty is applied on any remaining unpaid amount one month after the due date, up to a maximum of 300% of the tax due.
Riteway Assistance:
Our team of experienced professionals and VAT specialists helps businesses comply with all requirements set by the Federal Tax Authority (FTA). They continuously monitor updates and ensure that VAT returns are filed accurately and on time, guaranteeing smooth compliance with UAE tax laws and regulations.
