Once you are registered for VAT in the UAE, filing returns becomes a regular, recurring obligation — not a one-off. For each tax period you have to tell the Federal Tax Authority how much VAT you charged, how much you can reclaim, and pay the difference, all through the EmaraTax portal. Done properly it is routine; done late or carelessly it brings penalties and refund delays. This guide covers what a VAT return is, when it is due, how the amount you owe is calculated, the exact steps to file, and the mistakes that catch businesses out.
What is a VAT return?
A VAT return — filed on Form VAT201 — is a periodic summary of your VAT for a tax period. It reports the VAT you charged on sales (output VAT) and the VAT you paid on business purchases and expenses (input VAT), and works out the net amount payable to, or recoverable from, the FTA. You file it online in EmaraTax, and you must file even for a period with no sales or purchases — that is a nil return, and skipping it still counts as a missed filing.
How often do you file, and when is it due?
The FTA assigns each business a tax period. Most businesses file quarterly (every three months); larger businesses — broadly those with high annual turnover — may be assigned monthly periods. You can see your tax periods in EmaraTax.
The deadline is the same for everyone: your VAT return must be submitted, and any VAT due must be paid, within 28 days of the end of the tax period. For a quarter ending 31 March, that means filing and paying by 28 April. If the 28th lands on a weekend or public holiday, the deadline moves to the next business day. Note that the payment must reach the FTA by the deadline — not just be initiated — so allow time for bank transfers to clear.
How the VAT you owe is calculated
The core of the return is a simple subtraction:
| Element | What it means |
|---|---|
| Output VAT | The 5% VAT you charged on your standard-rated sales during the period |
| Input VAT | The VAT you paid on business purchases and expenses that you are entitled to recover |
| Net VAT payable | Output VAT minus recoverable input VAT — the amount you pay the FTA |
| Net VAT refundable | Where input VAT exceeds output VAT — you can request a refund or carry the credit forward |
The VAT201 also asks you to break down standard-rated sales by emirate, and to report zero-rated supplies, exempt supplies, supplies subject to the reverse-charge mechanism, and imports. Getting input VAT right matters most: you can only recover VAT that relates to taxable business activity and that you hold a valid tax invoice for, and certain costs (such as some entertainment and personal expenses) are blocked from recovery.
How to file your VAT return on EmaraTax — step by step
- Log in to the FTA's EmaraTax portal (eservices.tax.gov.ae) and select the taxable person whose return you are filing.
- Open the VAT tile and find the VAT return for the open tax period — it appears once the period has ended.
- Complete the VAT201 boxes: standard-rated sales by emirate, zero-rated and exempt supplies, reverse-charge and imports, and your recoverable input VAT.
- Check the calculated net VAT payable or refundable that EmaraTax produces from your entries.
- Review everything against your accounting records, confirm the declaration, and submit the return.
- Pay any VAT due through EmaraTax — for example by GIBAN bank transfer or card — making sure the payment clears by the 28-day deadline.
- Save the submission and payment confirmations for your records.
Penalties for filing or paying late
Missing the deadline is expensive, and there are separate penalties for late filing and late payment:
- Late filing of the return currently carries an administrative penalty of AED 1,000 the first time, rising to AED 2,000 if you file late again within 24 months.
- Late payment of the VAT due currently triggers a penalty on the unpaid tax — a percentage applied immediately, with further monthly penalties accruing on the outstanding amount up to a cap. Because the payment penalty is a percentage, a large VAT bill paid late can become costly quickly.
- Errors above a set threshold should be corrected through a voluntary disclosure rather than ignored — fixing a mistake yourself is far better than the FTA finding it.
VAT return filing is straightforward when your records are in order and you respect the 28-day deadline — and a recurring source of penalties when they are not. If you would rather have your returns prepared, checked, and filed correctly each period, our team can take it off your hands.
Key takeaways
- Every VAT-registered business must file a VAT return (Form VAT201) for each tax period, even if there was no activity — a nil return is still required.
- Most businesses file quarterly; larger businesses may be assigned monthly periods. The FTA sets your tax period, and you can see it in EmaraTax.
- The return is due — and any VAT must be paid — within 28 days of the end of the tax period; if the 28th falls on a weekend or holiday, it moves to the next business day.
- The VAT you pay is output VAT on your sales minus the recoverable input VAT on your purchases; if input exceeds output, you are in a refund or credit position.
- Filing or paying late triggers penalties — currently AED 1,000 for a first late return (AED 2,000 if repeated) plus payment penalties on unpaid tax — so the deadline is worth protecting.
- Rates, deadlines, and penalties are set by law and refined over time — treat the figures here as the current position and confirm with the FTA before acting.