VAT Return Filing – Quick Steps to Turn the Process into Success
Value Added Tax is a recent initiative step taken by the GCC countries. As a new implementation on the businesses conducted in the UAE, the idea behind launching this was to bring out a new source of revenue to the government. Before elaborating the process of VAT return filing, let’s further explain the basics of VAT.
What is a Value Added Tax?
The VAT is basically a type of consumption tax which is imposed on the basis of the increase in the value of the product or service on the different stages of production or distribution. In this, the eventual tax is borne by the consumer. This method of taxation is utilized by more than 180 countries.
Hiring professional VAT consultants in Dubai not only helps in understanding the VAT registration process but also assists in VAT return filing. For all businesses operating in the UAE, here is a quick guide with certain steps to proceed with the VAT return filing –
1.Federal Tax Authorities (FTA) Portal Login:
The first step is to log in with the registered username & password on the FTA portal. After successful login into the account, click on the “VAT 201” from the navigation menu. After that, select the “VAT 201-New VAT Return” option to initiate the filing process.
2.Fill the Required Details
After initiating the filing process, enter the complete details of the taxable person like the Tax Registration Number (TRN), the name and address. However, businesses who are taking service from the best VAT consultancy firm in Dubai, the tax consultants will be required to fill the necessary details on the company’s behalf. Additionally, a Tax Agent Approval Number (TAAN) must also be provided along with the tax agency name & number.
3.Select the VAT Return Period
Carefully select the VAT return period. This is basically the duration for which you are filing VAT return & is essential to help business entities get necessary VAT related proceedings performed in that particular year.
4.Complete Details of Business Sales and Expenses (Output and Input):
Fill in the updated details of the sales and expenses made quarterly. Also details like zero-rated supplies, exempt supplies, etc. and VAT Expenses made at a rate of 5% need to be mentioned.
5.Provide Authorized Signatory Details
The final step is to provide the details for the authorized signatory and proceed towards the completion of the process. One can also save the entire details and submit them later. As a result, after the submission of the VAT return, you will proceed with the final step which is settling the payment on the Dashboard.
At the end, it’s essential to recognize although the process of VAT return filing is an easy one, it is essential to take utmost care of the necessary details. Best option to avoid mistakes and penalties is to have a consultation with an experienced VAT consultant, and then proceed ahead.