How to File the Excise Tax Returns in the UAE During the Period of Extension?

excise tax return period extended in the uae

Extension of Excise Tax Return Due Date By FTA In The UAE

Extension of Excise Tax Return Due date in the UAE for the current month is the latest update from the Federal Tax Authority (FTA). In the wake of the Global pandemic, COVID 19, the UAE government has been proactively addressing the issues of its business communities to pull through the financial and operational difficulties caused by this outbreak.

As part of these ongoing efforts, the Federal Tax Authority has rolled out extensive measures to support the tax registrants in the country.

On April 14th, 2020, the Federal Tax Authority has announced an extension of Excise Tax Return filing due dates for the months of March and April 2020. The due date to file the tax returns of these tax periods has been extended to May 17th, 2020.

Normally, a taxable person in the UAE who is registered for Excise Tax shall file the tax returns monthly on or before the 15th of every month. Under normal circumstances, the Excise tax returns for the month of March is due on or before 15th of April 2020.  As per the notification issued by the Federal Tax Authority (FTA), the tax return filing due date has been extended to May 17th, 2020 considering the exceptional situation of COVID 19.

This decision will help thousands of tax registrants in the country to plan their finances meticulously and organize the cash flow without impacting the day to day operations.

Is there any penalty for the late return filing of Excise Tax in the UAE?

Generally, if a tax registrant fails to file his tax returns on or before the due date, he shall be liable for a non-filing penalty of AED 1,000 for the first time and AED 2,000 in case of repetition.

Understanding the urgent and exceptional nature of the situation, the FTA have extended the return filing date for Excise Tax without any late return penalty for the March 2020 tax return. So tax registered person must submit the Excise tax return on or before 17th May 2020 which is the extended date. Late return penalty will be levied only if the tax returns are not submitted within the extended date.

How to file the Excise Tax returns in the UAE during the period of Extension?

The Federal Tax Authority has advised the Excise Tax registrants to file two separate returns, one for the month of March 2020 and another for the month of April 2020 respectively on or before 17th of May 2020.

Registrants need to submit the data of each month in its respective return and are not to consolidate the figures in one tax return.

Please note that the extension applies only to the time frame of filing the returns and not to any procedural aspects of filing the return, which remains unchanged. 

When to make payment during the extension of Excise Return in the UAE? 

The authority, in its notification, has advised the registrants to ensure that the payment in relation to these extended return filing to be made on or before 17th of May 2020.

This decision by FTA on extension of return filing and related payment enables the registrants to plan and manage their cash flows which is undoubtedly a blessing for the businesses in the region.

Is there any Extension of VAT Return Due date in the UAE?

What is the due date for VAT Returns Under UAE VAT Law?

For taxable persons filing returns on monthly basis: As per the Federal Decree Law 8, VAT returns are due to be filed on or before 28th of succeeding month after each allotted tax period. For registrants having a monthly tax period, VAT returns need to be filed on or before 28th of the succeeding month.  

For taxable persons filing returns on monthly basis: The VAT tax returns for the tax period from January 2020 to March 2020 is due to be filed on or before 28th of April 2020.

Though there are widespread rumors that there has been extension given for VAT returns there has been no such communication from the authorities as of date.

We are committed in notifying any updates from the authorities to all our users and will update if any communication is officially issued.

As of now there is no such indication from the Federal Tax Authority and we cannot expect and wait for the same. Hence as a responsible taxable person who complies the regulations without committing any error, you have to prepare the VAT return for the running period well in advance and make the payment before the due date.

What are the penalties if the VAT Returns are not filed within the due date? 

If a tax registrant fails to file his tax returns on or before the due date, he shall be liable for a non-filing penalty of AED 1,000 for the first time and AED 2,000 in case of repetition.

What are the penalties if the Tax Payable amount is not paid within the due date?

Late payment penalty will be 2% on unpaid VAT amount for first seven days after the return filing due date, which will increase by 4% if not paid within next seven days. Further, if VAT amount not paid in a month, 1% each day will be imposed up to the maximum of 300% of the VAT amount due.

The Emirates Chartered Accountants Group are the registered Tax Agent with the Federal Tax Authority under Emirates International Chartered Accountants Group. We are happy to support and guide your company for any of the above-mentioned requirements. Our Tax Professionals are highly qualified and well versed with the UAE Tax Law with the practical implementation of VAT in UAE and Bahrain. We understand that every business is different from the other. Hence, each of our services is tailored as per your business needs.

Looking for TAX Services in the UAE?

We are happy to assist.

  • Tax Agent’s Service 
  • Pre – Tax Audit 
  • VAT Return Filing 
  • VAT Implementation
  • VAT Registration
  • Excise Tax Registration 
  • VAT Deregistration 
For Tax Services in Dubai:
Mr. Pradeep Sai
sai@emiratesca.com
+971 – 556530001
For Tax Services in Abu Dhabi:
Mr. Navaneeth
nav@emiratesca.com
+971 – 558892750
For Tax Services in Northern Emirate (Sharjah, Ajman, RAK, Fujairah)
Mr. Praveen
praveen@emiratesca.com
+971 – 508873115

 

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