VAT return filing UAE is a mandatory process for all VAT-registered businesses in the UAE, requiring accurate reporting of taxable supplies, input tax, and liabilities to the Federal Tax Authority. Filing errors or delays can lead to hefty penalties. At ICB Tax and Consultancy, we ensure your VAT returns are filed correctly and on time, helping you stay compliant and financially protected.
VAT return filing UAE is the process through which VAT-registered businesses in the UAE report their taxable activities to the Federal Tax Authority (FTA). This includes disclosing VAT collected on sales, VAT paid on purchases, and calculating the net payable or refundable amount.
Returns are usually filed quarterly or monthly, depending on the FTA’s assignment, and must be submitted electronically via the FTA portal. The process requires accurate consolidation of financial data, invoices, and relevant VAT documents.
Engaging a professional ensures accuracy, avoids penalties, and helps businesses stay fully compliant with UAE VAT law.
Any business or individual registered for VAT in the UAE is legally required to file VAT returns with the Federal Tax Authority. This includes companies with taxable supplies exceeding the mandatory registration threshold of AED 375,000 annually.
SMEs, large enterprises, and businesses across sectors like retail, hospitality, and construction must file returns regularly. Voluntarily registered entities, those with turnover between AED 187,500 and AED 375,000, are also required to comply with VAT return filing UAE once registered. However, businesses dealing solely in exempt supplies may not be obligated to file.
We assist businesses in determining their VAT obligations and handle end-to-end registration with the Federal Tax Authority, ensuring a smooth and compliant onboarding process.
Proper documentation is key to VAT compliance. We help you maintain accurate and organized records of all VAT-related transactions for easy reference and audit readiness.
Our experts analyze your financial data, identify eligible input and output VAT, and prepare your returns with precision, reducing the risk of misreporting.
We take responsibility for submitting your VAT returns on time via the FTA portal, helping you avoid delays, errors, and penalties.
If your business is selected for a VAT audit, we provide comprehensive support, including organizing documentation, responding to FTA queries, and ensuring your interests are protected.
From regulatory changes to compliance best practices, we keep you informed and supported, so you’re always one step ahead in VAT management.
Use your registered username and password to access the FTA platform.
Go to the VAT tab and select “VAT201 – New VAT Return” to start your filing process.
Ensure your TRN, legal name, and return period are correct. These are usually pre-filled but must be double-checked.
This step involves entering key transaction details:
VAT on Sales and Outputs: Report taxable sales per Emirate under the “Amount (AED)” column and declare VAT collected under “VAT Amount (AED)”.
Adjustments: If applicable, use the “Adjustment (AED)” column to declare corrections such as bad debt relief or real estate adjustments.
Input VAT on Expenses: Report eligible expenses under “Amount (AED)” and the corresponding recoverable VAT under “Recoverable VAT Amount (AED)”.
Reverse Charge Supplies: Include transactions where VAT is due under the reverse charge mechanism (foreign services, imports, etc.).
Imported Goods: Confirm the customs data pre-populated by the system and make adjustments, if needed.
Total Calculations: The system automatically summarizes total output VAT and total recoverable input VAT.
Click “Save as Draft” to avoid data loss and thoroughly review all entries for accuracy.
Complete all mandatory fields, tick the declaration checkbox, and click “Submit.” You will receive a confirmation email from the FTA.
Go to the “My Payment” tab to view and settle the amount due using the available payment options.
If input VAT exceeds output VAT, select “Yes” to initiate a refund request and complete Form VAT311.
Always store a copy of the return, payment receipts, and supporting documents for compliance and future audits.
A failure in VAT return filing UAE accurately and on time can lead to strict penalties from the UAE’s Federal Tax Authority (FTA). Businesses must understand both the financial consequences of non-compliance and the deadlines to avoid them.
| Month of License Issuance | Offense | Penalty Amount/Details |
|---|---|---|
| Late Filing of VAT Returns | First-time offense | AED 1,000 |
| Repeat offense (within 24 months) | AED 2,000 | |
| Incorrect VAT Return Submissions | First-time offense | AED 1,000 |
| Repeat offense (within 24 months) | AED 2,000 | |
| Late Payment of VAT | Immediate Penalty | 2% of the unpaid tax |
| Monthly Penalty | 4% of the unpaid tax, up to a maximum of 300% |
VAT returns must be submitted within 28 days from the end of each tax period. Tax periods are assigned by the FTA and may be monthly or quarterly, depending on the business’s annual turnover.
Note: The FTA may assign specific tax periods based on a business's activities or structure.
Delays in filing VAT returns can lead to penalties starting from AED 1,000 for the first offense and AED 2,000 for repeat violations.
Solution: Set calendar reminders, use accounting tools with alerts, or partner with a VAT consultant like ICB to stay compliant.
Applying the wrong VAT rate or misclassifying supplies (standard, zero-rated, or exempt) can result in overpayment, underpayment, or fines.
Solution: Use VAT-compliant accounting software, train your team regularly, and cross-check rates via the FTA website.
Common errors include incorrect TRNs, wrong values, or missing data, which may trigger audits or rejections.
Solution: Review all entries before submission and adopt a checklist-based filing process to catch errors early.
Poor record-keeping can affect audits and refund claims. UAE law mandates storing VAT records for at least 5 years.
Solution: Use digital tools for invoice management and maintain a central, well-organized VAT archive.
Businesses exceeding AED 375,000 in taxable turnover must register. Failing to do so can result in penalties and missed input tax claims.
Solution: Monitor turnover regularly and seek expert help to choose the right registration path (mandatory or voluntary).
Claiming VAT on non-eligible expenses or without proper invoices may lead to penalties during audits.
Solution: Keep valid tax invoices, understand FTA’s eligible expense criteria, and train procurement and finance teams.
Invoices missing key details like TRN, VAT rate, or supply date can result in compliance issues.
Solution: Use automated invoicing systems that follow FTA standards and train your staff on invoice accuracy.
VAT regulations in the UAE are subject to periodic changes. Not staying informed may lead to non-compliance.
Solution: Subscribe to FTA alerts and schedule regular staff training on rule updates.
If you identify a past mistake and fail to report it, the penalties can increase sharply during audits.
Solution: File a voluntary disclosure (Form VAT211) early to reduce potential penalties by up to 90%.
Our team is well-versed in the ever-evolving VAT laws and FTA mandates, ensuring accurate compliance every time.
From registration to return filing and audit support, we handle the full VAT lifecycle so you don’t have to worry about missing a single detail.
Whether you're an SME or a large enterprise, we provide personalized VAT strategies aligned with your operational needs and industry.
Avoid penalties and delays with our meticulous review processes, deadline tracking systems, and automated filing tools.
You’ll always have a single point of contact who understands your business and keeps you informed at every step.
We monitor every FTA update so you stay ahead. Expect timely alerts, adaptive strategies, and compliance insights before the law changes impact your business.
Our growing portfolio includes businesses in retail, construction, trading, healthcare, and more, all relying on ICB to keep their VAT obligations in check.
Some frequently asked questions here.
All businesses registered under VAT in the UAE must file VAT returns, either on a monthly or quarterly basis, depending on their annual turnover. This includes companies with mandatory registration (turnover exceeding AED 375,000) and those who opt for voluntary registration (turnover between AED 187,500 and AED 375,000).
