Today we are going to discuss and understand how to file the VAT return under UAE VAT Law. Everybody knows the VAT return has to be filed online. The online portal is available under the FDA's website to move ahead first. The taxable person has to log into the FTS website.
Once he logins, then he can see the electronic services area. Once you click the electronic services area, it will directly lead you to the login page. You can give your email ID and password in which you have already created the login ID. Use the same email ID and password; then you will enter into the official dashboard page of the federal tax authority.
In this your TRN number, your GI buy number, then whether you are a tax loop or not, then the first VAT written period, then the first VAT return new date and your tax period whether it is monthly or quarterly also will be mentioned.
Click the VAT; then you can see VAT 201- VAT returns and down you can see VAT 201-new VAT return. Click the VAT 201-new tax return; you can see your details like
· TRN number
· Taxable person's name in Arabic English
· Your address,
· Then the VAT return period
· VAT Return due date
· Tax year-end tax period reference number
Then you can see the first Year VAT return form - VAT 201 and see a liability created under serial number six that is the value of the import and the tax due for it. I'll explain the details of that one later stage. You can see the output and import the first page first part will be output liability. The second part will be the input liability, the declaration, and authorized signatory details should also be provided.
So far, you have view the VAT return 201 VAT returned to form. You understood that some outputs and input and the net amount to be disclosed would be the amount of payable or refundable from the authority.
Now we are taking some examples of transactions, some sales, return a purchase, expenses, import, export all these transactions will be discussed step by step, and let us see how we have to enter that one in the VAT return.
Here are some sales there are transaction three translations are shown here
· Sales from Dubai to the customers all over you UAE that is total value is three million.
· Sales from a shop in Sharjah to all customers in the UAE 1.1 million
· Sales from Abu Dhabi shop to all customers all over the UAE that is 2 million
So let us see how the tax liability has to be accounted for these transactions see here under the VAT 201 returned.
· For standard rated supply from Abu Dhabi 2 million tax among the hundred thousand
· Standard rate supply in Dubai 3 million tax amount is 150,000 and
· Standard writers are playing charges 1.1 million tax liabilities 55 thousand.
We have to record in the VAT return form like this. Please note down even though you are supplying to all the customers all over the UAE. But the recording purpose this has to be from the shop or the office from which Emirates you salt it doesn't mean that was the customer's office located or customers' place of office is located.
The fixed establishment of your company is a big world that means if you are selling from charges office or cigar shop, it will be charged a sales under the Sharjah Emirates. If your sale is from the Dubai shop or Dubai office, your sale is from under the Dubai Emirates.
Sales Return:
Another transaction supposes sales returned assume that during the period one hundred thousand worth of meat-eaters were returned from Dubai shop by a customer.
How to record this transaction and are they VAT returned see in the output area one my standard rate is supplied in Dubai earlier. It was three million now; I reduced 100,000 from the sales amount and the output reliability by 5,000. 5,000 is the tax amount of 400,000 of the value of the sales return.
When the sales return happens, this supplier has to make a sales return document, and that is the credit note has to be assured. This credit note will be a hundred thousand, and the tax amount for that her credit note will be five thousand exports during the period.
Export:
Two million worth of goods were exported to India on how to record this export of transactions. See, under serial number four, the value of the export is zero-rated at the zero-rated supply two million. So the VAT amount is Zero.
How to record imports of Goods and Services
How to record these sales return as well as export now let us see how to record the import of goods and services in this example goods are coming from the UK to the UAE under the UAE VAT law reverse charge mechanism will be applied. That means the importer has to record the tax liability on purchases.
Let us assume that at the good worth of 1 million, a CIF value of the Goods 1 million is coming to the UAE from the UK, customs duties five percentage. Hence the VAT liability will be fifty-two thousand five hundred, five percent of 1 million fifty thousand.
Now in the UAE VAT return form, you can see an auto-populated message that means the value of the goods which you imported through UAE customs will be auto-populated under serial number six. See the value of 1 million fifty thousand two displayed there, and the total output reliability for the imported items that is fifty-two thousand five hundred also will be displayed.
You need not make any adjustments there. It is automatically auto-populated. It is the figure that automatically comes for the value of the goods you imported and sees we can take the input credit of such import. So the line number ten shows that the input credit on such import the value of the importers 1 million fifty thousand and the entire amount fifty two thousand five hundred input rent has taken.
Let us see a service transition a company as importing these services worth getting the service from a UK company. Here also we had to account under the reverse charge mechanism. For example, suppose the import of service values 1 million here the transition has to be recorded like this. The journal entry of the transition is, as shown here, translation has to be recorded in the UAE.
There are a lot of complicated transactions that happen in an organization. Once you file the return while filing the return, you should make sure that you are complying with the entire VAT law. Whether you are eligible to take input credit as per the VAT Law has to be checked properly whether the input credit eligibility under different clauses has complied.
There are additional closes available for different transactions like X entered supply zero readers of play and different nature of transactions. So from this basic information, you may not be able to file your return for India during the period.
So if you want any support from any of the consultants or tax agents, the people are available in the market, and Simply Solved as a consultant, we are there to support you so anytime you can contact our office finding help as a tax consultant.
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