Webinar Guidance VAT Return

FirstBIT Accounting's customers report a 100% VAT return completion success rate

"By competently managing the transition to the new system, the First BIT team helped us promptly deal with an unfamiliar tax environment. The VAT return feature of FirstBIT Accounting fully complies with the Federal Tax Authority's guidelines. I'd like to especially note how convenient the system is. We have all the data at hand, can easily build reports, and save a lot of effort by automatic cost calculation"

Denis Yefimovich.

Director, Aster Aviation Services

"With the new VAT law in force, we just couldn't cope with all its implications by ourselves. We needed a really powerful accounting solution to manage all of our inventories and items. And we're glad to have found this in FirstBIT Accounting. The product runs smoothly and saves us precious time that we previously used to spend on tedious routine tasks. And, importantly, it supports UAE's new VAT legislation"

Victor Zashikhin

General Manager, Vivat International Trading LLC

"The FirstBIT Accounting solution allows us to keep accounts in line with the UAE local law while at the same time preparing financial statements according to international standards.
We were looking for a cloud Accounting solution with enhanced security features. FirstBIT Accounting's reliable access policy with flexible user rights and permissions prevents unauthorized access to data"

Alina Abdyldaeva

Accountant, Senat MEA Management Consultancy

"First BIT constantly improving and providing required VAT updates, which allows us to keep accounts in line with the UAE law and international standards.
Thanking to the timely display of information on accounts payable and receivable, the financial management has been greatly simplified.
As well, First BIT is providing a good and timely customer support"

Tulsidas Gawande

Middle East Branch Manager, Euroboor FZE

Request Free Trial of VAT Accounting Software

Penalties for failure to submit correct information in the VAT return

In situations where incorrect information is submitted in a VAT return, such as under-accounting the FTA or over-recovering input tax, the following penalties will apply:

AED 3,000 for the first error.

AED 5,000 for every following error.

- 5%, 30% or 50% Percentage-based penalty on the unpaid amount to the FTA due to the error. The percentage will be calculated based on whether or not the error was disclosed to the FTA.

Automated VAT Accounting and VAT Return Completion with FirstBIT Accounting:

08:00 - Fines & penalties for non-VAT compliance by FTA
20:35 - VAT Return Period
25:10 - VAT on Sales and all other Outputs
28:30 - VAT on Expenses and all other Inputs, Net VAT Due
30:11 - Standard Rated Supplies
36:51 - Supplies subject to the Reverse Charge Provision
38:24 - Zero-Rate Supplies
40:07 - Exempt Supplies
40:54 - Goods Imported to the UAE
43:25 - Bad Debts
46:21 - Analysis: Output VAT
47:46 - Standard Rated Expense
50:37 - Input VAT
51:53 - Standard Rated Expense
52:54 - Supplies Subject to Reverse Charge Provision
53:38 - Bad Debts
55:33 - Recoverable VAT
56:38 - Net VAT
57:10 - Submitting VAT Return in the FTA portal;
1:01:19 - One automation success story: preparing and submitting the VAT Return to FTA

Request Free Trial of VAT Accounting Software

Upon filing, on each return,
what information do I need to provide

Details of the taxable person
The value of exempt supplies made in the tax period
The value of taxable supplies subject to the standard rate of VAT in the tax period and the output tax charged, segregated per emirate
The value of reverse charged supplies received in the tax period
The value of taxable supplies subject to the zero-rate made in the tax period
The value of expenses incurred in the tax period where you seek to recover input tax, and the amount of the recoverable tax
The total value of tax due and recoverable tax for the tax period
The payable /repayable tax for the tax period

Process of filing VAT return

Step 1: VAT Return Form 201

To initiate and access the VAT Return, you should login to the FTA e-Services portal using your registered username and password. In order to begin completing your VAT Return, go to the "VAT" tab on the navigation bar and then go to 'VAT201 – VAT Returns' tab. From this screen, click on 'VAT201 – New VAT Return' to initiate the VAT Return form.

To learn more, click here.

Step 2: Taxable Person Details

Details of the Taxable Person will be pre-populated and your input is not required. If a Taxable Person has appointed a Tax Agency and a Tax Agent, their details will also appear accordingly. This includes information such as the "TRN" or "Tax Registration Number" for the Taxable Person, as well as their name and address. If you are a Tax Agent submitting the VAT return on behalf of a Taxable Person, you will also see your "TAAN" or "Tax Agent Approval Number" and your associated "TAN" or "Tax Agency Number", along with the Tax Agent and Tax Agency name populated at the top of the VAT Return. You will also be able to see your VAT Return submission due date here. Please check and ensure that all of this information is correct before going any further.

To learn more, click here.

Step 3: VAT Return Period

The form will automatically populate the 'VAT Return Period' for which you are currently filing for, the Tax Year end and VAT period reference number. The Tax Year end is important for businesses which are not able to recover all of their VAT and need to perform an input tax apportionment annual adjustment. This adjustment is due in the first tax period following the Tax Year end. The VAT return period reference number tells you which tax period you are completing within that tax year. So, if the VAT return period reference is 1, those affected businesses should include their input tax apportionment annual adjustment in this VAT return. Please note that this will only be required after the 1st year of VAT, i.e. from 1 January 2019 onwards. You'll also be able to see your VAT return submission due date here. Please check and ensure that all of this information is correct before going any further.

To learn more, click here.

Step 6: Net VAT Due

This section indicates your VAT payable for the VAT return period. Box number 12: Total Value of due tax for the period indicates the total value of output tax that is due for the Tax Period. This will be calculated based on the information declared in Sales and all other outputs. This will be the sum of the Output VAT and Adjustments columns in the Sales and all other outputs.

Similarly, box number 13: Total value of recoverable tax for the period indicates total value of Input Tax that is recoverable for the Tax Period. This will be calculated based on the details furnished in VAT expenses and all other inputs section. Indicated in Box 14 is Payable tax for the period. This will be the difference between the total tax due for the period and the total recoverable tax for the period. Either it will result in net VAT payable or recoverable tax.

If the amount in Box 12 is more than the amount in Box 13, the difference is the amount of VAT that you must pay. If the amount in Box 12 is less than the figure in Box 13, then you will be eligible to request a refund for the net amount of recoverable tax or carry it forward to the subsequent VAT return period.

To learn more, click here.

Step 8: Declaration & Authorized Signatory

In the above section, provide the authorized signatory details and tick the box next to the declaration section to submit the VAT Return. The taxpayer also has an option to save the details as a draft and submit it later.

Before submitting the VAT Return, the taxpayers have to take utmost care in verifying all the details and only when he or she is certain that all the information is correct, click the submit button. After the successful filing of the VAT Return, a taxpayer will receive an e-mail from FTA confirming the submission of VAT return form.

To learn more, click here.

FirstBIT Accounting helps you to complete
VAT returns and reporting in the UAE

Learn how a VAT-ready accounting software will help you comply with the UAE's VAT regulations.

Easy- to-use &
Affordable
Full-Cycle Accounting

Comprehensive financial and tax accounting in one system;
Advanced bookkeeping and payroll functions;
Automatic VAT calculation;
One-click reporting;
Complete audit and tax compliance.

Local software tailored and fully compliant with the UAE legislation

Local software development team
FirstBIT Accounting is designed with local users and the UAE legislation in mind;
UAE-based support and hotline
We're here in the UAE with SLA-based hotline support.
Support of UAE Tax and Labor regulations
Automatic updates of your database in full accordance with the latest changes in the UAE legislation, including new regulated report forms.

Phone

+971 04 439 6900

Address

Office 2202, Smart Height Tower, Barsha Heights, Dubai

Website

www.accounting-software.ae