Most UAE businesses file quarterly. The return covers: Box 1 (standard-rated supplies), Box 2 (zero-rated supplies), Box 3 (exempt supplies), Boxes 4–8 (input VAT by category), and the net tax position. Returns are due by the 28th day of the month following the end of the tax period. Late filing penalty: AED 1,000 for the first offence, AED 2,000 for a repeat within 24 months. Late payment penalty: 2% of unpaid tax immediately, rising to 4% after seven days and 1% per day thereafter. The return must reconcile to your general ledger — a common audit trigger is a VAT return that cannot be traced back to accounting records.
Watch out: The most expensive VAT mistakes are not errors in the return itself — they are failure to file on time and failure to pay on time. Calendar reminders for every quarterly due date are non-optional compliance hygiene.
See also: Output VAT, Input VAT, Federal Tax Authority (FTA)
