The Federal Tax Authority (FTA) in the UAE issued a much-needed relief to the business in the UAE. The FTA issued an exceptional directive providing a month-long extension for submitting the VAT Returns and making VAT Payments for all Tax Registrants whose VAT Returns and VAT Payments were due on April 28, 2020. Earlier, another relief was granted to excise Tax Registrants by pushing it to May 15, 2020, from April 15, 2020. The extension purely reflects the adoption of best practices over the world to facilitate ease to the Tax registrants. The revised due dates are officially reflecting on the FTA Tax portal.

There was an anticipation of extension due to ongoing sterilization drive on account of COVID19 in the Emirates of Dubai, making it unviable for Tax Registrants to work towards return preparation and submission. The businesses welcome this extension in the UAE as they work with reduced workforce capacities due to COVID19 restrictions.

This exceptional directive of the FTA pertains only to VAT Returns for the tax periods that ended on March 31, 2020. It 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.

This relief is certainly a boon for the cash strapped Tax Registrants. However, we recommend to file the VAT return and make the VAT payment if the Tax Registrant is ready with the VAT return and the cash flow permits. In case of Tax Registrants it is recommended to file the Tax Return and immediately apply for refund.