VAT Filing in UAE: Monthly vs Quarterly Explained (2025 Guide)

What is VAT Return Filing?

A VAT Return is an official summary submitted to the Federal Tax Authority (FTA) that reports:

Total sales and purchases
VAT collected (output VAT)
VAT paid on expenses (input VAT)
VAT due or refundable

It’s a mandatory filing for all VAT-registered businesses in the UAE, either monthly or quarterly, depending on FTA assignment.

Monthly vs Quarterly VAT Filing – Key Difference

Criteria	Monthly Filing	Quarterly Filing
Tax Period	1st to end of each calendar month	3-month periods (as per FTA cycle)
Due Date	28th of the following month	28th of the month after the quarter ends
Assigned by	FTA discretion	FTA discretion
Best For	Large businesses, high transactions	SMEs and businesses with low volume

Who Decides the Filing Frequency?

The FTA automatically assigns your VAT return frequency based on:

Business size
Transaction volume
Risk level

You cannot choose your frequency manually. However, in rare cases, a business may request a change through a justified application.

What Are the VAT Return Periods?

🔹 Quarterly Periods (Example for 2025):

Jan–Mar → File by April 28
Apr–Jun → File by July 28
Jul–Sep → File by October 28
Oct–Dec → File by January 28

🔹 Monthly Period (Example):

May 2025 → File by June 28, 2025

Which Businesses Are Usually on Monthly Filing?

FTA assigns monthly VAT filing to:

Large corporations
Real estate and construction firms
Businesses with high turnover
Companies frequently engaged in imports/exports

Why? Closer monitoring of large tax amounts and compliance risk.

How to File VAT Returns in UAE?

Login to your FTA portal
Go to “VAT” → “VAT201 – VAT Return”
Input:
- Sales and output tax
- Purchases and input tax
- Adjustments (credit notes, bad debts, etc.)
Review summary
Submit and pay VAT due

What are the Penalties for Late Filing?

Violation	Penalty
Late VAT return filing	AED 1,000 (first time), AED 2,000 (repeated)
Late VAT payment	2% immediately, 4% after 7 days, 1% daily (up to 300%)

Can You Change Your Filing Frequency?

Not directly via the portal. But in some cases:

You can email FTA and request a change, with a strong justification
Approval is subject to FTA’s discretion

Required Records for Filing

Tax invoices (sales & purchases)
Debit/credit notes
Bank statements
Custom documents (for import/export)
Summary reports from accounting software

Records must be retained for 5 years minimum.

Using Software for VAT Filing

Businesses are encouraged to use:

Zoho Books
QuickBooks
Tally
Xero

These tools integrate with the FTA format and reduce human error in return filings.

FAQs – Most Searched in UAE (2025)

Q: Can a small business be required to file monthly VAT?
A: Yes, if FTA assesses high risk or turnover, even small businesses may be assigned monthly filing.

Q: Is the due date the same for both monthly and quarterly?
A: Yes, VAT returns must be filed by the 28th day after the tax period ends.

Q: What happens if my due date falls on a weekend?
A: File and pay before Friday. FTA doesn’t extend deadlines for holidays or weekends.

Q: Can I prepay my VAT?
A: Yes, but the VAT return must still be filed separately before the deadline.

Conclusion

Whether your VAT filing is monthly or quarterly, timely submission and accurate reporting are crucial to staying compliant and avoiding penalties in the UAE. Businesses should:

Track their tax periods
Use accounting software
Set up automated reminders
Seek professional help for reconciliation

For stress-free VAT return filing and FTA representation, get in touch with our expert consultants today.

Contact number: ‪+971 50 983 0334‬

Email ID: info@alphabets.ae