Insights April , 2020

Extension of Excise Tax Return and Payment in the Month of April 2020

On 14 April 2020, the Federal Tax Authority (“FTA”) issued an extension of the tax period, which began on 1 March 2020 for businesses registered for Excise Tax for one month on an exceptional basis.  The period relates to the months of March and April 2020, and ends on April 30, 2020, allowing registered Excise Taxpayers sufficient time to fulfil their tax obligations before the deadline.  Excise Tax registrants are required to file two separate Tax Returns, one for March and one for April 2020, and settle the total amount due for the two months no later than Sunday, May 17, 2020.

In a press statement issued by the FTA, it was noted that the deadline takes into consideration the date set by UAE Government Authorities to impose the 24-hour restrictions on movement for individuals and vehicles, implemented in certain areas of the UAE due to the Coronavirus COVID-19.

These measures will greatly assist UAE Excise Tax Registrants – constituting approximately 1,100 Registrant who are required to submit several declarations detailing their production, import, or release of Excise Goods from Designated Zones.

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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.