UAE VAT Return Filing Guide 2024

Learn how to file your VAT returns correctly and avoid penalties from the FTA.

Filing Deadlines

Filing Deadline

28th of following month

Late Filing Penalty

AED 1,000 first / AED 2,000 repeat

Late Payment

2% + 4% + 1%/day

Understanding Your Tax Period

Your tax period determines how often you must file VAT returns. The FTA assigns tax periods based on your annual taxable supplies:

Monthly Filing

Taxable supplies exceed AED 150 million

Quarterly Filing

Taxable supplies below AED 150 million

What Information Goes on a VAT Return?

The UAE VAT return (Form VAT201) requires you to report:

Sales and Output VAT

  • Box 1: Standard rated supplies at 5%
  • Box 2: Zero-rated supplies (exports, international transport)
  • Box 3: Exempt supplies (residential rent, financial services)
  • Box 4: Supplies subject to reverse charge
  • Box 5: Profit margin scheme supplies

Purchases and Input VAT

  • Box 6: Standard rated expenses at 5%
  • Box 7: Supplies subject to reverse charge (import services)
  • Box 8: Total value of purchases

Net VAT Calculation

  • Box 9: Total output VAT (VAT you collected)
  • Box 10: Recoverable input VAT (VAT you paid)
  • Box 11: Net VAT due or refundable

Common Mistake

Many businesses confuse the filing deadline with the payment deadline. Both are due on the 28th—you must file AND pay by this date.

Step-by-Step Filing Process

Step 1: Gather Your Records

Before filing, ensure you have:

  • All sales invoices issued during the tax period
  • All purchase invoices with valid TRNs
  • Import/export documentation
  • Credit and debit notes

Step 2: Calculate Your VAT

Sum up your output VAT (VAT collected on sales) and input VAT (VAT paid on purchases). The difference is your net VAT payable or refundable.

Step 3: Log in to EmaraTax

Access the FTA portal at tax.gov.ae and navigate to "VAT Returns" to find your pending return.

Step 4: Complete the Return Form

Enter your figures in the appropriate boxes. The system will automatically calculate your net VAT.

Step 5: Review and Submit

Verify all amounts match your records. Once submitted, you cannot amend the return— any corrections must be made via a Voluntary Disclosure.

Step 6: Make Payment

If you owe VAT, pay using one of the approved methods:

  • Bank transfer (e-Dirham)
  • Credit/debit card
  • gPay

Late Filing and Payment Penalties

Late Filing Penalties

  • First offense: AED 1,000
  • Repeat within 24 months: AED 2,000

Late Payment Penalties

  • Immediately after due date: 2% of unpaid tax
  • After 7 days: Additional 4%
  • After 1 month: 1% per day (up to 300% maximum)

What If You Made a Mistake?

If you discover an error in a submitted return, you have two options:

  • Correct in next return: If the error is under AED 10,000
  • Voluntary Disclosure: Required for errors over AED 10,000

Filing a Voluntary Disclosure proactively can significantly reduce penalties compared to errors discovered during an FTA audit.

Record Keeping Requirements

You must maintain all VAT-related records for at least 5 years (15 years for real estate). Required records include:

  • Tax invoices (issued and received)
  • Credit and debit notes
  • VAT returns and supporting calculations
  • Accounting records and ledgers
  • Import and export documentation

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