VAT filing procedure in the United Arab Emirates (UAE)

Introduction 

The introduction of Value Added Tax (VAT) in the UAE marked a significant step in the country’s tax and regulatory framework. Under Federal Decree‑Law No. 8 of 2017 on Value Added Tax and its implementing regulations, taxable persons who meet prescribed thresholds are required to register for VAT, collect VAT on their taxable supplies, and file periodic VAT returns with the FTA. The filing of VAT returns is a core compliance obligation: it ensures that businesses disclose their VAT collected (output VAT) and VAT paid on their purchases (input VAT), and settle any remaining liability (or claim refund if eligible). 
This article explains the procedure for VAT filing in the UAE, step-by step, including requirements, deadlines, systems, calculations, payment, penalties, and best practices. 

Scope & Who Must File 

Who must register for VAT (leading to the filing obligation) 

• A business (natural or legal person) resident in the UAE must register for VAT if the total value of its taxable supplies and imports exceeds AED 375,000 over the past 12 months or is expected to exceed that threshold in the next 30 days. 
  

• A business may voluntarily register if its taxable supplies, imports or taxable expenses exceed AED 187,500 in the past 12 months or is expected to do so in the next 30 days. 
  

• Once registered, the entity becomes a “taxable person” with a Tax Registration Number (TRN) and becomes subject to periodic filing of VAT returns. 
  

Who must file VAT returns 

• Any person registered for VAT (i.e., has an active VAT registration) must file VAT returns for each tax period regardless of whether they made any supplies or purchases during the period.  
  

• Businesses making only exempt supplies (and no taxable supplies) may not be required to file if no registration is required. However, once registered obligations apply. 
  

• The FTA may assign specific tax periods (monthly or quarterly) depending on the business turnover or other criteria. 
  

Tax-Period & Deadlines 

Tax period 

• The tax period is the time interval for which the VAT return must be filed. Typically, for most businesses with annual taxable supplies below AED 150 million, the tax period is quarterly. 
  

• For businesses with annual taxable supplies of AED 150 million or more, the tax period may be monthly.  
  

• The FTA may assign different filing frequencies based on business type or compliance history.  
  

Deadline for filing & payment 

• The VAT return must be filed within 28 days after the end of the tax period.  
  

• For quarterly filers, the return for Q1 (Jan-Mar) is due by April 28, Q2 by July 28, Q3 by October 28, Q4 by January 28 of the following year.  
  

• For monthly filers, the return is due by the 28th day of the month following the end of each tax period.  
  

• Payment of any VAT due must also be made by the deadline. Filing without payment does not discharge the payment obligation and may still result in penalties. 
  

The VAT Return – Form and Content 

The standard form: VAT 201 

• The VAT return is submitted electronically via the FTA’s portal (e-Services / EmaraTax). 
  

• The standard form used is known as VAT 201. 
  

Sections in the VAT return 

Some of the key sections include: 

• Taxable person and return period details (TRN, name, period reference) 
  

• VAT on Sales and Other Outputs (Boxes such as 1 to 8) – includes standard-rated supplies, zero-rated supplies, exempt supplies and imported goods, and adjustments. 
  

• VAT on Expenses and Other Inputs (Boxes 9 to 11) – includes recoverable input tax, adjustments, etc. 
  

• Net VAT Due (Boxes 12-14) – the difference between output VAT and input VAT; indicates Payable Tax or Refundable Tax. 
  

• Declaration and authorised signatory.  

Supporting documents and records 

• Tax-registered businesses must maintain tax invoices, purchase invoices, credit/debit notes, import/export documentation, and other supporting records for each period. 
  

• While not submitted with every return, these must be readily available for audit or review by the FTA. 
  

Filing Procedure – Step by Step 

Here is a generic step-by-step procedure for filing a VAT return in the UAE: 

1. Prepare your records 
   

• Reconcile all sales and purchases for the tax period. 
  

• Identify taxable supplies (standard-rated at 5%), zero-rated supplies, exempt supplies. 
  

• Confirm input VAT recoverable and output VAT collected. 
  

2. Log in to FTA’s portal 
   

• Access the portal (for example via EmaraTax / eServices at eservices.tax.gov.ae) with your credentials. 
  

• Navigate to the “VAT” section, select “VAT Returns” or “File Return” for the relevant tax period. 
  

3. Complete the VAT 201 form 
   

• Either manually enter data in each box or upload the Excel template if available. 
  

• Fill out: 
  

• Output sales and VAT (standard-rated, zero-rated, exempt, reverse charge etc) 
  

• Input purchases and VAT recoverable 
  

• Net VAT payable or refundable 
  

4. Review and submit 
   

• Review all entries for accuracy. 
  

• Tick the declaration checkbox and submit the form. 
  

5. Make payment (if required) 
   

• If the return shows a net VAT payable, make the payment via the portal, or as directed by the FTA using approved payment methods.  

• Ensure payment is made by the deadline (28 days). 
  

6. Record-keeping 
   

• Save a copy of the filed return and payment acknowledgement. 
  

• Maintain all supporting documents for at least five years (as required under FTA guidelines). 
  

Calculating VAT Liability 

• Output VAT is the VAT you have charged customers on your taxable supplies.  

• Input VAT is the VAT you have incurred on your business purchases which is recoverable (subject to the rules). 
  

• Net VAT payable = Output VAT − Input VAT. If output VAT exceeds input VAT, you must pay the difference. If input VAT exceeds output VAT, you may carry the recovery forward (or claim a refund if eligible). 
  

Payment of VAT 

• Once the VAT return shows a payable amount, payment must be made within the deadline via the methods stipulated by the FTA. 
  

• The payment details (such as bank account, IBAN, SWIFT) are provided in FTA guidance. 
  

Penalties & Compliance Risks 

• Failure to file a return or pay on time can result in administrative penalties under Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE. 

• Examples: Late filing may carry penalties starting at AED 1,000 for first-time offences.  
  

• It is vital to ensure accuracy of the return; incorrect or misleading information may lead to penalties or audits. 
  

Best Practices for Businesses 

• Maintain proper accounting systems that separate taxable, zero-rated and exempt supplies. 
  

• Implement internal controls and periodic reconciliations of VAT output and input. 
  

• Mark your TRN on all tax invoices and ensure your invoices comply with all requirements. 
  

• Monitor your filing deadlines and set internal reminders well ahead of the 28-day cut-off. 
  

• If you operate across emirates, ensure you correctly capture supplies per emirate and imports (if applicable) since these may affect the return. 
  

• Consider engaging a qualified tax professional or advisor to review filings and ensure compliance. 
  

• Keep abreast of any updates or changes in FTA policies, guidance, or portal functionalities. 
   

Conclusion 

Filing the VAT return in the UAE is a legal obligation for every VAT-registered business, governed by the Federal Tax Authority. The process registration, record-keeping, calculation, submission, and payment is designed to ensure transparency, accuracy and timely compliance. By following the steps outlined above, businesses can minimise risk of penalties, maintain good standing with the FTA, and focus on their core operations with confidence in their tax compliance.