TAX SERVICE
vat Filing
VAT Filing
Learn about
At the end of each tax period, VAT registered businesses or the ‘taxable persons’ must submit a ‘VAT return’ to Federal Tax Authority (FTA).
A VAT return summarizes the value of the supplies and purchases a taxable person has made during the tax period and shows the taxable person’s VAT liability.
Procedure
After registering under VAT/Excise, businesses are required to file periodic statutory declarations. VAT/Excise returns summarizing all the taxable transactions that the business has made in that specific period, have to be filed as per the tax periods stipulated by the FTA for each entity registered with the FTA. All the required information has to be recorded accurately on an ongoing basis. Further it is mandated for businesses to declare the VAT that has been charged on sales (output VAT). The VAT that has been paid (input VAT) by the company can be recovered, subject to the input tax recovery conditions provided in the relevant regulations.
Reminder
It is imperative that VAT/Excise returns are accurately compiled based on the underlying accounting records and must accurately reflect the amount that is due to/from the government. Any errors in filing statutory returns not only attracts fines and penalties but may also lead to loss of reputation.