Definition

A VAT Return is the official report that VAT-registered businesses in the UAE must submit to the Federal Tax Authority (FTA). It shows taxable sales, purchases, output VAT, and input VAT for a tax period, and determines how much VAT is payable or refundable.

Key points

• Filed as Form VAT201 through the EmaraTax portal.
• Frequency: Quarterly for most businesses (monthly for some).
• Deadline: The 28th day after the end of the tax period.
• Must be submitted even with no transactions (nil return).
• Late filing results in AED 1,000 penalty for the first offence and AED 2,000 for repeat offences.

Practical example

A company with AED 500,000 in taxable sales and AED 200,000 in purchases in one quarter will declare:

• Output VAT = AED 25,000
• Input VAT = AED 10,000
• Net VAT payable = AED 15,000 in the VAT Return.

Why it matters

Accurate VAT returns ensure compliance, avoid penalties, and support input VAT recovery.