1. Filing Deadlines and Legal Obligations
Under Federal Decree-Law No. 8 of 2017 on Value Added Tax, taxable persons registered with the Federal Tax Authority (FTA) must file their VAT 201 return and remit taxes by the 28th day following the end of their designated tax period (monthly or quarterly).
2. Navigating Box 1 to 7: Standard-Rated Supplies by Emirate
The FTA requires standard-rated supplies (5%) to be reported according to the Emirate where the supply was made: Abu Dhabi (Box 1a), Dubai (Box 1b), Sharjah (Box 1c), Ajman (Box 1d), Umm Al Quwain (Box 1e), Ras Al Khaimah (Box 1f), and Fujairah (Box 1g). For fixed establishments, this is determined by the supplying branch; for retail or online sales, by the delivery location.
3. Zero-Rated (Box 4) vs. Exempt Supplies (Box 5)
Zero-rated supplies include commercial exports of goods and services outside the GCC implementing states, international transport, and certain educational/healthcare services. Exempt supplies include bare land sales, local passenger transport, and residential leases. Maintaining proper documentation (customs declarations, shipping bills) is mandatory to defend zero-rating during an FTA audit.
4. Recoverable Input Tax (Box 9 & 10) and Verification
To reclaim 5% input tax on expenses, you must hold an original Tax Invoice meeting all FTA Article 59 criteria, bearing your 15-digit TRN and legal corporate name. Disallowed input taxes (such as entertainment expenses and private motor vehicle costs) must be excluded.
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