Aren’t you aware of the deadline to submit your work? You know when and how to fulfill your tasks. However, you may overlook the need to set aside time for taxes. We agree that working with all the numbers on the sheet is tedious, but it is necessary. Calculating taxes is a time-consuming process. Let us simplify the tax filing process for you by breaking it down into a few simple steps. Why should you waste your time learning how to pay taxes by reading pages and pages of information?
Benjamin Franklin once said, “In this world, nothing can be said to be certain, except death and taxes.” Taxes are that much certain. So, let us address the elephant in the room and learn the process without much trouble.
Taxes in UAE
- Individuals in the UAE are not subject to income tax at present.
- Oil corporations and international banks, on the other hand, are subject to corporate taxes.
- Excise taxes are imposed on some commodities that are known to be damaging to human health or the environment.
- The majority of goods and services are subject to VAT.
- The United Arab Emirates is imposing a federal corporate tax on business earnings for the first time. The new federal tax of 9% on profit would take effect on June 1, 2023.
What is VAT?
VAT stands for Value Added Tax. At each stage of the manufacturing, distribution, and sale of an item, VAT is levied on the gross margin.
Read: How VAT works in UAE? An overview. https://www.simpleaccounts.io/2020/09/08/vat-in-uae/
How to file VAT?
After each tax period, every taxable person in the UAE is supposed to file a VAT return with the Federal Tax Authority (FTA). The standard tax period is three months, so it is necessary to file taxes every three months. Also, there are taxes that are calculated every month too.
- The VAT returns must be submitted online only. The services are available on the FTA portal, eservices.tax.gov.ae.
- Login to the portal using Registered Username and Password.
- A summary of your active tax registration with FTA will be displayed on the dashboard.
- Click on the VAT tab on the navigation bar.
- Click on the VAT201- New VAT Return
- A window opens with all the information including Tax Registration Number (TRN), address, etc.
- It will be followed by details like tax period dates, VAT period reference number, VAT submission date, and more. Check whether the details are accurate.
How to pay VAT liability?
- Click on the My Payments tab on the navigation bar in the eServices portal.
- The window opens with the amount to be paid as VAT liability. It will be a total of any VAT liability due and applicable administrative penalties.
- Enter the amount you wish to pay. You need not pay the whole amount at once. But, paying it after the submission date may attract penalties.
- Pay the amount via GIBAN, eDebit, or the e-Dirham payment gateway. A fee is a collected for the payment.
VAT returns filing is easy as pie. Do it yourself. Also, keep track of all your taxes under one roof.