As per the official site of the Ministry of Finance, UAE, the majority of the business entities will be required to file the VAT returns on a quarterly basis, within one month/28 days from the end of the respective quarter.
USE OF ACCOUNTING SOFTWARE
The business in UAE is required to generate the VAT return File from their accounting software, log in 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 log in 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 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 in the other details required by FTA and submit it.
CORRECTION IN RETURN
Correction of errors made in the 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 it in the Tax Return to be submitted immediately after noticing and correcting the error.
PENALTY FOR LATE FILING OF VAT RETURNS
Late filing of returns may attract a 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.
