PICPA DUBAI VAT WORKSHOP Dusit Thani Dubai 10 th November 2017

Transcription

1 PICPA DUBAI VAT WORKSHOP Dusit Thani Dubai 10 th November 2017

2 AGENDA 1 Online Platform 2 VAT Registration 3 VAT Return 4 Case Study VAT Return Filing 2

3 ONLINE PORTAL 3

4 CREATING A PROFILE ON THE FTA WEBSITE After filling in the information on this page, click Sign up. A validation would then be sent to the address you entered, just click the verification link and you are then registered 4

5 LOGGING IN TO YOUR PROFILE If you have already created a profile previously the please log on in this window If you don t have a profile yet, then please click register here 5

6 ONLINE PORTAL MY PROFILE 6

7 ONLINE PORTAL - DOWNLOADS 7

8 ONLINE PORTAL - PAYMENTS 8

9 ONLINE PORTAL - DASHBOARD 9

10 WHAT S NEXT? After submitting the online application, you will receive an acknowledgement on your registered address confirming the status of your application At the same time, if you go back to the your dashboard, you will see that the VAT textbox now shows something like this 10

11 VAT RETURN 11

12 What is a VAT return and why is it important? A VAT return is the formal document/statement of the VAT liability of a taxpayer for a particular tax period. It contains the details of VAT liability of the person, tax paid by him, etc. for a tax month or quarter. VAT returns are important because they contain the records of the tax paid by the users in a given period. It is a formal document that works as a proof that said party has paid their tax. The government needs these records to maintain a proper taxation system where each individual pays his/her tax liability on time. These may also be used by the tax authorities to facilitate auditing and other activities as per the tax laws. Your VAT return contains the summary of your total earning and the value-added tax paid by you on that earning for that particular period. VAT returns are to be filed online at the official portal of the Federal Tax Authority. According to the Ministry of Finance, said return will need to be filed no later than 28 days after the end of the tax period to which it pertains 12

13 PROCEDURES FOR FILING VAT RETURNS Visit the online portal of the Federal Tax Authority at tax.gov.ae Click the return filing option under the e-services section of the portal Log in using your TIN and password Fill in the VAT return form with the details of your business, transactions, tax liability, penalties (if any), etc. Upload the required documents, bills, etc. Verify the details filled by you and submit the form 13

14 CASE STUDY VAT RETURN FILING 14

15 CASE STUDY COMPLETING VAT RETURN Med Limited is a wholesaler of medicines and hospital equipment which are supplied on credit terms to hospitals and certain pharmaceuticals in Dubai, Abu Dhabi and Sharjah emirates of the UAE, although a small proportion is sold for cash. Most of the goods are sourced in the UAE, but some are imported from KSA and Qatar. Med Limited is VAT-registered and its VAT quarters run from January to March, April to June, July to September, and October to December. Most of the goods sold are standard-rated, but a few stock lines mainly certain medicines are zero rated. VAT return is submitted online. It is now the first week of April. The data for the January-March VAT return has been compiled. You have been asked to complete the VAT Control Account and prepare online VAT return. The data is taken from the manual accounting system and summarised in the next page. 15

16 CASE STUDY COMPLETING VAT RETURN Zero-rated sales Sales Day Book Summary in AED 000 Standard-rated sales VAT (5%) Total sales (standard-rated) January 3,000 15, ,750 February 2,000 21,600 1,080 22,680 March 2,700 22,700 1,135 23,835 TOTAL 7,700 59,300 2,965 62,265 Purchases Day Book Summary in AED 000 Zero-rated purchases Standard-rated purchases VAT (5%) Total purchases (standard-rated) January - 8, ,135 February - 12, ,915 March - 9, ,185 TOTAL - 30,700 1,535 32,235 16

17 CASE STUDY COMPLETING VAT RETURN Cash Books non-credit items in AED 000 Net VAT (5%) Gross From main cash book Cash sales (Jan-Mar) 4, ,145 Cash purchases (Jan-Mar) 3, ,675 From petty cash book Expenses (Jan-Mar) Additional information: - Med Limited s purchases and expenses in the period are all standard-rated; - Purchases within GCC for the period totaled AED 17.8 million, VAT due is AED 890K. - Med Limited has received credit notes from its suppliers with VAT impact of AED 69K; - Med Limited has issued credit notes to its customers with VAT impact of AED 59K; - The account of DXB Pharma FZE, a customer, has been written off as a bad debt. Bad debt relief of AED 50K may be claimed on the VAT return. 17

18 CASE STUDY COMPLETING VAT RETURN VAT control account summary of entries (in AED 000) VAT deductible: input tax Purchases day book less VAT impact of credit notes VAT payable: output tax 1,466 Sales day book less VAT impact of credit notes Cash book 175 Cash book 245 Petty cash 25 2,906 GCC purchases reverse charge Bad debt relief GCC purchases reverse charge 890 TOTAL INPUT TAX 2,606 TOTAL OUTPUT TAX 4,041 Less: TOTAL INPUT TAX (2,606) Equals: VAT due 1,435 18

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