Thursday 24 May 2018
 
»
 
»
Story

Khalid Ali Al Bustani

90,000 UAE firms to pay VAT by month-end

ABU DHABI, April 23, 2018

The UAE’s Federal Tax Authority (FTA) has revealed that approximately 90,000 businesses registered for value-added tax (VAT), VAT, are required to submit their tax returns and pay their taxes no later than April 29.

Over 85,000 of these companies had their first quarterly tax period end in March, while the remaining businesses saw their monthly periods end on the same date, reported Emirates news agency Wam.

In a statement issued yesterday (April 22), the Authority renewed its call to all businesses registered for VAT to expedite the submission of their tax returns and pay their due taxes on time in order to avoid administrative penalties.

FTA director-general, Khalid Ali Al Bustani, called on registrants to check their tax periods and the deadline for submitting tax returns and paying due taxes through the eServices portal on the FTA website.

 "Businesses whose tax periods ended on 31st March should submit their tax returns, and then pay their due taxes before the deadline specified by the Authority," he explained. "The majority of registered businesses included in quarterly tax periods are small and medium enterprises.”

"The Authority sought to streamline the procedures of filing tax returns and paying taxes to encourage taxable persons to comply and carry out their transactions by themselves electronically to meet their tax obligations in mere minutes and with four simple steps. Taxable persons may, at any time, enlist assistance from the FTA-accredited tax agents listed on the website," he added.

The Federal Tax Authority urged businesses whose tax periods ended on March 31, to pay their taxes immediately in order to ensure the payments reach the FTA before the deadline. Payments require time to be processed through the banks, which could mean that it will take one to four working days for it to reach the Authority. This, in turn, may result in the funds reaching the Authority after the deadline has passed, in which case, the taxable person incurs administrative penalties.

The Authority explained that according to Federal Decree-Law No. 08 of 2017 on Value Added Tax and its Executive Regulations, tax returns must be submitted to the FTA no later than the 28th of the month following the end of the tax period. Meanwhile, Federal Law No. 07 of 2017 on Tax Procedures provides that the deadline is to be postponed to the following day if the 28th falls on a weekend or public holiday.

The FTA director-general applauded the high compliance rate among registered businesses whose monthly tax periods ended in January and February, confirming that compliance with regards to submitting tax returns and paying taxes on time was within the highest rates internationally, especially considering that VAT has only been in force in the UAE since the beginning of 2018.

"The clear, simple and straightforward procedures put in place by the Authority to facilitate the submission of tax returns and the payment of taxes were, undoubtedly, behind the high compliance rate among businesses – along with the increased tax awareness," he said.

"Tax return submission and tax payment can be made any time and from anywhere using the eServices portal on the FTA website, which was designed according to international best practices."

"The website provides flexible and diverse payment mechanisms, as well as information and guides that increase tax awareness and provide a sophisticated environment that helps businesses meet their deadlines," Al Bustani concluded.




Tags: UAE | FTA | VAT |

More Industry, Logistics & Shipping Stories

calendarCalendar of Events

Ads