Oct 17, 2025
Running a business in UAE means compliance with VAT regulations is not optional. Once you’re VAT-registered, you must file VAT returns on schedule and accurately. This guide walks you through each step—so you avoid penalties and stay in good standing.
What Is a VAT Return & Who Must File It?
A VAT return is a document you submit to the the Federal Tax Authority (FTA) summarising your taxable sales (output VAT), your deductible purchases (input VAT), and the net amount due (or refund).
Every business registered for VAT in UAE must file a VAT return—even if for that period you had zero taxable supplies.
Mandatory registration applies when your taxable supplies and imports exceed AED 375,000.
If your turnover is between AED 187,500 and AED 375,000, you may choose to register voluntarily.
If you only make exempt supplies, you might not need to file. But for standard or zero-rated supplies, filing is required.
Tax Periods & Filing Deadlines
Your VAT return must be filed electronically via the FTA’s e-services portal (Emaratax) within 28 days of the end of each tax period.
Which tax period applies depends on your turnover:
Quarterly: For businesses with turnover below AED 150 million.
Monthly: For large businesses (turnover ≥ AED 150 million) or as assigned by FTA.
If the 28th falls on a weekend or public holiday, the deadline moves to the next working day.
Missing deadlines means fines and penalties.
Step-by-Step VAT Filing Process
Here’s how to complete and submit your VAT return (VAT 201 form).
1. Prepare your financial records
Gather all sales invoices, purchase invoices, credit/debit notes, import/export documents, and supporting records. Ensure they are properly categorized (taxable, zero-rated, exempt).
Check that your accounting software or ledger accurately records VAT amounts. Discrepancies here cause mistakes later.
2. Log in to the FTA portal
Go to the FTA’s e-services portal (Emaratax). Use your credentials or UAE Pass where applicable.
Select VAT → VAT 201 – New VAT Return and choose the tax period you are filing for.
3. Fill in sections of VAT 201
VAT 201 is divided into several sections:
Taxable person & period details – TRN, business name, address, return period etc. Many fields auto-populate.
Sales / Outputs – Report all taxable supplies and VAT collected, including standard and zero-rated supplies.
Purchases / Inputs – Report purchases and expenses and VAT paid that are recoverable.
Net VAT due or refundable – System calculates difference; if output > input, you pay; if input > output, you reclaim or carry forward.
Additional reporting – Applicable if you used profit margin scheme or adjustments.
Declaration & signatory – Confirm all entries, provide authorized signatory, and submit.
4. Review & validate
Before submitting, double check every entry. Look for arithmetic mistakes, misclassification of supplies, mismatched input claims, or missing adjustments.
If you spot errors after submission, you may need to file a voluntary disclosure to correct them (if within allowed period) via the FTA portal.
5. Submit the VAT return
Once you are confident the form is accurate, submit the return. You will receive an electronic acknowledgement which you must save.
6. Pay the VAT (if applicable)
If your return results in VAT due, you must pay it in the same timeframe:
Payment via e-dirham, credit card, or bank transfer using GIBAN.
If there’s no VAT due, you still file a “nil” return.
7. Keep records & audit readiness
Maintain all VAT returns, invoices, ledgers, and supporting documentation for at least five years.
FTA may audit your business — having clean records and proof helps you respond.
Businesses looking for reliable, end-to-end VAT filing support in the UAE can learn more about our VAT Filing in Dubai service.
Common Errors & Tips to Avoid Them
Misclassifying supplies (standard, zero-rated, exempt)
Overclaiming input VAT or claiming ineligible expenses
Forgetting reverse charge or import VAT entries
Late submission or late payment
Incomplete supporting documentation
To reduce mistakes:
Use reliable accounting software with VAT modules
Build internal review steps
Stay updated on FTA changes
In complex cases, consult VAT professionals
Why Outsourcing VAT Filing Makes Sense
Many businesses prefer to outsource their VAT filings to accounting firms or tax agents. The benefits:
Saves time and reduces error risk
Ensures compliance and avoids fines
Lets you focus on your core business
Leverages experts familiar with nuances and updates
If you’d like professional support for your VAT filings in Dubai, visit our service page: VAT Filing in Dubai
Filing VAT returns in UAE is procedural but demands care. Follow these steps, keep good records, and stay within deadlines. And if VAT becomes too cumbersome, professional assistance can give you peace of mind and compliance security.
