In the United Arab Emirates, taxable businesses must file VAT returns with the Federal Tax Authority (FTA) on a regular basis, typically within 28 days of the end of the ‘tax period’ assigned to each type of business. A ‘tax period’ is a specific interval for which the payable tax is calculated and paid. The standard tax periods are as follows:
– *Quarterly* for businesses with an annual turnover below AED 150 million.
– *Monthly* for businesses with an annual turnover of AED 150 million or more.
The FTA may, at its discretion, assign different tax periods for certain types of businesses.
It is crucial for businesses to adhere to these timelines to avoid penalties. Failure to file a tax return within the specified time frame will result in fines, as stipulated by Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE. This resolution outlines the administrative penalties applicable for delays and other violations related to tax laws.
Ensuring timely filing not only helps businesses stay compliant but also avoids unnecessary financial penalties. Ideal System is here to assist you with all your VAT filing needs, providing expert guidance and support to ensure that your business remains compliant with UAE tax regulations.
