The UAE government has confirmed that from January 1, 2018. The residents and visitors to the UAE will be liable to Value Added Tax (VAT). Once the VAT implements, all the returns should be submitted on a regular basis. The duration for filing a VAT return is likely to be three months. The registered businesses can file their VAT returns through the online portal of the Federal Tax Authority (FTA).
WHAT IS VAT RETURN AND WHY IS IT IMPORTANT
The VAT return is the formal document or statement of the VAT liability of a taxpayer for a particular tax period. It contains the details of VAT liability of the person, tax paid by him, etc. for a tax month or quarter.
The tax returns contains the records of the tax paid by the users in the time period. It is a formal document that can be used as a proof that certain party has paid their Tax. The government needs the records to maintain a proper taxation system and is used by the tax authorities for performing auditing and other activities as per the UAE tax laws.
The VAT return contains the summary of total earning and the tax paid on that earnings for the particular period of time.
WHEN AND HOW SHOULD VAT RETURNS BE FILED
Each eligible individual and business will be required to register on the portal and file their tax returns as per the schedule. The duration for filing a VAT return is likely to be three months. The registered businesses can file their VAT returns through the online portal of the Federal Tax Authority (FTA).
It is important to file VAT returns on time in order to keep good accounts with the authorities and to run a business properly. A VAT registered firm should file regular tax returns, even if the Company have not done any business or paid tax in a given period.
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