How to File a UAE VAT Return, Step by Step
From recording sales and purchases to submitting the VAT201 return on the FTA portal: a step-by-step walkthrough.
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A UAE VAT return (VAT201) summarises the VAT you charged on sales and the VAT you can recover on purchases for a tax period. Here is the process from start to finish.
Step 1: Know your tax period
Most businesses file quarterly; some are assigned monthly periods. The return is generally due by the 28th day after the period ends. Your period is shown on your FTA account.
Step 2: Record every sale
Each invoice should show the correct VAT treatment: standard-rated at 5%, zero-rated or exempt. Do not forget credit notes, which reduce output VAT. If you sell at a counter, POS sales must be included.
Step 3: Record every purchase
Keep tax invoices from suppliers. Input VAT can usually be recovered only with a valid tax invoice and only for business purposes. Some items, such as certain entertainment costs, are restricted.
Step 4: Handle special cases
- Zero-rated supplies such as exports (see zero-rated vs exempt)
- Reverse charge on certain imports of services
- Imports of goods and customs documents
- Bad debt relief where conditions are met
Step 5: Reconcile
Compare your VAT report with your ledger. The VAT control accounts should agree with the totals you are about to declare.
Step 6: Complete the VAT201
Enter the figures box by box on the FTA e-Services portal: standard-rated supplies per emirate, zero-rated and exempt supplies, imports, and recoverable input VAT. Our VAT201 calculator helps you check the arithmetic.
Step 7: Submit and pay
Submit by the due date and pay any net VAT due. If you are late, penalties apply. Estimate them with the UAE VAT penalty calculator.
Make it easier
Accounting software that records VAT at the point of sale and purchase gives you the return figures from a report instead of a spreadsheet. Pyalm Books tracks input and output VAT on every document and is free during beta. Start free.
Rules and deadlines change. Confirm the current position with the Federal Tax Authority (tax.gov.ae) or a qualified adviser before you file or pay.