VAT Filing Do’s and don’ts

VAT Filings are different in every country. VAT filing in UAE is different from that of India. Value Added Tax or VAT is generally paid by the producers who are producing services and goods for the government. VAT is identified as a system of taxation of multiple levels. This infers that all producers have to pay taxes at all production levels. Since you are paying VAT, you need to file that deceleration. A vat filing or VAT return is a form that the VAT payer files, and that has to be done four times every year. Hence if you are a resident of Dubai, you have to go for VAT return filing Dubai. You can also seek the help of VAT consultants in Dubai. But, if you do not register yourself as a VAT payer, you are not entitled to file vat return. This VAT return calculates the amount you have paid excess and is subjected to reclamation. Now, there are sure Dos and Don’ts that you need to follow in VAT filing. These are:

Dos in VAT Filing

  •  You must keep and know the calculation of your VAT. This will enable you to submit VAT returns digitally.
  • You should record your monthly turnover since you might have to face severe penalties if you register late.
  • You must let HMRC know when your business is undergoing remarkable alterations. You should inform the HMRC within thirty days of the alterations.
  • You need to maintain your VAT records for the past six years since the law can demand to see the records.
  • You need to maintain your VAT invoices since these invoices will authorize you to claim them back on specific purchases.
  • You should charge VAT on the supplies of your staff.
  • You need to apply VAT to purchase any vehicle or equipment that you are part of exchanging or selling.
  • You need to apply VAT on private motor fuels as well. You need to charge it using the appropriate scale.

Don’ts in VAT Filing

  • You cannot claim the VAT you have paid to buy any motor car. The vat for purchasing motor cars is not recoverable in most cases.
  • You cannot claim VAT for goods used for private services.
  • VAT cannot be claimed on the expenditure on entertainment purposes for your business. However, you can claim VAT on this ground only if your customer is from overseas.
  • You cannot forget to keep a VAT account even if you are merged with another company. You need to maintain separate VAT documentation.
  • Don’t file your VAT returns late.
  • You cannot claim VAT on the transfer of your business.

Bottom Line

Hence you must follow these Dos and Don’ts before filing your VAT. If you are a UAE resident and thinking of how to file VAT return in UAE, here is the solution for you. First, get your VAT registration UAE and log into Prophetic Business Solutions. We provide top-notch services among the VAT Consultants in UAE.

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