4 STEPS TO SUBMIT A VAT RETURN

1-Login to the FTA eServices portal and go to the ‘VAT’ tab whereby you will be able to access your VAT

Returns. From this screen you should click on the option “VAT 201 – New VAT Return”

2-Complete the Form:

Fill in the following details:

• The sales and all other outputs as well as expenses and all other inputs as follows:

1. The net amounts excluding VAT.

2. The VAT amount.

• The system will then calculate the payable or refundable tax.

In what cases is input tax not recoverable?

 Input tax is not recoverable in the following cases:

-- When input tax is incurred by a Person for provision

of entertainment services* to anyone not employed

by the Person, including customers, potential

customers, officials, or shareholder or other owners

or investors.

-- Where a motor vehicle was purchased, rented or

leased for use in the business and is available for

personal use by any person.

-- Where goods or services were purchased to be

used by employees for no charge to them and for

their personal benefit including the provision of

entertainment services except -

οοwhere employer is under legal / contractual

obligation to provide such goods / services or

such goods / services are otherwise part of the

documented policy or normal business practices.

οοwhere the provision of goods/services is a

deemed supply.

What are the conditions to recover input tax?

 Recipient must be a taxable person and must be registered for VAT.

• VAT on the purchase must have been correctly charged

by the supplier.

• The goods or services must have been acquired for an

eligible purpose.

• Recipient must have received and retained a tax invoice

evidencing the transaction

• The amount of VAT which the recipient seeks to recover

must have been paid in whole or in part, or have been

intended to be paid in whole or in part

• VAT paid on the transactions is not specifically blocked

from being recoverable as input tax.

• Reversal of recoverable input tax is required if the

Do property owners have to register for VAT? What if the property is registered in joint names?

 If property is owned and self-used, registration is not required.

If it is rented but if it is residential property more than 3 years old, registration is not required. However, if it is residential property newly constructed or a commercial property (irrespective of new or old), the registration is required, if the rental exceeds Dh375,000.

However, if property is not for rental or business and sold in individual capacity, registration is not required irrespective of selling price.

What Supplies are Zero Rated in UAE?

Below  are Zero Rated supplies  in UAE?

• Newly constructed residential buildings which are on sale for the first time within 3 years of its construction;
• Means of transportation such as aircraft and ships;
• International GCC transport of passengers and goods;
• Export of products and services to outside the GCC;
• Certain precious metals for investment such as gold, silver, and platinum;
• Aircraft or vessels used for rescue and assistance by air or sea;
• Healthcare services and products;
• Covid-19 related products such as disposable suits, hand sanitizers, face masks, respirators for fair, gloves, etc;
• Certain educational services and all related products.