How to file return under UAE VAT

Image result for uae vatAs per the official site of Ministry of Finance, UAE, majority of the business entities will be required to file the VAT returns on quarterly basis, within one month/28 days from the end of the respective quarter.

USE OF ACCOUNTING SOFTWARE

The business in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file.

UPLOAD RETURN

On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form.

After generating the VAT return file, you need to login to the FTA’s e-tax portal using the credentials. Using the e-tax portal upload option, you need to browse and select your return file.

VAT RETURN FORMAT     

The VAT return file should be in XML or MS Excel format.

Auto Fill VAT Return Details.

Once the file is uploaded, you need to click ‘Auto Fill VAT Return’ which will auto-populate the details from the VAT return file to the VAT return form in the FTA’s e-tax portal.

VALIDATE OR AUTHENTICATE

Once this button is clicked, the FTA portal will validate or authenticate whether the uploaded file has been created by a certified tax accounting software. If the file is authenticated, only then the details will be auto-populated into the VAT return form. If the file is not authenticated, it will be rejected and an appropriate error message will be displayed.

Once the VAT return file is authenticated, you are required to fill the other details required by FTA and submit.

CORRECTION IN RETURN

Correction of errors made in previous return period can be carried out. The taxable person must disclose this error to the FTA within 30 days of becoming aware of this error and include in the  Tax Return to be submitted immediately after noticing and correcting the error.

PENALTY FOR LATE FILLING OF VAT RETURNS

Late filing of return may attract penalty. The administrative penalty will not be less than 500 Dirhams but not exceeding three times the amount of tax in respect of which the administrative penalty was levied.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at https://carajput.com/blog/For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

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How to file return under UAE VAT

Image result for uae vat return format

As per the official site of Ministry of Finance, UAE, majority of the business entities will be required to file the VAT returns on quarterly basis, within one month/28 days from the end of the respective quarter.

USE OF ACCOUNTING SOFTWARE

The business in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file.

UPLOAD RETURN

On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form.

After generating the VAT return file, you need to login to the FTA’s e-tax portal using the credentials. Using the e-tax portal upload option, you need to browse and select your return file.

VAT RETURN FORMAT     

The VAT return file should be in XML or MS Excel format.

Auto Fill VAT Return Details.

Once the file is uploaded, you need to click ‘Auto Fill VAT Return’ which will auto-populate the details from the VAT return file to the VAT return form in the FTA’s e-tax portal.

VALIDATE OR AUTHENTICATE

Once this button is clicked, the FTA portal will validate or authenticate whether the uploaded file has been created by a certified tax accounting software. If the file is authenticated, only then the details will be auto-populated into the VAT return form. If the file is not authenticated, it will be rejected and an appropriate error message will be displayed.

Once the VAT return file is authenticated, you are required to fill the other details required by FTA and submit.

CORRECTION IN RETURN

Correction of errors made in previous return period can be carried out. The taxable person must disclose this error to the FTA within 30 days of becoming aware of this error and include in the  Tax Return to be submitted immediately after noticing and correcting the error.

PENALTY FOR LATE FILLING OF VAT RETURNS

Late filing of return may attract penalty. The administrative penalty will not be less than 500 Dirhams but not exceeding three times the amount of tax in respect of which the administrative penalty was levied.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at https://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

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DON’T WORRY, CONTACT US FOR TOTAL GST RETURN SOLUTION

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Not able to file your GST Return – Don’t worry, contact us for total GST Return solution- file your GSTR-1 now with a per day penalty of Rs 50/-.

GST RETURNS

Owing to the issues with GSTR online portal and much to the relief of tax payers, the due date for filing of FORM GSTR-1 has been extended videNotification No. 71/2017-Central Tax and 72/2017-Central Tax dated 29thDecember 2017. The previously announced due date of 31st December 2017 has been extended to 10th January 2018. The relief has been provided to assessees with aggregate turnover upto 1.5 crore as well as those with aggregate turnover over 1.5 crore.

For assessees with aggregate turnover upto 1.5 crore, the period for which extension has been granted is July to September 2017. There is no modification in due dates for the quarter of October to December 2017 and January to March 2018. On similar lines, extension for assessees with aggregate turnover exceeding 1.5 crore is for the period July to October 2017 and no changes have been provided in due dates of subsequent months. Revised due dates for furnishing FORM GSTR-1 is summarized below-

If you have not been able file GSTR-1 for some problem or other please contact us for immediate solution. You can file your GSTR-1 now with a per day penalty of Rs 50/-.Our panel of Technical expert are able to resolve all the error in your return.

Due date for GSTR-1 for turnover uptoRs 1.5 cr

Period (Quarterly)Due dates

  1. no       Months involved Due Date for filing GSTR-1
  2. July – September 2017           10th January 2018
  3. October – November 2017     15th February 2018
  4. January – March 2018           30th April 2018

Due date for GSTR-1 for more than Rs 1.5 cr

  1. No.      Months involved      Due Date for filing GSTR-1
  2. July – November 2017     10th January 2018
  3. December 2017       10th February 2018
  4. January 2018           10th March 2018
  5. February 2018         10th April 2018
  6. March 2018           10th May 2018

GSTR-2  and GSTR-3 . GSTR-2 and  GSTR-3 have been putt off till Mach 2018 . GSTR-6 which is required to be filed monthly by ISD (Input Service Distributes) is open now the govtportal . Last date for GSTR-6 for July is also 31st December.

Others GSTR filing extensions

Return Revised Due Date Old Due Date
GSTR-5 (for Non Resident) 31st Jan 2018 11th Dec 2017
GSTR-5A(By person supplying OIDAR) 31st Jan 2018 15th Dec 2017
GSTR-4 (for Composition Dealers) 24th Dec 2017 18th October 2017
GSTR-6 (for Input Service Distributor) 31st Dec 2017 13th August 2017

All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.

Details of inputs or capital goods sent and received back from the job worker need to be furnished by the taxpayers on a quarterly basis in Form GST ITC-04. For preparing and uploading of this statement, an excel offline tool has been made available on GST Portal. GST Council Recommends Extension ST ITC-04 (Details of goods/ capital goods sent to job worker and received back) for the quarter July 2017 to Sept. 2017 Unto 31 Dec. 2017. 

GSTR-3B Return

GSTR-3B return will have to be filed by all taxpayers in addition to GSTR-1, GSTR-2 and GSTR-3 return.Earlier, GSTR-3B returns were to be filed for the month of July to December 2017.

 IN 23rd council meeting, it has been announced that GSTR-3B return must be filed for all months from July 2017 to March 2018. The due date for GSTR-3B return will be the 20th of every month. 

Late fees for GSTR-3B of July, Aug. and Sept waived. Any late fees paid for these months will be credited back in electronic cash ledger under Tax and can be utilized to make GST payments

 Reduction of GST Return Penalty

In addition to the waiver of GST Return Penalty, the Government has also announced a reduction in GST return penalty for NIL GST returns. From October 2017, the GST return penalty for not filing NIL GST return has been reduced to Rs.20 per day instead of Rs. 200 per day. 

GST on Advances Received

In 22nd GST Council, it has now been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores will not be required to pay GST at the time of receipt of advances on account of supply of goods.

E-Way Bill

As per E-Way bill rules, any transportation of goods with a value of more than Rs.50, 000 would require an e-way bill. The GST council in earlier meeting in October had decided that E-way bill would be introduced in staggered manner from January 1 and subsequently nationwide from April1.

In the recent 24th GST council meeting was finally decided that the e-way bill is now introduced and will be applicable from 1st February 2018 across the nation. The nationwide e-way bill system will be ready to be rolled out on trail basis latest by 16 January 2018. Trade and transporters can start using thi system on voluntary basis from 16 January 2018.

GST REGISTRATION

Registration under GST was mandatory for entities undertaking inter-state supply of goods and/or services, irrespective of aggregate annual turnover.In the 22nd GST Council, it has been decided to exempt service providers from this condition. Hence, service providers will now be allowed to undertake inter-state sales of upto Rs.20 lakhs without obtaining GST registration.Further, this is exemption is also available for service providers supplying services through an e-commerce operator.

But person supply goods will still be required to obtain GST registration mandatorily (in case of inter -state supply)

 GST COMPOSITION SCHEME

This scheme is intended for small businesses where compliance less.22nd GST Council has decided to increase the aggregate turnover to Rs.1 crore. (The aggregate turnover threshold for special category States, has also been   increased to Rs. 75 lacs from Rs. 50 lacs excepts J&K and Uttarakhand)

Person opting for composition scheme was restricted from providing any exempted/taxable service .but now a composite can provide exempted service also. 

In 23rd GSTcouncil meeting the due date for enrolling under the increased threshold has been made available to both migrated and new taxpayers up to 31.03.2018.

The GST rate payable by GST Composition dealers has been harmonized for all taxpayers (traders or manufactures) at 1%. However, not change has been announced on the GST rate for composition scheme for restaurants.

GSTR 4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of month following respective quarter. But in 23 council meeting composition returns, GSTR-4 due date extended to 24 /December/2017 for July-September quarter

Reverse Charge Mechanism

Registered taxpayers were required to pay GST on reverse charge basis when they purchased from an unregistered person, the 22ndGST Council has decided to suspend the reverse charge mechanism till 31.03.2018. Now, registered taxpayers can purchase from unregistered persons without having to pay GST on reverse charge basis.

TDS and TCS Provisions Postponed

The Government has decided to postpone the TDS/TCS registration and operationalization to 31st March 2018.

Email us on info@carajput.com or vist on www.carajput.comfor guaranteed GSTR filing solution. List of services we offer and charges involved in it.
1. Return filing assistance for Return GSTR 3B – Rs. 3000/- for monthly.

2. Return filing assistance including invoice upload from xls up to 200 inv /month
(a) Rs. 5000/- (3 monthly pack)
(b) Rs. 18000/- (Annual Pack)
(c) Rs. 3000/- (Monthly Pack)
3. Return filing assistance including invoice upload from xls from 201 to 500 inv /month
(a) Rs. 8000/- (3 Monthly Pack)
(b) Rs. 25,000/- (Annual Pack)
(c) Rs. 5000/- (Monthly Pack)

 

4. Return filing assistance including invoice upload from xls from 501 + per month –
(a) Rs. 30,000/- (3 Monthly Pack)
(b) Rs. 50,000/- (Annual Pack)
(c) Rs. 10,000/- (Monthly Pack)

5.GSTR 4 – Rs15000/- (Yearly pack)
6.GSTR 6 – Rs. 15000/- (Yearly pack)
7.ITC-04 – Rs. 15000/- (Yearly pack)
8. One-time assistance- Rs.5,000/-

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

 

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VALUE ADDED TAX IN UAE

Image result for VAT IN UAE

REGISTRATION

All the businesses who have a place of residence in the state of UAE and whose value of supplies in the member states in previous 12 months has exceeded AED 375,000 should mandatorily register under UAE VAT. Also, if the businesses anticipate that the total value of supplies will exceed the mandatory registration threshold of AED 375,000 in the next 30 days, then they too will have to register under UAE VAT.

Those businesses, who do not have a place of residence in the state of UAE, will have to compulsorily register under VAT irrespective of the registration threshold.

Tax Registration Number

Each person who has registered for VAT, a unique number is issued by the authority known as Tax Registration Number. In short, it is called as TRN.

Taxable person under GCC VAT Agreement

Taxable Person means any person who is conducting an economic activity for the purpose of generating Income.
• Such person is registered or obliged to register for VAT as per the registration          threshold in a member state.
•Taxable person can include businesses located outside the GCC territory.
• Taxable person can be any individual person conducting an economic activity.

TAX group/vat group

VAT also has a provision for group registration, in which multiple entities of the same business or multiple companies under the same management/control can apply for tax group registration, given that they have a valid proof of relationship between said entities. The management must choose a representative member (main company) in order to register as a VAT group.

Tax grouping is a long-term decision and hence needs to be properly evaluated by doing impact analysis. Tax grouping can be done for UAE companies only, so GCC and Non-GCC companies cannot be included in Tax grouping.

Entities within one VAT Group are treated as one entity for the UAE VAT purpose.
Supplies made between members of a VAT Group will not be considered as a transaction under UAE VAT. Further, one entity cannot be part of more than one VAT group.

Vat Rates:                                                                                                     Exempt Supply

An exempt supply is a supply on which VAT is not charged and for which the related input VAT is not deductible.
For example: bare land, local transport, the sale of residential property (second sale onwards) lease of the residential property and certain financial services.

 

Zero-rated supply
a zero-rated supply is a taxable supply on which VAT is charged at 0% and for which the related input VAT is deductible.

For example exports, healthcare, education, international transport of passengers and goods, the first sale of residential property, medicine, and medical equipment, investment in gold, silver and platinum, crude oil & natural gas etc.

Standard Rate Supply 5%
a taxable supply at the Standard Rate is a supply on which VAT is charged at 5% and for which the related input VAT is deductible. All items which are not coming under both exempted category, as well as zero-rated category, are coming under standard rated supplies.

 MEANING OF Taxable Supply in VAT:

 

A supply of goods or services for a consideration by a person conducting business in the state .Supply can be either under zero percent or at standard rate of 5% or a deemed supply, and does not include exempt supplies.

Place of supply for VAT

It will determine whether a supply is made in the UAE or outside the UAE for VAT purposes:

 

  • If the supply is determined as made in the UAE: VAT shall be applicable.

 

  • If the supply is determined as made outside the UAE: VAT is not applicable.

 

Tax Return Filing-

As per the official site of Ministry of Finance, UAE, majority of the business entities will be required to file the VAT returns on quarterly basis, within one month/28 days from the end of the respective quarter. Filing of VAT return has to be done online through FTA portal or as directed by fta. It is very important for businesses to note that the VAT return file, generated only from the certified tax accounting software, will be allowed to be uploaded in the FTA’s e-tax portal. Here, certified tax accounting software refers to that software which meets the guidelines set by the FTA.

If the last date for filing a return falls on a public holiday, the deadline shall be extended to the first business day thereafter.

 

A tax return must declare all supplies made and received during the tax period and it

should contain necessary information such as Tax Registration No, Name of the

supplier, Value of material etc. as prescribed by the executive regulation and shall be

paid within the prescribed time limit.

 

CORRECTION IN RETURN

Correction of errors made in previous return period can be carried out. The taxable person must disclose this error to the FTA within 30 days of becoming aware of this error and include in the  Tax Return to be submitted immediately after noticing and correcting the error.

 

PENALTY FOR LATE FILLING OF VAT RETURNS

Late filing of return may attract penalty. The administrative penalty will not be less than 500 Dirhams but not exceeding three times the amount of tax in respect of which the administrative penalty was levied.

VAT Reverse Charge Mechanism

In the UAE VAT, the Reverse Charge Mechanism is applicable while importing goods or services from outside the GCC countries. Under this, the businesses will not have to physically pay VAT at the point of import.

The responsibility for reporting of a VAT transaction is shifted from the seller to the buyer; under Reverse Charge Mechanism. Here the buyer reports the Input VAT (VAT on purchases) as well as the output VAT (VAT on sales) in their VAT return for the same quarter.

The reverse charge is the amount of VAT one would have paid on that goods or services if one had bought it in the UAE. The importer has to disclose the amount of VAT under both Input VAT as well as Output VAT categories of the VAT return of that quarter.

Reverse Charge Mechanism eliminates the obligation for the overseas seller to register for VAT in the UAE.

RECORD KEEPING

It is mandatory for every taxable person to maintain books of accounts under UAE VAT law. In addition to that the authority can ask for additional documents such as, annual accounts, general ledger, purchase day book, invoices issued, invoices received, credit notes, debit notes, VAT Ledger etc.

Under the UAE VAT law the books of accounts and records are to be maintained for five years. No action can be taken by Federal Tax Authority after 5 years but no limit in case fraud is found

Tax invoice

According to the guidelines issued by Federal Tax Authority (FTA) in relation to the contents of UAE VAT Invoice there are two types of Tax Invoice:

  1. Simple VAT Invoice.
  2. Detailed VAT Invoice.

Simple VAT Invoice will be for supply less than the specified amount.

It is issued in the case when the customers are retail consumers and don’t need to provide a VAT number.

This type of invoice is for supermarket and other retail industry.

Detailed VAT Invoice will be for supply more than the specified amount.

It is issued in the case when a registered business supplies to another registered user.

This type of invoice is for wholesalers and traders dealing in bigger quantities.

Contents of UAE VAT Tax Invoice

1. Simple VAT Invoice

A simple VAT Invoice must the word “Tax Invoice” at a prominent place.

It must consist the details of the supplier. Name, Address and Tax Registration Number (VAT Number).

In addition to the above, it must contain, Date of issue of the tax invoice.

The complete description of goods supplied must be included.

Apart from that, the most important thing a simple VAT invoice must have is the Total Amount Payable and Total VAT Chargeable.

2. Detailed VAT Invoice

In addition to the above details that are in simple tax invoice, a detailed VAT Invoice will consist of the following details:

  1. Name, address, and TRN of the recipient.
  2. A unique invoice number
  3. Date of Supply, if it is different from the date of issue.
  4. Price per unit, the supplied quantity/volume, rate of tax and the payable amount in AED.
  5. Discount, if applicable.
  6. Payable Gross value of Invoice in AED.
  7. Payable Tax Amount in AED.
  8. Statement relating to Reverse Charge, if applicable.

Appeal

As a first step, the taxable person shall request the FTA to reconsider its decision. Such request of re-consideration has to be made within 20 business days from the date the person was notified of the original decision of the FTA, and the FTA will have 20 business days from receipt of such application to provide its revised decision.

If the person is not satisfied with the revised decision of the FTA, it will be able to object to the Tax Disputes Resolution Committee set up for these purposes. Objections to the Committee will need to be submitted within 20 business days from the date the person was notified of the FTA’s revised decision, and the person must pay all taxes and penalties subject of objection before objecting to the Committee. The Committee will give its decision regarding the objection within 20 business days from its receipt.

As a final step, if the person is not satisfied with the decision of the Committee, the person may challenge its decision before the competent court. The appeal must be made within 20 business days from the date of the appellant being notified of the Committee’s decision

PENALTIES

Administrative penalties

Administrative penalties are intended to address non-compliance, and encourage compliance and will be not less than 500 dirhams and not more than 3 times the amount of tax for which the penalty was levied.

Tax evasion penalties

-Tax evasion is where a person uses illegal means to either lower the tax or not pay the tax due, or to obtain a refund to which he is not entitled under law and will be Up to five times the relevant tax at stake.

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, VALUE ADDED TAX,GOODS AND SERVICE TAX, Excise, Department of Consumer Affairs, Etc for resolving their doubts or for clarifications.

 

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