STANDARD KEYS

A VAT return provides information regarding output tax due and input tax recoverable that needs to be submitted to the Federal Tax Authority (FTA) at regular intervals. Submission of VAT return should be done online, via FTA portal before the 28th day following the end of the tax period.

 

The difference between the output and input tax equals to the tax liability of the business. Output tax is charged on the supply of goods and services made to other people, whereas input tax is charged from the recipient of goods or services. A business can recover input tax from FTA, provided there is evidence regarding the amount of VAT paid, which can be a tax invoice or other documentation.

 

Although FTA requires tax returns to be submitted electronically, accounting records relating to business activities must be kept, including the balance sheet, profit and loss account, payroll records, wages, fixed assets, records, and inventory statements.