What is Form 201?
Form 201 is the VAT return prescribed under Federal Decree-Law 8 of 2017 and its Executive Regulations, filed through EmaraTax for each tax period — typically quarterly for most SMEs, or monthly for businesses with taxable supplies above AED 150 million. It summarises output VAT charged on sales, input VAT recoverable on purchases, and any adjustments, arriving at the net VAT payable to, or refundable from, the FTA.
Every registered business must file Form 201 even if there were no transactions in the period (a 'nil return'). Our VAT filing service prepares and submits Form 201 accurately from AED 499 per return, with a reply within 30 minutes on WhatsApp.
Form 201 box-by-box walkthrough
Form 201 is divided into two main sections: VAT on Sales and All Other Outputs (Boxes 1–8) and VAT on Expenses and All Other Inputs (Boxes 9–10), followed by Net VAT Due (Boxes 11–14).
| Box | Description |
|---|---|
| Box 1 | Standard rated supplies (5%) by Emirate — output VAT collected on Dubai, Abu Dhabi, Sharjah and other Emirate sales |
| Box 2 | Tax refunds provided to tourists under the Tourist Refund Scheme |
| Box 3 | Supplies subject to the reverse charge mechanism — imports of goods/services where VAT is self-accounted |
| Box 4 | Zero-rated supplies (exports, certain healthcare, education, international transport) |
| Box 5 | Exempt supplies (bare land, local passenger transport, certain financial services, residential rent) |
| Box 6 | Goods imported into the UAE reported via customs declarations, with VAT due |
| Box 7 | Adjustments to goods imported into the UAE (corrections to Box 6 figures) |
| Box 8 | Total value of due tax and adjustments (sum of Boxes 1–7) |
| Box 9 | Standard rated expenses — input VAT recoverable on purchases and expenses |
| Box 10 | Supplies subject to reverse charge — recoverable input VAT side of Box 3 |
| Box 11 | Total value of recoverable tax (sum of Boxes 9–10) |
| Box 12 | Total value of due tax for the period |
| Box 13 | Total value of recoverable tax for the period |
| Box 14 | Net VAT due (payable) or refundable — Box 12 minus Box 13 |
Output VAT vs input VAT
Output VAT is the 5% VAT a registered business charges on its standard-rated sales of goods and services, collected from customers and owed to the FTA. Input VAT is the 5% VAT a business pays on its own purchases, imports and business expenses, which can generally be recovered by offsetting it against output VAT, provided the expense relates to taxable business activity and proper tax invoices are held.
Net VAT payable = Total Output VAT − Total Recoverable Input VAT. If input VAT exceeds output VAT in a period, the business shows a refundable position in Box 14 instead of a liability.
Use our VAT calculator for a quick single-transaction estimate, or the VAT split calculator to break a VAT-inclusive amount into net and tax components.
Standard-rated, zero-rated and exempt supplies
- Standard-rated (5%): most goods and services sold within the UAE, reported in Box 1, with full input VAT recovery on related costs.
- Zero-rated (0%): exports of goods and services outside the UAE, international transport, certain healthcare and education supplies, and first supply of new residential buildings — reported in Box 4, with input VAT still recoverable.
- Exempt: bare land, local passenger transport, certain financial services and residential rent (beyond first supply) — reported in Box 5, with no input VAT recovery on directly related costs, requiring apportionment if the business also makes taxable supplies.
Businesses making a mix of taxable and exempt supplies must apply the input tax apportionment method approved by the FTA. Our tax advisory team can confirm the correct method for your sector.
Reverse-charge imports: Box 3, Box 6 and Box 7
When a UAE VAT-registered business imports goods or receives services from a supplier outside the UAE, it must self-account for VAT under the reverse-charge mechanism rather than the foreign supplier charging UAE VAT. The recipient reports the VAT as both a liability (Box 3 for services, Box 6 for goods declared through customs) and, where the input is used for taxable business purposes, as recoverable input VAT (Box 10), making the transaction broadly VAT-neutral in most cases.
Box 6 auto-populates in EmaraTax from customs declaration data linked to the importer's Tax Registration Number, but businesses must verify these figures against their own import records. Box 7 is used to make manual adjustments where the customs data is incomplete, incorrect, or where goods were imported for a Designated Zone.
Failing to reconcile Box 6 customs data against actual import invoices is one of the most frequent FTA audit findings, often leading to under- or over-declared import VAT and subsequent penalty exposure.
Adjustments and bad debt relief
Businesses can adjust output VAT previously declared where a bad debt is written off, provided: (1) more than 6 months have passed since the supply date, (2) the debt has been written off in the accounts, and (3) the recipient has been notified of the write-off. The adjustment reduces output VAT in the current period rather than requiring an amended return for the original period.
Other common adjustments include credit notes issued for returned goods, corrections to previous periods where the error is below the AED 10,000 threshold (adjustable in the current return), and capital asset scheme adjustments for input VAT recovery on major assets over their useful life.
Errors exceeding AED 10,000 net tax impact require a formal Voluntary Disclosure (Form VAT211) filed separately rather than being adjusted in the current Form 201 — see our penalty calculator to estimate any exposure.
Net payable vs refundable and the refund process
If Box 14 shows a payable amount, this must be paid to the FTA by the due date. If it shows a refundable (negative) amount, the business can either carry the credit forward to offset future VAT liabilities, or submit a VAT refund application (Form VAT311) via EmaraTax. The FTA generally processes valid refund claims within 20 business days of submission, though this can extend if further information or a review is required.
| Scenario | Box 14 result | Action |
|---|---|---|
| Output VAT AED 45,000, Input VAT AED 30,000 | AED 15,000 payable | Pay via GIBAN by due date |
| Output VAT AED 20,000, Input VAT AED 32,000 | AED 12,000 refundable | Carry forward or submit Form VAT311 |
| Output VAT AED 0 (no sales), Input VAT AED 5,000 | AED 5,000 refundable | File nil-sales return, claim refund |
Due dates and payment channels
VAT returns and payment are due 28 days after the end of the relevant tax period. For a standard quarterly filer with a tax period ending 31 March, the return and payment are due by 28 April. Payment is made via the Generated International Bank Account Number (GIBAN) unique to each taxpayer, accessible on EmaraTax, using local bank transfer, UAEFTS, or card payment (subject to a service fee).
- Quarterly filers: return and payment due 28 days after quarter-end.
- Monthly filers (large taxpayers, taxable supplies > AED 150m): return and payment due 28 days after month-end.
- Always allow 1–2 business days for bank transfers to reflect against the GIBAN before the deadline.
Need help setting up or correcting your filing frequency? Our VAT registration and VAT filing teams manage this end-to-end.
Penalties for late filing and late payment
| Violation | Penalty |
|---|---|
| Late filing of VAT return | AED 1,000 for the first occurrence, AED 2,000 for repeated failure within 24 months |
| Late payment of VAT due | 2% of unpaid tax due immediately, 4% monthly penalty after 7 days from the due date, up to a maximum of 300% of the unpaid tax |
| Failure to keep required records | AED 10,000 for first violation, AED 20,000 for repetition |
| Submitting an incorrect return | AED 1,000 for first violation, AED 2,000 for repetition, plus tax difference and additional penalties in some cases |
Run the numbers on your specific situation with our FTA Penalty Calculator before deciding whether to file a voluntary disclosure.
Reconciliation checklist before filing
- 1Match total sales in your accounting system to Box 1–5 declared supplies.
- 2Reconcile Box 6 customs import data against actual supplier invoices and shipping documents.
- 3Confirm all input VAT claimed in Box 9–10 relates to valid tax invoices with your Tax Registration Number.
- 4Review any credit notes, bad debt write-offs, and prior-period corrections under AED 10,000.
- 5Verify the GIBAN payment reference and amount before submitting payment.
- 6Retain the filed return, supporting schedules and payment confirmation for at least 5 years (15 years for real estate-related records).
If your books are behind, our backlog accounting and bookkeeping & accounting services get records audit-ready fast.
Worked quarterly example
Consider a Dubai-based trading company for the quarter ending 30 June 2026, with the following figures:
| Item | Amount (AED) |
|---|---|
| Standard-rated local sales (Box 1) | 600,000 revenue → 30,000 output VAT |
| Zero-rated exports (Box 4) | 150,000 (no VAT) |
| Reverse-charge imported services (Box 3) | 40,000 → 2,000 VAT self-accounted |
| Goods imported via customs (Box 6) | 80,000 → 4,000 VAT |
| Standard-rated expenses (Box 9) | 220,000 → 11,000 input VAT |
| Reverse-charge recoverable (Box 10) | 2,000 + 4,000 = 6,000 input VAT |
| Total output VAT (Box 12) | 36,000 |
| Total recoverable VAT (Box 13) | 17,000 |
| Net VAT payable (Box 14) | 19,000, due 28 July 2026 |