Estimate net VAT payable for a UAE quarterly VAT return. Enter quarterly revenue including 5% VAT and recoverable input VAT to find your net VAT due to the FTA.
Estimate net VAT payable for a UAE quarterly return period.
Net VAT payable to FTA
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Output VAT collected
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Input VAT recoverable
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Net revenue (excl. VAT)
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Effective VAT burden
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UAE quarterly VAT returns explained
VAT-registered businesses and freelancers in the UAE must file a VAT return for each tax period, typically quarterly. The return reports output VAT (VAT charged on sales) and input VAT (VAT paid on business purchases). The net amount, output minus input, is either paid to the Federal Tax Authority or, where input exceeds output, carried forward or refunded. The filing deadline is 28 days after the end of the tax period.
How output VAT is calculated
Output VAT is 5 percent of the net value of all taxable supplies made during the quarter. If you invoice a client AED 105,000 including VAT, the net value is AED 100,000 and the output VAT is AED 5,000. This is the amount you collected on behalf of the FTA and must remit. You do not keep this money; it is held in trust from the moment you issue the invoice. Maintaining a VAT-exclusive record of all sales makes the quarterly return straightforward.
Claiming input VAT as a freelancer
As a VAT-registered freelancer you can claim back the VAT you paid on business-related purchases: software, hardware, office costs, professional subscriptions, and services from other VAT-registered providers. You must hold a valid UAE tax invoice from each supplier, and the purchase must have a direct link to your taxable business activity. Personal expenses and entertainment costs are not eligible. Keeping organized records throughout the quarter makes the input VAT calculation quick and audit-proof.
Frequently asked questions
Who must register for VAT in the UAE?
Any person or business with taxable supplies or imports exceeding AED 375,000 in the previous 12 months, or expected to exceed that threshold in the next 30 days, must register for VAT with the Federal Tax Authority. Voluntary registration is possible if taxable supplies exceed AED 187,500. Freelancers and sole proprietors earning above the mandatory threshold must register, charge 5% VAT on invoices, and file quarterly VAT returns.
How often must UAE VAT returns be filed?
Most businesses and freelancers in the UAE file VAT returns quarterly. The Federal Tax Authority assigns a tax period of one month or three months depending on turnover. Quarterly filers must submit their return and pay any net VAT within 28 days of the end of the tax period. Late filing and late payment both attract penalties under Cabinet Decision No. 40 of 2017.
What input VAT can a UAE freelancer recover?
A VAT-registered freelancer can recover input VAT on business purchases that have a direct link to taxable supplies. This includes laptops, software subscriptions, office rent, professional services, and similar business expenses. Input VAT cannot be recovered on entertainment expenses, personal use items, or purchases that relate to exempt supplies. Keep valid tax invoices from VAT-registered suppliers for every input claim.
What happens if input VAT exceeds output VAT?
If your input VAT in a quarter exceeds your output VAT, you have excess input tax and can apply for a refund from the FTA, carry the excess forward to offset against future output VAT, or request the FTA to transfer it to another tax account. Refunds are generally processed within 20 business days for businesses in good standing. Freelancers who make large purchases in a quarter where revenue is low often see a refund position.