IF you’re one of those businesses or entrepreneurs who dares to file their own business VAT returns yourself, make sure you read the below common errors we see all our clients make (before they work with us). Meanwhile, if you’re looking for accurate, trustworthy and consistent UAE VAT return filing, contact us.

1 Make sure to enter the sales in the right emirate

A common mistake we notice is that business owners classify their standard-rated sales based on the location of the customer. However, it is based on the business fixed establishment

Fixed Establishment - Any fixed place of business, where you conduct business regularly & where sufficient human and technological resources are available to do business. An easy way to think of it is where you do business, not where your customer is located or does business.

2 Make sure to include zero-rated and exempt sales -

We have seen many companies file the output and input VAT (the VAT payable and receivable) correctly, but do not mention the zero-rated and exempt sales. Just because these transactions do not have a VAT impact does not mean you do not need to disclose it. It is important to identify zero-rated and exempt sales correctly and disclose them correctly in the return submission.

3 Prepare an invoice-wise working of the return -

It is important to maintain a detailed invoice-wise working for each return. If there is an audit in the future done by the FTA, they will request these details.

The FTA will provide only 5 working days to respond to their queries. So as to not scramble at the last minute, it is better to prepare this working everytime the return is filed.

4 Claiming VAT on expenses that are not allowable -

You have to be very careful on not claiming input VAT on expenses that are not claimable. For example, entertainment expenses and purchase or vehicles (in most cases).