The Federal Tax Authority has issued a directive extending the filing date for VAT Returns for the Tax Period ending 31 March 2020, from 28 April 2020 till 28 May 2020.
The FTA, the government entity responsible for the administration, collection and enforcement of federal taxes, was established in 2016 by the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, via Federal Decree-Law 13 of 2016.
The payment of the VAT due for this Tax Period will also only be payable on 28 May 2020. This extension should provide an extended period for Taxable Persons to collect payments for Tax Invoices due to them to allow them to meet their VAT obligations to the FTA.
A VAT Return calculates how much VAT you owe by looking at: Your total sales and purchases across a three-month accounting period. The amount of VAT you owe for sales. The amount of VAT you can reclaim for purchases made by your business.
The FTA further announced that the extension will also apply to Taxable Persons that lodge monthly VAT Returns and that the VAT Return and payment of the VAT due for the Tax Period from 1 March 2020 till 31 March 2020 will also only be due on 28 May 2020.
The abovementioned directive from the FTA will only pertain to VAT Returns for the Tax Periods that ended on 31 March 2020, and does not affect any other Tax Periods where the deadline for filing Tax Returns and settling of payable taxes does not fall in April 2020.