The Complete Guide to VAT Return Submission in the UAE

In the UAE, the introduction of Value Added Tax (VAT) in 2018 brought about significant changes for businesses across various sectors. VAT has added a layer of complexity to accounting and tax filing, but the process has been simplified thanks to digital tools and helpful government systems. In this guide, we'll walk you through the essential steps for submitting your VAT return, highlight important deadlines, and show you how Qashio’s solutions can help you manage VAT with ease—whether you're tracking expenses, submitting returns, or paying your VAT liability.
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1. Determine Your VAT Filing Period

The first step in managing your VAT obligations is knowing how often you need to file your returns. In the UAE, businesses generally file VAT on either a monthly or quarterly basis, depending on your turnover:

• Monthly filers: If your business has an annual turnover of over AED 150 million, you must submit VAT returns every month.
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• Quarterly filers:  Businesses with a turnover under AED 150 million file their VAT returns every quarter.

Confirm your filing period on the Federal Tax Authority (FTA) portal, as this will determine when your returns are due.
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2. Gather Your Financial Data

Once you know your filing frequency, the next step is to get your financial records in order. To file a VAT return, you need to know exactly how much VAT you’ve collected from your customers (output tax) and how much VAT you’ve paid on business-related purchases (input tax). Here's what you need:

• Sales invoices: These show how much VAT you've charged your customers.
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• Purchase invoices: These show how much VAT you’ve paid on goods and services bought for your business.
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• Receipts for zero-rated or VAT-exempt transactions: Certain goods and services are either zero-rated or exempt from VAT, so make sure you have records of these.
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• Customs documents: If you’re importing goods, keep track of any VAT you’ve paid on imports.

Having accurate records from the start is crucial, as errors or missing data can lead to delays or fines.

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3. Complete the VAT Return Form

Once you've gathered all the relevant data, it’s time to fill out your VAT return form on the FTA eServices portal. This is where you’ll report both your output and input tax to calculate whether you owe VAT or are entitled to a refund. The key sections include:

• Total Sales and Output Tax: This includes the VAT collected from customers.
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• Total Purchases and Input Tax: This covers VAT paid on purchases and expenses.
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• Net VAT Payable or Refundable: This is the difference between your output tax (Sales VAT) and input tax Ppurchases VAT). If output tax exceeds input tax, you owe VAT; if input tax is higher, you may be eligible for a refund.

It's important to ensure that all your numbers are accurate, as mismatched numbers can risk to audits or penalties.
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4. Submit the VAT Return

After completing your return, submit it via the FTA portal before the deadline. Once your return is filed, you’ll receive a confirmation.

Key Deadlines:

• Quarterly VAT Returns: Due by the 28th day of the month following the end of the quarter (e.g., the first quarter (January-March) return is due by April 28).
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• Monthly VAT Returns: Due by the 28th day of the following month (e.g., the VAT return for July is due by August 28).

Missed deadlines can lead to penalties, which can range from AED 1,000 for the first late submission to AED 2,000 for subsequent delays. So, it's important to stay on top of these dates.
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5. Keep Records for Future Audits

Once your VAT return is filed, don’t forget to keep your records for at least five years. The FTA can audit businesses, and having accurate records will make any future audits or checks much easier to manage. Keep your sales and purchase invoices, receipts, and other related documents organised and easily accessible.
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How Qashio Helps with VAT Compliance

Managing VAT can be a time-consuming and complex task, but Qashio makes it easier for businesses to track their VAT obligations and ensure compliance. With Qashio, you can streamline your VAT process—from tracking purchases to filing returns and paying your VAT. Here’s how Qashio helps:

1. Track Purchases and Input Tax
   Qashio’s platform enables businesses to easily track their receipts and purchases and automatically extracts the VAT paid on each transaction.
   This helps ensure that all input tax is accurately recorded and can be offset against output tax when filing your return. All data can be exported or stored within Qashio to ensure you records are maintained.
   
   
2. Simplified Receipt Management
   One of the most tedious parts of VAT compliance is managing receipts and invoices. With Qashio, you can automatically upload receipts and invoices to the platform. This ensures that you always have all your VAT documentation in one place, reducing the risk of missing or misplaced receipts.
   
   
3. Seamless Integration
   Qashio’s platform integrates directly with your ERP Systems, making it easy to pull the necessary data when it's time to file your return. No need for manual data entry or cross-checking—Qashio makes it simple to submit accurate VAT returns.
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Earn Rewards on VAT Payments

One convenient way to settle your VAT obligations is by using a Qashio Visa card. Qashio provides businesses with a streamlined corporate card solution that integrates seamlessly into your financial workflows, and it can be used for VAT payments directly to the FTA. As an added bonus, businesses can earn rewards on all spending, including VAT Payments.

Here’s how Qashio Visa cards make VAT payment easier:

1. Instant Payments: Use the Qashio Visa card to make instant payments to the FTA directly from your business account.
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2. Record Keeping: Each payment made with the Qashio card is automatically recorded, helping you maintain accurate and up-to-date financial records for VAT reporting and audit purposes.
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3. Earn Rewards: All transactions through Qashio’s cards can earn you Qashio Points. These points can be converted to Emirates Skywards Miles, Shukran Points, or Cashback. Your VAT payment could be the reason for your next business class upgrade.

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If you’d like to learn more about how Qashio can support you file your VAT. Click here to speak to the team.

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