The Importance of VAT Compliance in the UAE

Since its introduction in 2018, the 5% Value Added Tax (VAT) has been a crucial part of UAE business operations. Filing your VAT returns correctly and on time is essential to avoid severe penalties from the Federal Tax Authority (FTA).

Steps to File Your VAT Return

1. Access the FTA EmaraTax Portal: Log in using your registered credentials.

2. Select the VAT Return Form (VAT201): Ensure you are filing for the correct tax period.

3. Declare Standard Rated Supplies: Input all sales subject to the 5% VAT in the respective Emirates.

4. Declare Zero-Rated and Exempt Supplies: Accurately report exports and exempt services.

5. Input Recoverable Input Tax: Declare the VAT you paid on business expenses to offset your liability.

6. Submit and Pay: Review the net VAT payable or refundable, submit the form, and generate the payment reference.

Automate it with Ledgerly: Generating the VAT201 report manually takes hours. Ledgerly compiles your sales, expenses, and VAT liabilities in real-time, giving you a one-click FTA-compliant report ready for submission.