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VAT Return Filing in UAE Under UAE VAT, the first VAT return is due on 28th Feb, 2018, which will be filed by those businesses for whom the monthly VAT return is applicable. The businesses are required to file VAT Return online using the Federal Tax Authority (FTA) portal. The FTA portal is designed to accept the returns only through online mode as offline capabilities to file VAT return through XML, EXCEL or any other utility are currently not available. This implies that the taxpayer is required to manually provide the values of Sales, Purchase, Output VAT, Inputand Input VAT etc. in the appropriate boxes of the VAT return form available in FTA portal. The VAT Return form is named as 'VAT 201' which the taxpayer needs to fill and submit in order to complete the VAT Return filing. The Form VAT 201 is broadly categorized into 7 sections as mentioned below: • Taxable Person Details • VAT Return Period • VAT on sales and all other outputs • VAT on expenses and all

VAT has been implemented in the UAE and KSA from January 1st 2018,as mandated by the GCC.  5% VAT will be implemented on the supply of goods and services. It is mandatory for businesses to maintain books of records for a minimum of 5 years henceforth. Read on to get answers to any questions you may have related to VAT. What is VAT? Value Added Tax (VAT) is a general consumption tax which will be levied on the majority of  transactions of goods and services. It is charged at every point of sale, from manufacturing to  sale to an end consumer. The mechanism of input tax deduction ensures that the businesses  act as tax agents or tax collectors on behalf of the government by collecting tax from the end consumers, account the collected amounts and pay the tax. This is achieved by adjusting the tax paid on purchases referred to as ‘Input Tax Credit’ or  ‘Input VAT’ with the VAT collected on sales referred to as 'Output VAT.'' If there is any balance  liability