VAT (Value added Tax) is set to implement in Dubai in Jan 2018. The govt, as well as several personal institutions, are releasing new data frequently to assist people and businesses get familiar with the new tax system as smoothly as possible. Among several things VAT connected, one among the foremost important is VAT tax returns.
As per the normal VAT standard, the returns are filed quarterly, i.e., once in three months. The VAT returns are going to be filed online on the official portal of the Federal tax authority. Businesses that are trying forward to creating a sleek transition to the new tax system should get familiar with the return filing procedure under VAT in Dubai.
What is a VAT Return and why is it important?
A VAT return is that the formal document/statement of the VAT liability of a taxpayer for a selected tax period. It contains the small print of VAT liability of the person, tax paid by him, etc. for a tax month or quarter.
VAT returns are vital as a result of they contain the records of the tax paid by the users in a very given period. It’s a proper document that works as a proof that the sure party has paid their tax. The govt. needs these records to keep up a correct taxation system wherever each individual pays his/her liabilities on time. These are utilized by the tax authorities for activity auditing and different activities as per the tax laws. Your VAT come contains the summary of your total earning and therefore the value-added tax paid by your on it earning for that exact period.