VAT shutterstock_247492816-for-web
Picture used for illustrative purposes Image Credit: Shutterstock

Dubai: In light the unprecedented precautionary measures undertaken by the UAE to curb the spread of COVID-19, the Federal Tax Authority (FTA) has issued an alternative deadline to file tax returns for VAT and pay taxes on May 28 for the tax period ended on March 31.

The current 24-hour restrictions on the movement of individuals and vehicles implemented in certain areas of the UAE coincided with deadlines for filing VAT returns, Thus the FTA issued a directive on an "exceptional basis" providing an alternative date of May 28 for submitting VAT returns and the payment of due tax for the tax period ended March 31, 2020.

As per the new 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 31, 2020, no later than May 28, the FTA said in a statement.

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 May 28.

Check on accuracy

The FTA urged VAT registrants to ensure the data they include in their VAT returns is accurate, and also that the FTA receives the payable tax for the tax period ending March 31, 2020, by May 28.

This directive for the deadline pertains only to VAT returns for the tax period that ended on March 31, 2020, and does not affect any other tax period where the deadline for filing tax returns and settling of payable taxes does not fall in April 2020.

The FTA said it provides all its services remotely, relying on a fully automated electronic system that facilitates registration, filing tax returns, and payment of due taxes from anywhere and over the course of 24 hours a day.

“The objective is to encourage registrants to comply with tax procedures, using the FTA’s online platform while avoiding direct physical interaction with relevant departments or the use of paper documents,” it said.