Extension of VAT Tax Return and Payment in the Month of April 2020
On 21 April 2020, the Federal Tax Authority (“FTA”) announced an extension and to provide an alternative date of 28 May 2020 as the deadline for submitting VAT returns and settling payable tax for the tax periods ended 31 March 2020 (monthly and quarterly VAT returns), allowing registered businesses sufficient time to fulfil their tax obligations before the deadline.
The issuance of this extension was made in light of the current environment and challenges from the worldwide pandemic of the Coronavirus and the UAE’s efforts to limit the spread of COVID-19. This will greatly assist taxpayers to manage any impact on cash flow.
VAT Registrants are now subject to the following tax reporting obligations:
- If subject to monthly filings, to 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 subject to quarterly filings, to 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 this exceptional directive pertains only to VAT Returns for the tax periods that ended on 31 March 2020, and does not extend to any other tax periods where the standard deadlines for filing tax returns and settling of payable taxes remain in place.
Disclaimer on Use
The information presented is intended for general information only and is not meant to be a substitute for professional advice or to be used for decision-making.
Professional advice relies on an assessment and understanding of the specific situation for each person and, therefore, the application of changing laws and regulations in the UAE, will vary widely from case to case.
The information contained herein is based on facts available from sources we believe to be credible at the time of publication and is subject to change.