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VAT Return

VAT Return

Filing VAT return under the VAT regime is crucial as non-compliance and delay will result in penalties and affect your compliance rating and timely refunds.

What is the purpose of filing return?

The major purposes of filing a return are :

  • Mode of transfer of information to tax administration
  • Compliance verification program of tax administration
  • Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period
  • Providing necessary inputs for taking policy decision
  • Management of audit and anti-evasion programs of tax administration.
Who needs to file a VAT Return?

A VAT return is usually filed by:

  • Taxable person- Any registered person or obliged to register for tax purposes, who makes supply of taxable goods or services or a deemed supply (excludes exempt supply)
  • Taxable trader- A taxable person whose main activity is distribution of water and all types of energy as specified in executive regulation
  • Importer of taxable goods or taxable services
  • A registrant who may wish to recover the recoverable tax incurred before tax registration where, (a) Supply of goods and services, import of goods by the person prior to the date of tax registration.
  • A registrant who receives the goods which are specified in Clause3 of article 48 under reverse charge mechanism.
What are the goods specified in clause 3 of article 48?

If a Registrant makes a Taxable Supply in the State to another Registrant of any crude or refined oil, unprocessed or processed natural gas, or any hydrocarbons, and the Recipient of these Goods intends to either resell the purchased Goods as crude or refined oil, unprocessed or processed natural gas, or any hydrocarbons, or use these Goods to produce or distribute any form of energy, the following rules shall apply:

  • The Registrant making the Supply shall not charge Tax on the value of the supply of the Goods referred to in this paragraph.
  • The Recipient of the Goods shall calculate the Tax on the value of the Goods supplied thereto and shall be responsible for all applicable Tax obligations and for calculating the Due Tax in respect of such supplies
When are registered businesses required to file VAT returns?

Taxpayers must file VAT returns with the FTA on a regular basis (quarterly or for a shorter period, should the FTA decide so) within 28 days from the end of the tax period in accordance with the procedures specified in the VAT legislation. The tax returns shall be filed online using e-services.


Return Period

AT Return Due Date

Quarter

January to March 2018

28th April, 2018

Q1

April to June 2018

28th July, 2018

Q2

July to September 2018

28th October, 2018

Q3

October to December 2018

28th January, 2018

Q4

What is the duration of tax period for filing returns?

The tax period is a specific period of time for which taxable person has to calculate and pay the tax.

  • Taxable persons are required to file returns on a quarterly basis.
  • Large entities/Large business houses are expected to file returns on monthly basis.
When should the return be filed?
  • The return has to be filed by the taxable person for every quarter within 28 days from the end of the quarter.
  • In case of large business entities, the return has to be filed for every month within a month following the tax period.
What is the last date for filing a return if the due date falls on a public holiday?

If the due date falls on a public holiday, the due date for filing a return shall be extended to first business day thereafter.

What are the components tax returns comprise of?
  • All the supplies made and received during the tax period
  • Tax Registration Number
  • Name of supplier
  • Value of material etc.., as prescribed by concerned authority
What happens if the return is not filed within the due date?

Late filing of return may attract penalty.

Can we make corrections to previous period returns?

Correction of errors made in previous period return can be carried out. A taxable person must disclose this error to FTA within 30 days of becoming aware of this error and include the tax return to be submitted immediately after noticing and correcting the error.

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