There are some of the common errors made by the registered entities while filing the VAT returns (1)

• Not recording Zero Rated and Exempted sales
All the entities may correctly file the output and input VAT along with the VAT payables and receivables but they may miss out to record and file the zero rated and tax-exempt sales. The company must try to identify the zero rated and exempted sale and it must be accurately stated and filed with the authority.
• Lack of proper maintenance of records
The FTA makes it mandatory for all the registered entities to maintain proper records of every transaction of at least past five years for most firms. The records may include, purchase and sales records, payments and receipts, import and export records, bank statement of credit and debit transactions, salary and benefit records of the employees, VAT and company ledgers etc. must be maintained and must be updated as per the requirement.
• Delay and missed VAT return filing
During the VAT registration process in UAE by the firm, the authority clearly specifies the deadlines for filing the VAT returns. The firms must ensure that it files its VAT returns on or before the deadlines. It must not make any delay or miss out the VAT return filing process. Approaching an accounting firm for their assistance in VAT return filing will help the firms to correctly follow the filing process and it will save the firm from hefty fines and penalties which may be charged on making delays in VAT return filing.