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Businesses are required to maintain proper records to file the VAT returns for your following transactions:

a) Local Sales falling under normal VAT procedure, 

b) Taxable Export Sales (GCC Sales), 

c) The VAT Exempted sales,

d)  Local Purchases and Import Purchases. 

d) Zero-rated Export Sales.

VAT Training 

It is indispensable that organisations should try to understand the implications of the new taxes and make every endeavour to line up their business model to government reporting and compliance provisos. Businesses may need to make some changes to their mainstay operations, accounting and book-keeping, technology, and maybe even to their human resources to wholly abide by the UAE VAT legislation.

VAT Impact Study

VAT implementation in the UAE has brought some fundamental positive changes to the region that are discussed below. 

  • . Amplified lucidity and responsibility
  • . Advanced universal competitiveness
  • . Organisations with sophisticated ICT
  • . Improved functioning competence
  • . New resource of financial support for socio-economic programmes

What is VAT Return Filing? 

All the VAT registered organisations or the ‘taxable persons must submit a ‘VAT return’ at the end of each tax period to the Federal Tax Authority (FTA). VAT return filing declares how much VAT is to be paid by the taxpayer or reimbursed by the tax authorities. A VAT return recapitulates the assessment of the supplies and purchases a taxable person has made during the tax period and shows the taxable person’s VAT liability. 

What is VAT Liability & How is it Calculated?

VAT Liability is the distinction between the output tax payable (VAT charged on supplies of goods and services) for a specified tax period and the input tax (VAT incurred on purchases) recoverable for the same tax period.

VAT Liability is calculated taking into account the following factors:

  • . The entire sales and purchases of your business in the germane return period
  • . The amount of VAT you owe for sales
  • . The amount of VAT you are able to claim for the purchases made

If the output tax exceeds the input tax amount, the difference must be paid to the FTA. If the input tax exceeds the output tax, the taxable person will have the excess input tax recovered. He will be at liberty to set this off against subsequent payment owing to the FTA. 

How to File VAT Return in UAE?

Businesses have to file for tax returns electronically through the FTA portal ‘’ and fill in Form 201:

  • . Particulars of the taxable person
  • . The period of VAT return
  • . VAT on expenses and all other inputs
  • . VAT on sales and all other outputs
  • . Net VAT due
  • . Added Reporting Requirements
  • . Statement and Certified Signatory

VAT Return Form 201

Form 201 is a statement that is required to be made by the taxpayer by the end of every tax period. It involves:

  • . Particulars of the taxable person
  • . The Period of VAT Return
  • . VAT on Expense and All Other Inputs
  • . VAT on Sales and All Other Outputs
  • . Net VAT Due
  • . Added Reporting Requirements
  • . Statement and Certified Signatory

What are the Benefits of Filing VAT Return?

  • . VAT compliance brings goodwill to the business.
  • . Good business collaboration.  In effect, many large companies are habitually indisposed to carry out business with non-VAT-registered companies.
  • . The business picture gets highlighted once registered under VAT law.
  • . VAT is easier to administer when compared to any other indirect tax.

When are Businesses Required to File VAT Return?

The standard tax period for VAT return is:

  • . Quarterly for businesses with an annual turnover below AED150 million
  • . Monthly for businesses with an annual turnover of AED150 million or more
  • . The FTA may, at its discretion, allocate a different tax period for a certain type of business

VAT Assessment 

The businesses are liable to charge the tax to the customers based on the output and input tax. 

Output tax is the VAT collected on selling goods or providing services to the clients. Input tax is the VAT paid on purchasing raw materials for the goods or services.

Hence, the formula for VAT assessment is:

VAT = Output Tax – Input Tax

MBA VAT Services

Ignorance is bliss, but it is a blunder in the case of VAT. Businesses that fail to comply with the rules and regulations of VAT may have to face serious penalties that may harm the goodwill of the business as well as the reputation of the businessman in the market. Besides providing top-notch VAT services in UAE, MBA offers Tax Consultancy Services and Implementation and Tax Reclaim Services at a very reasonable charge. Having a huge number of clients,  MBA is acclaimed as a leading platform that has been dealing with VAT services in UAE of start-ups and established businesses across the Emirates. MBA also provides Accounting & BookKeeping Services, Accounts Outsourcing Services, Internal Auditing Services, and a lot more other services related to the business in the UAE.

If you are looking for any services related to VAT in UAE, feel free to contact MBA; our vat consultants will be always there for your assistance to provide the best VAT services across the Emirates.

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