UAE VAT and Excise Tax Update: Extended Tax Deadlines due to COVID-19 pandemic
Due to the current COVID-19 pandemic, the Federal Tax Authority (FTA) has announced that it allows postponing of VAT returns for the period ending 31st of March 2020, to the deadline of the 28th of May 2020. Excise Tax returns for the tax period ending 31st March and 30th April 2020, has been postponed for submission by the 17th of May 2020.
According to the recent announcement from the FTA, Tax Payers may follow the alternative deadlines:
- The filing deadline for VAT returns for the tax period ending on 31st March 2020 is extended to 28th May 2020.
- Tax Payers are permitted to pay the VAT due within the extended deadline.
- The filing deadline for Excise tax returns has been extended to 17th May 2020 for two tax periods for the months of March and April 2020. These returns will need to be filed separately.
- The taxpayer may choose to pay the Excise Tax due within this extended deadline.
- Unlike the Excise Tax Returns, the FTA made no comments regarding the VAT returns for the Tax period ending 30th April 2020; hence we recommend the Taxpayers with monthly VAT returns to be cautious and take necessary measures to submit the two VAT returns in the month of May 2020.
- The extended deadline is just an alternative due date; Tax Payers have the right to submit the VAT returns within the actual deadline of the 28th April 2020.
- We recommend submitting the VAT return before the end of the month.
- Taxpayers with VAT returns resulting in a VAT payable position may choose to pay by 28th May 2020 to preserve their cashflows.
- Taxpayers with VAT returns resulting in VAT refundable position are recommended to submit the returns earlier and claim the refunds from the FTA.
How can we help?
Rethink as an entity provides VAT advisory, optimization, registration, implementation, compliance, and training services in Bahrain, UAE, KSA, and the GCC.
Our team is here to support businesses and self-employed people concerned about not being able to prepare and submit VAT returns to the FTA and company with UAE VAT Law due to coronavirus.
Our team of senior qualified tax advisors, finance experts, and tax accountants are happy to provide practical help and advice and will ensure timely and cost-effective VAT services.
Based on our local and international experience we understand that VAT is a complex tax and will certainly suffer numerous changes in the upcoming years. Rethink’s VAT services are aimed to suit both basic and complex returns for SMEs and larger enterprises.
Senior Manager (Indirect Tax)