UAE VAT returns are filed via the VAT 201 form on EmaraTax. Most businesses file quarterly; those with annual revenue above AED 150 million file monthly. The deadline is the 28th of the month following the tax period. Late filing penalty: AED 1,000 first time, AED 2,000 if repeated within 24 months. Late payment is calculated separately — under Cabinet Decision 129 of 2025 (effective 14 April 2026), late VAT payment is now 14% per annum, calculated monthly on the unpaid balance.
Quarterly or monthly: who files what?
FTA assigns your filing frequency based on declared annual turnover at registration. Above AED 150 million in taxable supplies → monthly. Below → quarterly. You can request a change in writing if circumstances shift.
Quarterly tax periods follow your registered cycle (Jan–Mar, Apr–Jun, etc., or staggered). Monthly periods are calendar months. Either way, the return is due by the 28th of the next month — including weekends or public holidays.
What goes into the VAT 201 form
VAT 201 is broken into seven sections covering output VAT, input VAT, reverse charge, and adjustments. The numbers must reconcile to your underlying tax invoices and customs records — not just to your accounting tool.
- Output VAT — standard, zero-rated, and exempt supplies, by emirate
- Imports & RCM — services and goods imported, reverse-charged
- Input VAT — VAT paid on purchases, with eligibility rules
- Adjustments — bad-debt relief, capital-asset adjustments (article 58)
- Net VAT due / refundable — the bottom-line result the FTA portal expects
Reconcile every cycle: total output VAT in 201 must match the sum of VAT on your tax invoices for the period. A 0.5% mismatch is enough to trigger an FTA query.
Deadlines and the cost of being late
Late filing and late payment are two different penalties — both can apply to the same return. Cabinet Decision 129 of 2025, effective 14 April 2026, simplified the late-payment regime.
File on time even if you can’t pay in full — the late-filing penalty is fixed and one-off (AED 1,000 / 2,000). Late-payment now accrues at 14% per annum (Cabinet Decision 129/2025) — much cleaner than the old 2%+4%/month regime that ran pre-14-April-2026.
| What triggered | Current penalty | When |
|---|---|---|
| Late filing (first time) | AED 1,000 (fixed) | Day after deadline |
| Late filing (repeat within 24 months) | AED 2,000 (fixed) | Each repeat occurrence |
| Late payment of VAT | 14% per annum, calculated monthly | From day after due date until paid |
| Incorrect return (first time) | AED 500 | On amendment or audit finding |
| Incorrect return (repeat) | AED 2,000 | Each repeat |
Claiming a refund vs carrying forward
When input VAT exceeds output VAT, the difference is refundable. You can either claim it on the same return or carry it forward to offset future liability.
Refund claims trigger an automatic FTA review. Most clean refunds land in the bank in 20–60 days. We’ve claimed back AED 1.2M+ for clients last year alone — most didn’t realise they had refundable balances accruing for quarters.
Reverse charge mechanism in your return
Imported services and goods are subject to RCM: you record both output and input VAT on the same line, with net-zero impact unless your sector has partial recovery rules. Common items missed:
- SaaS subscriptions paid to non-UAE vendors (Slack, Notion, Adobe)
- Marketing and consulting services bought from outside UAE
- Imported goods where VAT wasn’t collected at customs (low-value direct ship)
- Inter-company services from foreign parent / sister companies
Outsource your VAT returns to an FTA-registered agent
We file 7–10 days before deadline, claim every refund, and keep a 5-year audit trail. Fixed monthly fee.
Frequently asked questions
Where do I file my VAT return?+
On the FTA’s EmaraTax portal at eservices.tax.gov.ae. Returns are submitted as form VAT 201, with payment made via bank transfer or e-Dirham.
What is the filing deadline?+
The 28th of the month following the end of your tax period. If the 28th falls on a weekend or holiday, the deadline still applies — file before.
What if I have no transactions?+
You still must file a ‘nil return’ showing zero supplies. Skipping nil returns triggers the same AED 1,000 first-time / AED 2,000 repeat-within-24-months penalty as a substantive late filing.
Can I correct a filed return?+
Yes, via voluntary disclosure under article 10 if the error exceeds AED 10,000 net. Smaller errors can be adjusted in your next return.
Do I need a tax agent to file?+
No, the business owner or any authorised employee can file. Many SMEs use tax agents to avoid late penalties and ensure RCM and refunds are handled correctly.
What's the penalty for under-reporting?+
Up to 50% of the unpaid tax if discovered by FTA, plus interest. Voluntary disclosure brings this down to a fixed 5% + AED 1,000.