UAE VAT Registration - Beaufort Associates

3Jul2025

VAT Reverse Charge Mechanism in Dubai: Common Mistakes & How to Avoid Them

Did you know that over 60% of UAE businesses make errors when applying the Reverse Charge Mechanism (RCM) in VAT filings? With Dubai’s booming import sector and cross-border trade, understanding RCM is no longer optional; it’s a legal necessity to avoid hefty fines.

Since its introduction in 2018, the Reverse Charge Mechanism UAE VAT system has been a game-changer for businesses dealing with foreign suppliers. But in 2025, with stricter Federal Tax Authority (FTA) audits and rising penalties, even small mistakes can cost thousands.

This guide breaks down RCM in simple terms, highlights common pitfalls, and provides actionable tips to keep your business compliant.

What Is the Reverse Charge Mechanism in UAE VAT?

The Reverse Charge Mechanism (RCM) shifts VAT payment responsibility from foreign suppliers to UAE-based buyers. Normally, suppliers charge VAT, Under RCM, the purchaser is responsible for accounting for VAT on imports or certain domestic transactions.

Do you need VAT Consultancy Support?

Contact us to schedule a free consultation to learn how we can help you with VAT in Dubai for your business.

When Does RCM Apply?

RCM applies in three key scenarios:

Imports from outside the UAE -If your supplier isn’t VAT-registered in the UAE.
Purchases from designated zones – Some UAE free zones are treated as “outside” for VAT purposes.
High-value goods – Gold, diamonds, oil, and hydrocarbons often fall under RCM rules.

Example of RCM in Action

A Dubai company imports AED 50,000 worth of electronics from Germany. Instead of the German supplier charging 5% VAT (AED 2,500), the Dubai firm:

Records AED 2,500 as output VAT (owed to the FTA).
Claims AED 2,500 as input VAT (if eligible).
Net cash flow impact: Zero (if fully reclaimable).

Looking for a Professional Tax Consultant in Dubai?

Common Mistakes Businesses Make with RCM

The Reverse Charge Mechanism (RCM) is a VAT rule in Dubai that shifts the responsibility of paying VAT from foreign suppliers to UAE-based buyers. While it simplifies things for overseas sellers, many businesses make costly mistakes when applying RCM. Consulting a VAT consultant in Dubai can help ensure accurate application and compliance, saving your business from potential fines and complications.

Here’s a breakdown of 5 common RCM errors and how to avoid them, explained in easy, natural language.

1. Assuming Foreign Suppliers Handle VAT (Failing to Apply RCM on Imports)

Mistake: Many businesses think their foreign suppliers will charge and pay VAT. But under RCM, the buyer (your business) must self-account for VAT on imports. Missing this leads to underreported taxes and fines up to AED 15,000.

Why it happens?

Lack of awareness about RCM rules.
Presuming that VAT functions the same as it does in domestic transactions.

How to Avoid:
✔ Train your finance team on when RCM applies (e.g., imports, certain free zone purchases).
✔ Use accounting software (like QuickBooks or Zoho Books) that flags RCM transactions automatically.

2. Messing Up VAT Accounting Entries

Mistake: Some businesses:

Forget to record output VAT (the VAT they owe to the government).
Double-count input VAT (claiming the same VAT twice), which raises audit risks.

Example of a Correct RCM Entry:

Transaction	Debit (AED)	Credit (AED)
Import Purchase	50,000	–
Output VAT (5%)	–	2,500
Input VAT Claim	2,500	–

Why does it happen?

Confusion between forward charge (supplier charges VAT) and reverse charge (buyer pays VAT directly).

How to Avoid:
✔ Follow the FTA’s VAT return format (Box 1 for output VAT, Box 4 for input VAT).
✔ Get help from a VAT consultant if unsure.

3. Wrongly Classifying Zero-Rated vs. Standard Supplies

Mistake: Not all imports require RCM. Some are zero-rated (0% VAT) or exempt (no VAT at all). Misclassifying them leads to errors.

Examples:

Zero-rated: International transport, exported goods.
Exempt: Residential property leases, certain financial services

Why it happens?

Not checking the FTA’s VAT classification guide.
Assuming all imports follow the same VAT rule.

How to Avoid:
✔ Review the official FTA list of zero-rated/exempt supplies.
✔ Ask a tax advisor for complex cases (e.g., mixed-use goods).

4. Poor Record-Keeping (Missing Invoices or Customs Docs)

Mistake: The FTA requires businesses to keep records for 5+ years (15 years for real estate). Missing documents (like supplier invoices or customs forms) can trigger audits.

Why it happens:

Using manual filing systems (easy to lose paperwork).
Not tracking RCM-specific documents.

Compliance Checklist:

Supplier invoices (must state “Reverse Charge Applicable”).
Customs declarations (proof of import). Payment receipts (to match transactions).

How to Avoid:
✔ Use cloud accounting software (e.g., Xero) to store digital records.
✔ Conduct quarterly internal audits to catch missing files early.

5. Ignoring Designated Zone Rules (Like JAFZA or DMCC)

Mistake: Some UAE free zones (e.g., JAFZA) are treated as “outside the UAE” for VAT. Purchases from these zones require RCM, but many businesses miss this..

Why it happens?

Assuming all UAE transactions follow standard VAT rules.
Not checking if a free zone is a “designated zone” under RCM.

How to Avoid:

✔ Verify if your supplier is in a designated zone.
✔ Update your procurement team on RCM-free zone rules.

Case Study: How a Dubai Tech Firm Saved AED 12,000

Problem: A Dubai IT company imported AED 240,000 in servers from China but didn’t apply RCM. The FTA flagged the omission and issued an AED 12,000 fine.

Solution: The firm:

Hired a VAT consultant to amend past returns.
Implemented automated RCM tracking in their ERP system.
Saved AED 12,000 in future penalties by filing correctly.

Avoid costly errors and stay compliant—consult our Beaufort associate’s team today to ensure your business handles RCM the right way

FAQ: Reverse Charge Mechanism UAE VAT

1. Do I Need to Pay VAT Under RCM If My Supplier Is GCC-Based?

Yes, unless the supplier is VAT-registered in the UAE. GCC suppliers follow similar RCM rules.

2. How Do I Report RCM in VAT Returns?

Box 1 (Output VAT): Enter the RCM VAT due.
Box 4 (Input VAT): Claim the same amount (if reclaimable).

3. Can I Reclaim RCM VAT Immediately?

Yes, if the expense is business-related. Personal or entertainment costs are non-reclaimable.

4. What’s the Penalty for RCM Errors?

Up to AED 15,000 for underreporting, plus 5% monthly interest on unpaid tax.

5. Does RCM Apply to Services from Abroad?

Yes! Digital services, consulting, and software subscriptions often fall under RCM

The information provided herein is for the general information of the user and is provided in good faith. We make no representation or provide warranty of any kind, express or implied, regarding the adequacy, suitability, validity, or completeness of the information. Our advice in regard to UAE corporate tax and value added tax is based on our understanding of the relevant laws and the regulations issued. We cannot be held responsible for new regulations and/or interpretation of existing regulations by the FTA that is not consistent with our advice. Under no circumstance shall we have any liability to any user of this information or to third parties for any loss or damage of any kind incurred as a result of the use or reliance of this information.

21May2025

2025 UAE VAT Penalties: 5 New FTA Rules That Could Cost Your Business AED 100,000+

Introduction: Why This Matters to Your Business

The UAE’s Federal Tax Authority (FTA) has introduced new VAT compliance rules in 2025—and businesses that don’t follow them risk heavy fines, surprise audits, and cash flow problems.

Many companies lose thousands because they don’t know about these 5 hidden FTA rules. This guide explains them in simple terms, with step-by-step solutions to avoid penalties.

What You’ll Learn:
✅ 5 new VAT rules that most businesses miss (with real examples)
✅ Exact penalties for each mistake (AED 1,000 to AED 100,000+)
✅ Free tools to check if your business is at risk
✅ 2025 deadline alerts (save money by acting now)
✅ Pro tips from UAE tax experts

1. Incorrect Export VAT Claims (50% Penalty on Unpaid Tax)

What Changed in 2025?

The FTA now requires extra proof for zero-rated exports.
If you can’t provide the right documents, your exports become standard-rated (5% VAT).

Common Mistakes:
❌ Assuming all exports are automatically VAT-free
❌ Not keeping shipping records, contracts, or customs declarations
❌ Wrongly classifying services (like Marketing services) as “exports”

Real Example:
A Dubai trading company was fined AED 75,000 because it couldn’t prove its AED 150,000 export to Saudi Arabia.

How to Avoid This Penalty

✔ Keep 3 key documents for every export:

Customs declaration (from UAE ports)
Commercial invoice (with buyer’s details)
Transport proof (bill of lading or airway bill)

Deadline Alert: Update past export records before December 31, 2025, to avoid retroactive fines.

Do you need Tax Consultancy Support?

Contact us to schedule a free consultation to learn how we can help you with VAT & Corporate Tax Support for your business.

2. Virtual Asset VAT Reporting (AED 10,000 per Mistake)

New 2025 Rule:

Cryptocurrency & NFT trades are now VAT-exempt (but you must still report them).
Many businesses wrongly charged VAT on crypto before 2025—now facing audits & fines.

Real Example:
A crypto exchange paid AED 40,000 in penalties for charging 5% VAT on Bitcoin trades in 2024.

How to Fix This

✔ If you charged VAT on crypto/NFTs:

File a Voluntary Disclosure (reduces fines by up to 70%)
Refund customers if possible
✔ Keep blockchain transaction logs for 5+ years

Pro Tip: Use Koinly or CoinTracking to auto-generate VAT reports.

Looking for a Professional Tax Consultant in Dubai?

3. Late Tax Record Updates (AED 10,000 Fine After March 31, 2025)

Critical Deadline:

The FTA gave businesses a grace period (Jan 2024–Mar 2025) to update:
- Company addresses
- Trade license activities
- Tax registration details
After March 31, 2025, fines apply for outdated info.

Real Example:
A Dubai salon was fined AED 10,000 because they didn’t update their new branch location in EmaraTax.

How to Avoid This

✔ Log into EmaraTax and check:

Is your business address correct?
Does your license activity match your VAT filing?
Are authorized signatories updated?

4. Missing VAT on Free Samples/Gifts (AED 1,000–5,000 per Item)

2025 Rule:

If you give free samples or gifts worth over AED 500/year per client, you must charge VAT.
Common mistakes:
- Promotional freebies for customers
- Employee rewards (like Eid gifts)
- B2B free samples

Real Example:
A perfume company was fined AED 15,000 for not charging VAT on free testers given to influencers.

How to Comply

✔ Track all free items in your accounting software.
✔ Issue a “deemed supply” invoice for anything over AED 500/year per recipient.

Pro Tip: QuickBooks and Zoho Books can auto-calculate VAT on gifts.

5. Wrong VAT on Financial Services (AED 3,000–5,000 per Error)

New 2025 Exemptions:

Investment fund management = VAT-free
Crypto transfers = Exempt (but must be reported)

Red Flags for Audits:
❌ Charging VAT on exempt services (like loans)
❌ Not reporting crypto transactions

Real Example:
A Dubai forex broker paid AED 25,000 in fines for charging VAT on exempt currency trades.

How to Fix Past Mistakes

✔ Review 2022–2024 VAT returns for financial services.
✔ If you charged VAT by mistake:

Refund clients (if possible)
File a Voluntary Disclosure

Struggling with VAT penalties? Get a FREE 30-minute consultation with our VAT Consultant to avoid fines.

3 Expert Strategies to Avoid Fines

1. Use the FTA’s Penalty Waiver (Before March 2025)

The FTA is automatically waiving penalties for businesses that:
- Update tax records by March 31, 2025
- File overdue returns before June 30, 2025

Action Plan:
✔ Log into EmaraTax → Check for pending updates.
✔ File late returns ASAP (fines increase daily).

2. Automate VAT with AI Tools (90% Fewer Errors)

Best Software for UAE Businesses:

Tool	Best For	VAT Features
QuickBooks	SMEs & Startups	Auto-calculates VAT, FTA-approved
Xero	E-commerce & Trading	Multi-currency VAT reporting
Zoho Books	Professional	Free for <1,000 transactions/month

Pro Tip: AI tax tools flag errors before you submit returns.

3. Get a Free VAT Health Check

Download 2025 VAT Compliance Checklist to audit your business:

Risk Area	What to Check
Exports	Do you have shipping/customs proofs?
Crypto Transactions	Did you charge VAT by mistake?
Free Samples/Gifts	Tracked anything over AED 500/year?
Financial Services	Correctly classified as exempt?
Tax Records	Updated in EmaraTax?

Key Takeaways

✅ Export VAT rules are stricter—missing docs = 50% penalty.
✅ Crypto trades are exempt but reportable—errors cost AED 10,000+.
✅ Update tax records before March 31, 2025 (or pay AED 10,000).
✅ Free gifts over AED 500/year? Charge VAT or face fines.
✅ Financial services VAT exemptions expanded—review past filings.

Need Help?

If your business faces VAT penalties, our experts can:

File Voluntary Disclosures (reduce fines by 70%)
Automate VAT compliance (avoid future errors)
Negotiate FTA waivers (for late submissions)

Book a Free VAT Consultation: visit now: Beaufort Associates

8May2024

Are you Prepared for the VAT Audit? Tips for a Stress-Free Compliance

All transactions must be recorded with complete information, including TRN, invoice number, customs declarations, revenue and expense figures, along with the corresponding VAT amounts.

Several entities mistakenly consolidate various transactions and document them as a single line item.

Since January 2018, there has been constant talk about the eventual occurrence of VAT audits. However, following the introduction of Corporate Tax in January 2022, attention swiftly shifted from VAT to Corporate Tax. Various CFOs/Tax Heads overlooked certain amendments in the VAT Law in December 2022, granting the Federal Tax Authority the authority to audit a taxpayer for an extended period of four years if the audit notice is issued before the conclusion of the fifth year.

As a result of the extension of the limitation window, many taxpayers are receiving VAT audit notices.

Depending on the complexities, revenue, size, and industry, taxpayers are being issued one of three types of notices:

Covering all tax periods from January 2018 to December 2020
Covering all tax periods from January 2018 to December 2018
Encompassing a sample tax period between January 2018 and December 2020

The audit notification includes a questionnaire that covers fundamental details such as accounting system information, tax advisor details, supplies provided on a free-of-charge basis, bad debts, etc.

Additionally, a transaction data template is provided to capture comprehensive line item details related to supplies (both local and exports), procurements (both local and imports), out-of-scope supplies, etc.

All transactions must be recorded with complete information, including TRN, invoice number, customs declarations, revenue and expense figures, along with the corresponding VAT amounts.

Many entities commonly make the error of consolidating multiple transactions into a single line item, particularly with petty cash expenses. This recording method is incorrect from a VAT perspective.

Looking for VAT Consultant In UAE ?

Contact us to schedule an initial free consultation and learn how we can help you get valuable insight into your company’s performance and position!

VAT Ledgers

Alongside detailed transaction-wise information, submissions must include financials, trial balance reconciliations, group structures, and revenue listings. Another common mistake involves preparing a reconciliation solely for the VAT ledgers. In addition to the ledgers, details of the revenue declared in the financials must be provided.

The purpose is to assess whether the revenues recorded in the VAT return align with those in the financial records.

If discrepancies arise, reconciliations are necessary, involving the segregation of accrued revenue, out-of-scope income, etc., from the amounts disclosed in the VAT return. This substantial task is required for each tax period, ultimately aligning with the audited financials.

In the case of VAT-grouped TRN, this activity must be extended for each taxable entity. The accurate reporting of revenue not only affects the output tax liability but also influences the input tax apportionment for each tax period.

It’s worth noting that, in addition to requesting general information, the FTA is seeking industry-specific details. For instance, a taxpayer involved in real estate is asked to provide beneficial ownership details of infrastructure projects, a list of owned land, ongoing development projects, and details on off-plan units sold.

This information aids the tax auditor in analyzing transactions and the associated tax treatments.

For example, a situation might arise where one entity owns the land, while another entity is responsible for constructing infrastructure on that land. The second entity may be recovering input VAT on construction expenses, leading to complexities such as deemed supply from one entity to another or determining ownership of the infrastructure.

Corresponding Tax Implications

Another consideration is whether the initial supply occurred within three years of the completion date, introducing corresponding tax implications.

The concept of the completion date itself is a separate topic for discussion. Lastly, debates persist over scenarios in which entities operate as disclosed or undisclosed agents. All these situations result in varied tax treatments with retrospective implications.

The FTA has consistently encouraged taxpayers to rectify past errors and ensure tax compliance. It has released over 100 public documents to offer guidance on various tax issues and aid taxpayers.

However, during a review, certain scenarios may arise that necessitate additional clarification. In such instances, taxpayers should prepare a position paper to request private clarification from the FTA.

This serves as another avenue for taxpayers to seek the FTA’s insights on a specific transaction. On average, the process of obtaining private clarification may take approximately 1-2 months in total, so it’s important to consider this timeframe when preparing for it.

The penalties for Voluntary Disclosures underwent a significant reduction (from approximately 300% to about 50%), contingent upon the year in which the error occurred.

Nevertheless, if the correction is made after the issuance of the audit notice, a higher penalty (up to 200%) might be enforced. The aim is to emphasize that taxpayers should prioritize careful attention to tax compliance and governance, rectifying any errors promptly. In cases of delay, the advantage of reduced penalties may not be applicable.

All the details specified in the notice need to be supplied within a span of 10 working days. Given the significant risk of penalties and the restricted timeframe for data submission, it is crucial for taxpayers to promptly evaluate their preparedness.

This involves identifying potential risks, rectifying previous mistakes, emphasizing thorough documentation and data management, and ultimately ensuring readiness for the VAT audit.

27Feb2024

UAE VAT: Can I Claim VAT On Old Invoices in UAE

Input tax, i.e. VAT paid on the purchase of goods and services is claimable in the tax return by set off against the output VAT collected on sales invoices. In the normal course, input tax should be recovered in the first tax period in which the following two conditions are satisfied:

the tax invoice is received; and
either the tax invoice has been paid in the period or the taxable person has decided to settle the invoice in a subsequent tax period – usually within six months after the agreed credit period.

Intention to settle the tax invoice:

Where the invoice has not already been settled within the tax period, it is pertinent to consider whether the taxable person has already decided to settle the invoice.

In this regard, merely receiving an invoice is not considered evidence of intention to settle.

However, if the tax invoice has been duly processed through the normal verification and approvals process of the taxable person and has been recorded in their accounting system, this is likely to be seen as a decision or intention to settle the invoice in due course.

It is important, however, to note that where an invoice has been received by the taxpayer, but has not been verified through the relevant processes to determine its validity and suitability for payment, it may not be possible to argue that the taxpayer has formed the intention to settle the invoice.

In such a case, the taxpayer should consider whether the input tax claim should be deferred to a later tax period.

In the case where a taxable person has received a tax invoice but has not yet decided regarding the settlement of the invoice, the Federal Tax Authority (“FTA”) may argue that the two conditions noted above – receipt of the invoice and the settlement of the invoice or the decision to settle – have not been satisfied.

In this case, therefore, it would not be appropriate to claim the input tax on such an invoice. In such cases, therefore, the input tax claim invoice should be made in such later tax period when the decision to settle has been taken.

UAE VAT: Can I Claim VAT On Old Invoices in UAE?

Article 55 (2) of the Federal Decree-Law No. (8) of 2017 on Value Added Tax specifically provides that where input VAT on a tax invoice has not been claimed during a tax period notwithstanding that the taxable person was entitled to make such a claim, the taxable person may claim the tax in the subsequent period.

Situations may arise where input tax has not been claimed in the tax period when the taxable person was entitled to claim nor in the subsequent period, as provided in Article 55 (2).

In such circumstances, the FTA has clarified that the unclaimed input VAT may be claimed through a Voluntary Disclosure.

Voluntary Disclosure:

A voluntary disclosure is a process where the taxpayer notifies the FTA of an error or omission in a VAT return.

A voluntary disclosure for claiming input VAT would be made by amending the input tax previously reported in the VAT return of one of the two tax periods during which the taxpayer could have claimed the input VAT.

Voluntary disclosures is normally required to be made within 20 business days of the taxpayer becoming aware of the error or omission. However, the FTA may accept late voluntary disclosures if the taxpayer is able to justify the delay by presenting an acceptable reason for the delay.

Do you need help with registering your business for VAT and getting the tax certificate?

Contact us to schedule a free consultation to learn how we can help you to register for VAT and ensure compliance with the VAT rules and regulations.

Claim for periods before Tax Registration?

A taxpayer that is newly registered for VAT can claim back VAT paid on goods and services purchased prior to its VAT registration, provided that the goods and services for which input VAT is being claimed were used to make supplies that would ordinarily give the right to input tax recovery.

However, input tax may not be recovered in the following cases:

The goods and services for which input tax is being claimed, were not used for making taxable supplies.
The input tax pertained to capital assets that were depreciated before the tax registration.
In case of services which were received more than five years prior to the tax registration.
where the goods were moved to another country.

Looking For Best VAT Consulting Service in Dubai?

UAE VAT Implementation Services: What We Offer

Do you think that managing VAT obligations is too challenging for your business?

Beaufort Associates provides VAT Implementation Services in the UAE. Our financial consultants are fully qualified and trained to assist you and guide you on the Do’s and Don’ts of the UAE VAT regime.

We offer professional VAT compliance support and advice tailored to your business needs. Our team can help you to comply with the VAT taxation rules and regulations.

Here is what we can do for you:

Help you to register with the FTA;
Advise you on your reporting deadlines;
Provide guidelines to avoid fines and penalties;
Provide you with accounting support to ensure proper recording of VAT;
Work with you to prepare your VAT tax returns;
Arrange to file the VAT tax return with the tax authorities:
Assist in filing for a Voluntary Disclosure:
Assist in claiming a refund due to you
Assist in claiming VAT refund for new residences for UAE Nationals.

We can also assist with corporate tax consulting, accounting and bookkeeping, audit and a host of other services.

If you need help with any of the above services, for your business in the UAE, feel free to contact us today and request a free initial consultation. We would be glad to assist you.

27Feb2024

VAT Return in UAE: Questions Answered

Do you have questions about VAT return in UAE? In this article, you’ll find all the essential information about the VAT return process in the UAE.

What Is VAT Return?

At the end of each tax period, a tax registered person must submit a VAT return to the FTA. It is a report that summarises the value of the supplies and purchases a taxable person has made during the tax period and shows the taxable person’s VAT liability.

A tax return is a written statement that is submitted periodically. It states the details and calculations of tax liability or refund that are to be paid to or received from tax authorities.

If the output tax exceeds the input tax amount, you must pay the difference to the FTA. And if the amount of input tax exceeds the amount of output tax, a taxable person will have excess recoverable input tax. Then that person will be able to set it off against subsequent payments due to the FTA or get a refund from the FTA.

VAT Return Filing

So how can you file a VAT return? VAT return filing must be done online through the FTA portal: eservices.tax.gov.ae. But before you file the VAT return form on the portal, you should make sure you have met all the tax return requirements.

Taxable businesses must file VAT returns with FTA on a regular basis. Usually, they must do it within 28 days of the end of the tax period defined for each type of business. A tax period is a specific time for which the payable tax must be calculated and paid. It differs for businesses of different sizes.

If a business has an annual turnover below AED150 million, the standard tax period is every quarter.
If a business has an annual turnover of AED150 million or more, the standard tax period is every month.

If you fail to file a tax return within the specified time frame, that will make you liable for fines as per the provisions of Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.

UAE VAT Return Format

The details and data that must be included in the VAT return for the purpose of tax are specified in the UAE VAT executive regulations. All the details that are required for VAT Return must be prepared in accordance with the UAE VAT Return format issued by the authority.

The VAT return form is at a summary level or a consolidated level. The registered person has to enter the following consolidated details of total supplies:

both purchases and sales
output VAT collected on supplies
eligible input VAT paid on purchases
the total tax due.

The form also includes details about the name, address, and tax registration number (TRN) of the registrant as well as the VAT Return period and the due date of submission and the tax period. These details are applicable to all VAT registrants and are pre-populated in the online form. In addition to the above-mentioned information, the return format also consists of other additional details:

Supplies subject to reverse charge provisions
Zero rated supplies
Exempt supplies
Goods imported into the UAE
Profit Margin Scheme applicability
Tax Refunds for Tourists Scheme

The registrant may save the online form as a draft and when all the required information has been satisfactorily entered, they may submit the form by clicking the “Submit” button.

How to Submit VAT Return in UAE

As we have already mentioned, VAT returns must be filed electronically through the FTA portal. A taxable person can submit the form themselves or delegate this right to another person who will do it on the taxable person’s behalf. That can be a tax agent or a authorized representative.

So how to submit a VAT return in UAE? To access the VAT return form, you should login to the e-Services portal using your registered username and password. Then you will need to navigate to the option to open your VAT return and fill in all the required details. When you finish, you have to click Submit. After submitting the return, you will receive an e-mail from the FTA confirming the submission of the VAT return form. Finally, you have to pay the due tax.

Dealing with VAT is a tedious, complex, and a rather time-consuming process. And you should remember that taxable businesses should keep their books in a well-organized manner to avoid penalties.

If you find VAT return too challenging, you may need professional guidance.

Contact us to schedule a free consultation to discuss how we can help you to establish a VAT-compliant accounting system.

VAT Return in UAE: Learn How We Can Help You

Beaufort Associates can help you to manage VAT obligations for your business in UAE. You can rely on our team during every stage of the VAT return process. We can advise you on your reporting deadlines to ensure you can avoid fines and penalties. Our highly-qualified and experienced consultants will work with you to prepare your VAT tax returns and arrange the VAT return filing with FTA on time.

If you need professional guidance and support with managing the VAT aspects of your business in UAE, please contact us any time.

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Category Archives: VAT

VAT Reverse Charge Mechanism in Dubai: Common Mistakes & How to Avoid Them

What Is the Reverse Charge Mechanism in UAE VAT?

When Does RCM Apply?

Example of RCM in Action

Looking for a Professional Tax Consultant in Dubai?

Common Mistakes Businesses Make with RCM

1. Assuming Foreign Suppliers Handle VAT (Failing to Apply RCM on Imports)

Why it happens?

2. Messing Up VAT Accounting Entries

3. Wrongly Classifying Zero-Rated vs. Standard Supplies

4. Poor Record-Keeping (Missing Invoices or Customs Docs)

5. Ignoring Designated Zone Rules (Like JAFZA or DMCC)

Case Study: How a Dubai Tech Firm Saved AED 12,000

FAQ: Reverse Charge Mechanism UAE VAT

2025 UAE VAT Penalties: 5 New FTA Rules That Could Cost Your Business AED 100,000+

Introduction: Why This Matters to Your Business

1. Incorrect Export VAT Claims (50% Penalty on Unpaid Tax)

What Changed in 2025?

How to Avoid This Penalty

Deadline Alert: Update past export records before December 31, 2025, to avoid retroactive fines.

2. Virtual Asset VAT Reporting (AED 10,000 per Mistake)

New 2025 Rule:

How to Fix This

Pro Tip: Use Koinly or CoinTracking to auto-generate VAT reports.

Looking for a Professional Tax Consultant in Dubai?

3. Late Tax Record Updates (AED 10,000 Fine After March 31, 2025)

Critical Deadline:

How to Avoid This

4. Missing VAT on Free Samples/Gifts (AED 1,000–5,000 per Item)

2025 Rule:

How to Comply

5. Wrong VAT on Financial Services (AED 3,000–5,000 per Error)

New 2025 Exemptions:

How to Fix Past Mistakes

3 Expert Strategies to Avoid Fines

1. Use the FTA’s Penalty Waiver (Before March 2025)

2. Automate VAT with AI Tools (90% Fewer Errors)

3. Get a Free VAT Health Check

Key Takeaways

Need Help?

Are you Prepared for the VAT Audit? Tips for a Stress-Free Compliance

Depending on the complexities, revenue, size, and industry, taxpayers are being issued one of three types of notices:

VAT Ledgers

Corresponding Tax Implications

UAE VAT: Can I Claim VAT On Old Invoices in UAE

Intention to settle the tax invoice:

UAE VAT: Can I Claim VAT On Old Invoices in UAE?

Voluntary Disclosure:

Claim for periods before Tax Registration?

Looking For Best VAT Consulting Service in Dubai?

UAE VAT Implementation Services: What We Offer

Here is what we can do for you:

VAT Return in UAE: Questions Answered

What Is VAT Return?

VAT Return Filing

UAE VAT Return Format

How to Submit VAT Return in UAE

VAT Return in UAE: Learn How We Can Help You

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