VAT: Filing Monthly Tax Returns
Marianne Besas | Feb 27, 2018
The UAE has done a stellar job of easing itself into the implementation of Value-Added Tax these early months of 2018. Now, it must help businesses navigate through the next part of the process: filing tax returns.
The first tax reporting period began this New Year, and is set to end tomorrow, on the 28th. The Federal Tax Authority (FTA) urges businesses to file their first VAT returns on the day or well before to avoid administrative penalties.
This won’t be a problem since the whole process can be completed online. However, this is bound to take some time, and double checking to make sure the data you put in is accurate will be crucial.
Any errors in filing your returns will result in penalties, starting from Dh3,000. In addition to this, there is a Dh10,000 fine for a first-time failure to maintain tax-related records. Here’s the list of records you’ll need to keep for reference:
- Records of all supplies and imports of your goods and services
- All tax invoices and tax credit notes
- Alternative documents that are related to receiving goods or services
- All tax invoices and tax credit notes
- Alternative documents issued
- Records of goods and services that have been disposed of or used for matters not related to business
Even if you do not have any business transactions to report, you still need to submit a “nil” VAT Return by the aforementioned due date.
