After January 1st, 2018, all registered businesses in the UAE had to file for VAT refunds online. VAT refunds have to be filed every quarter, and some companies may request VAT refunds on a monthly basis. VAT return is also called a tax return statement that needs to be submitted to the Federal Tax Authority (FTA) regularly.
The VAT 201 form is used for filing a VAT refund on the FTA e-portal. It is a consolidated form that requires the registered person to add details like the total value of supplies, output VAT, input VAT, and total tax due for the current tax period.
What is VAT Return Form 201?
All the registered businesses and personnel in the UAE have to submit the VAT 201 form for a refund as soon as the tax period is over. The VAT 201 form can be accessed on the FTA e-portal by logging in via your registered username and password. The VAT 201 form is classified into seven major sections as follows:
- Details of Taxable Person
- VAT Return Policies
- VAT on expenses and other inputs
- VAT on sales and other outputs
- Additional reporting requirements
- NET due amount
- Declaration and authorized signatory
Each of the above sections includes several boxes and requirements that need to fill by the taxpayer to complete the VAT return filing successfully. When filing for VAT returns, do consider contacting the best VAT consultancy in Dubai to make sure everything is filled correctly without any mistakes.
VAT 201 Form in Detail
All VAT registered businesses in the UAE need to file VAT returns online through FTA e-portal. For VAT Return, the companies only need to provide brief financial details of supplies like total sales, input, and output VAT and total purchases. Although the businesses must classify all the supplies as follows:
- Standard rated supplies
- Exempt commodities
- Zero-rated commodities
- Reverse Charge commodities
- Intra GCC Commodities.
After accessing the form online, you will see multiple boxes and lines that have to be manually filled by the taxpayer. If it is your first time filling the VAT 201 form, consider approaching the best VAT consultancy in Dubai to help you with the application process.
The first step relates to “Emirate-wise standard rating supplies.” For example, standard-rated supplies in Dubai, Abu Dhabi, Sharjah, etc. Here you are supposed to provide the total amount of supplies. Sales that should not be a part of the total amount are:
- Sale of goods within the allocated zones, but are not consumed within these assigned zones.
- Supplies that are out of the scope of VAT
- Zero-rated supplies like zero-rated health services or educational services.
Box 2 includes “tax refunds provided to the tourists under tax returns in the tourist scheme. Under this column, you are supposed to enter the amount that has been refunded to the tourists. Only those businesses who are under the “tourist tax refunds scheme” can use this box. As the number in this box is always negative, this would reduce the overall output tax.
Box 3 includes “supplies subjected to reverse charge provisions.” It includes tax liability on products that were imported without customs under the reverse charge mechanism.
Box 4 is for the total value of supplies that are subject to VAT at zero percent, also called zero-rated supplies.
Box 5 is for the total value of exempt supplies, i.e., supplies that are exempt from VAT in UAE.
Box 6 is for the net value of goods imported into the UAE. It includes both production tax and net value on imported goods. The total value is pre-calculated on custom statements using TRN of the taxpayer/ registrant and import code. The total amount includes both excise tax, and the customs duty levied on the imported goods.
Box 7 is for “adjustments to goods imported into the UAE” in case there is any discrepancy (incomplete or inaccurate) in the information in box 6.
Box 8 automatically calculates the total VAT according to the sum of all the boxes from 1-7.
It includes the total amount subject to the standard VAT rate that you will recover from the Input tax credit.
It includes “supplies subject to reverse charge provisions.” It includes the amount that you paid as output tax under reverse charge mechanism (as mentioned in boxes 3, 6, and 7). This is the amount that you get back.
It automatically calculates the total value of box 9 and 10.
Box 12 shows the overall value of output tax that is due for the tax period.
It includes the total value of input tax that is recoverable for the tax period.
It includes the “Payable tax” for the tax period.
Box 15 is if you want to make a request for a refund. After reviewing the application and confirming, click the “Submit” button on the right corner, and your VAT 201 form will be submitted.
Process for Filing VAT Returns in UAE
Do you have to file VAT returns through VAT 201 form, but don’t know where to start? Don’t worry, here is a detailed process for filing VAT returns in the UAE:
- Sign in to Federal Tax Authority e-portal using your registered username and password.
- After signing in, select the option of “VAT 210 Form” – New VAT return option under the e-services section.
- Fill the details of standard-rated supplies.
- Check for zero-rated supplies.
- Check for exempt supplies.
- Check out supplies that come under reverse charge provisions.
- Check out standard rated expenses
- Calculate due tax or recoverable tax for the period.
- Refund of excess recoverable tax.
- After submitting the VAT return form, you will get a confirmation email from the FTA.
Also, read “How to File VAT Return in UAE and Pay VAT” for more information and details on VAT 201 Form.
Get VAT Consultancy Today!
This is everything you need to know about VAT 201 form as you can tell by looking at the form and all its fields, that it can be tricky for some people. Do consider consulting VAT services company in UAE for a better understanding of each field to make sure all the values on the form are a correct representation of your business. Do remember that VAT return is to be filed every quarter, therefore, reach out to experts who can help you submit the VAT 201 form.