How to File VAT Returns in UAE (2025)

What Is a VAT Return?

A VAT return is an official document submitted to the Federal Tax Authority (FTA) summarizing:

Total sales and purchases
Output VAT collected on sales
Input VAT paid on expenses
VAT payable or refundable

All VAT-registered businesses in the UAE must file their returns monthly or quarterly, depending on their FTA-assigned tax period.

VAT Return Filing Deadlines in UAE

Due Date: Within 28 days after the end of the tax period
Filing Frequency:
- Quarterly: Most SMEs
- Monthly: Large enterprises with high volumes

Late filing or late payment results in FTA penalties.

Documents and Data Required

Before you file, prepare:

Sales invoices
Purchase and expense invoices
Customs documents (for imports)
Credit/debit notes
VAT calculation sheet
Access to FTA portal

How to File VAT Returns on FTA Portal – Step-by-Step (2025)

Step 1: Login

Visit: https://eservices.tax.gov.ae
Enter your FTA credentials

Step 2: Navigate to VAT Return

Click on “VAT” in the menu
Select “VAT201 – VAT Return”

Step 3: Fill Out the VAT Return Form

Sections to fill:

Sales and Output Tax – Include local sales, exports, and zero-rated supplies
Adjustments – Credit notes or bad debt adjustments
Expenses and Input VAT – Purchases, expenses, and imports
Net VAT Payable – System auto-calculates amount due or refundable

Step 4: Review and Submit

Double-check entries
Click “Submit”

Step 5: Make Payment

Go to your FTA dashboard
Click “My Payments” → Choose Pay Now
Pay using e-Dirham, debit card, or UAE bank transfer

How to Pay VAT to FTA?

Payment Methods:

e-Dirham / credit or debit card
Bank transfer via GIBAN (IBAN provided by FTA)
Exchange center (select registered outlets)

Important: Payment is not complete until it’s reflected in your FTA account.

Penalties for Late Filing or Payment

Violation	Penalty
Late VAT Return Filing	AED 1,000 (1st offense), AED 2,000 (repeat)
Late VAT Payment	2% immediately, 4% after 7 days, 1% daily (up to 300%)
Incorrect Return	AED 1,000 (first), AED 2,000 (repeat)

Amending a VAT Return

If you make a mistake:

File a Voluntary Disclosure (VAT211)
Must be done within 20 business days of discovering the error
Avoid deliberate misreporting to prevent severe penalties

Should You Use Software?

Yes. For accurate and fast filing, use:

Zoho Books
QuickBooks
Tally ERP
Xero

They generate VAT-compliant reports and integrate with FTA requirements.

Tips to Simplify VAT Return Filing

Reconcile invoices monthly
Automate reports with accounting software
File 3–5 days before deadline to avoid system slowdowns
Keep copies of return confirmations and payment receipts

FAQs – Most Searched in 2025

Q: Can I file VAT return without paying?
A: Yes, but payment must still be made before the deadline to avoid penalties.

Q: What if I have no sales or expenses in a period?
A: File a nil return – still mandatory.

Q: Is VAT filing different for Free Zones?
A: No, unless you’re in a Designated Zone with specific treatment on goods movement.

Q: Can I revise my VAT return after submission?
A: Yes, through a Voluntary Disclosure form if errors are found.

Conclusion

Filing VAT returns correctly and on time is crucial to remain compliant and avoid penalties. Whether you’re filing monthly or quarterly, keeping records, reconciling data, and using proper tools are key to stress-free VAT management.

Need Support with VAT Filing?

At Think Biz Management Consultancies, we help you:

Prepare and file your VAT return on time
Reconcile input and output VAT accurately
Respond to FTA queries and audits
Submit voluntary disclosures if needed
Automate your VAT with accounting software

Contact us today for a free consultation.
Let our experts file your VAT so you can focus on your business.

Contact number: ‪+971 50 983 0334‬

Email ID: info@alphabets.ae