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VAT Updates: Extended registration and New VAT payment mechanisms

PUBLICATIONS / Articles / 2018 / VAT Updates: Extended registration and New VAT payment mechanisms

A positive reason for VAT registration. The companies which missed registration deadline in December 2017, Federal Tax Authority (FTA) has decided to exempt administrative penalties until April 30.

 

The FTA stated that such decision has been taken due to lack of readiness of some businesses during the first phase of VAT implementation, and reflects FTA’s commitment to assist businesses and encouraging them to be compliant with the tax procedures and to avoid administrative penalties.

 

Another pro-business innovative amendment is to facilitate payment of VAT and Excise Tax. The Federal Tax Authority has introduced the new GIBAN payment method to send payments through bank transfer.  This payment option is in addition to the e-Dirham facility or credit cards payment option (subject to 2-3% fees).

 

Through GIBAN payment system, VAT registered businesses can now make payments from certain UAE financial institutions by bank transfer using their GIBAN number.

 

The encouraging initiative of FTA to facilitate payments via online bank transfers and payments can be made for all tax payments due after 28th February 2018.

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