VAT Filing Date is Extended In UAE

The Federal Tax Authority (FTA) has issued a directive on an exceptional basis providing an alternative date of May 28, 2020, for the deadline of submitting VAT returns and the payment of due tax for the tax period ended March 31, 2020, enabling taxable persons to meet their tax obligations without facing any difficulties.  According to (GSC) Dubai VAT Filing, all registered businesses must file their VAT returns by the end of the assessment period. However, the new decree overrules this clause and extends the time available to businesses. But, the process for filing the returns remains the same, as per (LSI) FTA.

 

This comes in light of its commitment to supporting VAT registrants. The registration for VAT in the UAE follows the procedure laid out by (LSI) VAT Registration. Furthermore, the UAE has undertaken unprecedented intensive precautionary measures to curb the spread of the novel Coronavirus. The UAE went as far as imposing 24-hour restrictions on the movement of individuals and vehicles in certain areas. As a result, deadlines for filing VAT Returns needed extensions. While the new rules overrule the (LSI) VAT Return by-laws, they will provide some much-needed relief to vendors.

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What is VAT?

The Value Added Tax, better known as VAT is an indirect form of tax levied on most goods and services. As per (GSC) at filing UAE, the VAT came into force in the UAE in January 2018. The new tax helps provide the UAE with a new income source, helping the government reduce its dependence on oil. All eligible businesses must file their VAT returns, as per rules stated in (GSC) VAT Filing Dubai. Furthermore, registration of businesses to the VAT regime occurs through (LSI) VAT registration.

 

According to (LSI) FTA, the Federal Tax Authority is in charge of VAT collection in the UAE. In a press statement issued, the Federal Tax Authority confirmed that, as per the directive, VAT registrants who have monthly tax periods must submit their returns, and settle the payable tax for the tax period from March 1 to March 31, 2020, no later than Thursday, May 28, 2020. Meanwhile, VAT registrants having quarterly tax periods must submit their returns and settle the payable tax for the tax period from January 1 to March 31, 2020, by Thursday, May 28, 2020. The Federal Tax Authority urged VAT registrants to ensure the data they include in their VAT returns is accurate. Also, they must ensure that the FTA receives the payable tax for the fiscal year, by Thursday, May 28, 2020. The tax paid must comply with the by-laws stated in (LSI) FTA.

 

Contact Person: CA Gopu Rama Naidu CPA FCA.
Email: support@kgrnaudit.com. Phone: +971 455 70204



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