All VAT-registered UAE firms must submit returns, pay tax by Feb-end

All the businesses registered for value added tax (VAT) in the UAE must submit their tax returns and pay their due taxes by February 28, the Federal Tax Authority (FTA) has said.

The first tax period for registered entities end on January 31, 2018. The 5 per cent tax came into effect on January 1 this year.

Those found in violation of the deadline will face administrative penalties. The penalty for those who fail to pay tax is no less than Dhs500 ($136) and no more than triple the value of the tax on the transaction in question. A first incorrect tax filing will result in a fine of Dhs3,000 ($817). Each following error will then result in a Dhs5,000 ($1,361) fine.

Also read: UAE tax authority extends first VAT filing period for some firms

Khalid Al Bustani, FTA director general, said the authority has provided a “simplified process” to submit VAT returns and pay due taxes and urged businesses to use the online system to complete the procedures.

Taxable persons can submit their returns and process the payments 24/7 online.

Al Bustani also confirmed that various channels and mechanisms have been activated to facilitate paying tax fees through a wide network of banks, exchange offices and finance companies in the country.

Registrants also can pay the taxes through the UAE Funds Transfer System (UAEFTS), which offers direct linkage between the Central Bank of the UAE and the FTA. This will enable immediate transactions of tax payments to entities covered by the system through bank accounts and from 77 bank branches, exchange offices and finance companies around the UAE.

Overall, the FTA has provided seven different payment methods to process any payable tax through the E-Dirham platform in the e-services portal on its website.

Al Bustani also stressed that the data submitted should be thoroughly checked and accurately entered when filing the tax return. It should include: the taxable person’s name; address; Tax Registration Number (TRN); the tax period of the tax return; submission date; the value of standard-rated supplies made in the tax period and the output tax charged; the value of zero-rated supplies made in the tax period; the value of exempt supplies made in the tax period.