The Federal Tax Authority (FTA) has revealed that approximately 90,000 businesses in the UAE are required to submit their tax returns and pay their taxes no later than Sunday, April 29.
(Video below for more information)
More than 85,000 of these companies had their first quarterly tax period ending in March, while the remaining businesses saw their monthly periods stop on the same date. In a statement issued today, the FTA renewed its call to all companies required to pay VAT to expedite the submission of their tax returns and pay their due taxes on time to avoid administrative penalties.
The FTA urged businesses whose tax periods ended on March 31, 2018, to pay their taxes immediately to ensure the payments reach before deadline.
Be wary of 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.
The processing time, 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. (8) for 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.
In some cases the deadline is flexible
Meanwhile, Federal Law No. (7) for 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.
FTA Director General, Khalid Ali Al Bustani, called on businesses to check their tax periods and the deadline for submitting tax returns and paying due taxes through the eServices portal on the FTA website (eservices.tax.gov.ae).
“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,” H.E. Al Bustani concluded.
Check out the video on how to submit your VAT returns