Businessmen who have a minimum annual income of Dh 375000 have the mandate to register for VAT in about 30 days. All the required documents and the declaration form must be filed properly. The documents include the import and export records, accounting records as well as sales and purchase records. VAT registered businesses must report the amount of VAT collected and the amount paid to the government. If the VAT paid is more than the amount charged, it is possible to reclaim them. Let’s find out how to pay VAT in UAE.
Paying VAT (Value Added Tax) in the UAE is a simple process if you follow the guidelines prescribed by the Federal Tax Authority. First, make sure your company is registered for VAT via the FTA portal and that you have received your Tax Registration Number (TRN). Once enrolled, you must file your VAT return, which is normally due quarterly, through the FTA’s e-Services platform. After filling out and submitting the VAT return form, you will be presented the total VAT amount due. Payment can be made immediately via e-Dirham, a credit or debit card, or a bank transfer with the GIBAN (Generated International Bank Account Number) provided in your FTA account. It is critical to pay by the due date to avoid late payment penalties. Keeping proper records and adhering to filing dates enables efficient VAT administration and prevents legal complications in the UAE.
All the taxable entities in the UAE must file their VAT monthly or quarterly basis. The FTA bank details for VAT payment is provided by the UAE tax authorities on their website. The VAT payment guidelines provide a step-by-step procedure so that the user can have an idea of how to pay VAT. There are three documents to be submitted to process VAT payment are the TRN (Tax Registration Number) certificate, GIBAN, and the trade license copy. The VAT in UAE must be paid electronically through the website of the Federal Tax Authority(FTA). They can be paid in three methods:-
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Via credit card
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Via debit card
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Though bank transfer
Partial payments of VAT are also allowed but, the full payment must be done before the deadline in order to avoid penalty. Failure in the payment before the due date results in a penalty and they are calculated as follows:-
- 2% is on the tax which is left unpaid after the deadline
- 4% is on the amount unpaid on the seventh day after the time limit
- 1% of the daily penalty imposed on the amount left unpaid
So, to avoid all mishaps and difficulties faced during the VAT payment VAT consultants in Dubai like KGRN would be able to help you finished the VAT payment online beforehand.
For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com
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