Nil VAT return

The situation

Yes. Every registered person files a return for each period, even with nil figures.

The law

• Federal Decree-Law 8 of 2017 and Executive Regulation: Returns are filed for every tax period

What it means for you

A missed nil return still costs AED 1,000. Example: a property company between tenants files nil returns for two quarters. If the business has stopped making taxable supplies for good, consider deregistration instead.

What to do

1. Log in and open the period.
2. Enter zeros and submit.
3. Keep a note of why it is nil.
4. Consider deregistration if activity stopped.

Related

• Fixing a past VAT mistake
• Tax invoice timing and penalty
• Reverse charge on foreign software
• Input VAT denied for a fake supplier
• Blocked input VAT on entertainment and cars
• Partial exemption with residential rent