On 21st April FTA announced an alternative date of 28th May 2020 for the deadline of submitting VAT returns & settling Payable tax for the tax period that ended on 31st March 2020.
FTA- Federal Tax Authority has always been committed to supporting the VAT registrants while they are managing the development and challenges amidst the measure taken in the UAE to keep a check on the spread of the pandemic COVID-19. These measures have restricted movement for almost all the individuals and vehicles throughout the day in some specific areas.
FTA understands that these measures are necessary, but they also agree that they have collided with the deadlines of filing the VAT returns. Hence, the FTA has decided to help reduce the tax burden for the VAT registrants in these circumstances and allowing them to fulfill their obligations, filing their tax returns and settling their payable taxes with the timeframe set by the law.
Keeping all this mind Federal Tax Authority has issued a directive on a very exceptional case, that provides an alternative date of 28th May 2020 for the deadline of submitting VAT returns & settling Payable tax for the tax period that ended on 31st March 2020, thus giving the registered businesses sufficient time not only filling tax returns but also for payment of any tax due i.e. settlement of tax liabilities as well.
The Tax obligations that the VAT Registrants must fulfill are:
- If they are subject to monthly filings, file their tax returns, and settle their payable tax for the period from 1 to 31 March 2020, no later than Thursday, May 28, 2020.
- If they are subject to quarterly filings, file their tax returns, and settle their payable tax for the period from 1 January 2020 to 31 March 2020, no later than Thursday, May 28, 2020.
- Ensure that the FTA has received the tax payable for the monthly/quarterly return for the period ending 31 March 2020, by Thursday, May 28, 2020.
Please note that this alternative date of extension is applicable only to those VAT Registrants whose tax period ended on 31st March. This, however, will not be applicable or affect any other tax periods where the normal deadline for VAT filing does not fall in April 2020.
Since there is an extension you can leverage this time and still find the best VAT Automation partner who can help you file your returns and help you stay FTA compliant even during the COVID-19 pandemic.
R7VAT is one of the best VAT automation solution providers. It is FTA approved and has the experts that help you stay abreast of the FTA guidelines. To know more about our solution and how we can help you can get in touch with us on email@example.com.