The standard tax period for Value Added Tax in the UAE is three calendar months, and a taxable person must submit the tax return and pay the tax due no later than the 28th day after the end of that period, unless the Federal Tax Authority specifies a different period or deadline.
Length of the Tax Period
The Executive Regulation of the Decree-Law provides that the standard tax period applicable to a taxable person is three calendar months ending on the date determined by the Authority. However, the Authority may set a shorter or longer tax period for a person or class of persons where it considers this necessary, such as to reduce the risk of tax evasion, improve compliance monitoring, or reduce administrative burden.
Filing the Tax Return
A taxable person must submit a tax return to the Authority for each tax period, within the deadlines and procedures set by the Executive Regulation, to declare all supplies made or received during that period.
Deadline for Filing the Return and Paying the Tax
The tax return must be submitted to the Authority no later than the (28) twenty-eighth day following the end of the relevant tax period, or on any other date determined by the Authority, and the payable tax must be paid by the same deadline.
- A person whose registration has been cancelled must submit a final tax return for the last period in which they were registered.
- The tax return must include basic details such as the registrant's name, address and Tax Registration Number, the value of taxable supplies, output tax, and recoverable input tax.
Flexibility in Setting the End of the Tax Period
Where a standard tax period has been set for a person, that person may request the Authority to end their tax period in a month of their choosing, and the Authority may approve the request as it deems appropriate. The Executive Regulation also sets exceptional tax periods where a person loses legal capacity, such as through death or entering liquidation.
Where Recoverable Tax Exceeds Payable Tax
Where the recoverable tax for a tax period exceeds the payable tax for that same period, the excess recoverable tax may be refunded to the taxable person in accordance with the provisions of the Decree-Law and the Tax Procedures Law.
Illustrative Example
Illustrative example: if a business's tax period is three months ending at the end of March, it must submit its tax return and pay the tax due no later than the 28th day of the following April.
Legal References
- Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax — Article (62) and Article (64)
- Federal Decree-Law No. (8) of 2017 on Value Added Tax — Article (72)
For questions about your specific situation, you can ask the UAE Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.