Business
Like

VAT Returns: Businesses encouraged to file returns and make payments on time

July 1, 2018
54 Views
0 Comments
3 minutes read
VAT Returns: Businesses encouraged to file returns and make payments on time

As businesses across the UAE gear up to file Value Added Tax (VAT) returns on June 28th 2018, Al Dhaheri Jones & Clark (ADJC) provides clarity on process and the importance of filing returns.

A VAT return is the formal statement of a registered entity’s VAT statement together with its supporting documentation and VAT payment for a specified tax period. These VAT returns are important as they contain the records of the tax paid by the users in a given period. It is a formal document that provides proof that the registered party has paid their VAT obligation.

“Filing returns on time is crucial for your business. A delay can not only cause a huge amount of stress, but your entire business could be under threat should you fail to comply. While non-compliance can lead to penalties, it also results in backdated payments, investigation by the authority and black-listing. As such, knowing the procedure and deadlines for filing and payment of VAT returns is significantly important to lower the chances of incurring VAT fines and penalties in the UAE,” said Mohammed Fathy, General Manager of Al Dhaheri Jones & Clark.

In the UAE, the administrative penalty for late registration is Dhs20,000 ($5,445). Other fines include Dhs15,000 ($4,084) for failing to display prices inclusive of VAT, Dhs3,000 ($817) for a first incorrect tax filing and Dhs5,000 ($1,361) for incorrect filings thereafter. Failure to submit a deregistration application will result in a fine of Dhs10,000 ($2,723). A first time tax offence will result in a Dhs1,000 ($272) fine and repeat offences within two years Dhs2,000 ($545).

“The Federal Tax Authority (FTA) in the UAE has given businesses enough time to comprehend and follow the legislative rules to file returns. While most businesses are now ready to file returns on time, we suggest that it is best to file returns and make payments before the deadline to ensure that the payments processed through banks reaches FTA on time,” added Mohammed Fathy.

ADJC has recorded a significant growth in the last one month as the date to file VAT returns approaches quickly, and the company is optimistic that the number is set to increase as the filing date gets closer.

In the UAE, the VAT returns are to be filed monthly or quarterly based on set conditions such as the type and size of the business. Each registered VAT entity is required to file their tax returns via the Federal Tax Authority portal as per the schedule.

Editor_wr

3384 posts
0 comments
Do NOT follow this link or you will be banned from the site!