Procedures to be followed while making FTA payment

All taxable persons in UAE are mandatorily required to file the VAT return on a timely basis as stipulated by FTA and make the payments due if any to FTA within the prescribed time period. FTA has issued guidance regarding the process of making tax payments and the taxable persons shall be aware of the steps involved in this to plan and make their payments on time.

What are the types of payments usually made to FTA?

The payments to be made to FTA are usually based on the periodic VAT returns of the company. Total output tax due on supplies made or imported is compared with the recoverable amount of input tax and excess amount due if any shall be the net tax liability to be paid to FTA. In other cases, where if any penalties or fines imposed by FTA due to non-compliance with requirements specified by the authority, those penalties or fines also shall be part of the payments due to FTA.

What are the methods available for FTA payments?

Payments to FTA can be made through any of the below mentioned options:

• Payment via e-dirham card or credit card
• Payment via bank transfer either from locally based bank or from an international bank account

What are the steps involved in making FTA payments through e-dirham card or credit card?

Once you are logged into the FTA portal, to make payments, go to “My payments” in the navigation tab and the amount to be paid can be entered there. This will direct to the “Payment Information” page where you can click on “Pay Now” option to proceed to the payment gateway to make the payment using e-dirham card or credit card. Once payment is processed, you will be directed back to the FTA page. It is to be noted that the payment using e-dirham card will incur a charge of AED 3 and using a credit card will incur a charge of 2% to 3% of total payment amount.

What are the steps involved in making FTA payments through a local bank transfer?

There is a unique IBAN number which is referred as GIBAN, which is given to every taxable person. Once logged into the FTA portal, you can obtain your GIBAN from the dashboard. To make payment through a transfer from your local bank account, add FTA as beneficiary in your bank’s net banking service using the GIBAN number and FTA details. Then payments can be made by fund transfer option through net banking as similar to any other local transfer. Once payment is made, the same can be checked by logging into the service portal of FTA. It may take 24 hours for the payment to be reflected in the FTA portal.

What are the steps involved in making FTA payments through an international bank transfer?

To make FTA payments as a transfer from your bank located outside UAE, the bank shall be a member of SWIFT. You can visit the bank and request for transfer by providing the GIBAN as beneficiary IBAN and other FTA details. The bank will be able to arrange for the transfer to FTA and it may take 3 to 4 days for processing the payment. Once processed, the payment will be reflected in the FTA portal.

What are the other points to be noted relating to FTA tax payments?

FTA has made available the option to make full or partial payment of VAT in UAE by the taxable person. In case of making partial payments, the taxable person shall ensure that the entire amount is paid on or before the due date prescribed by the authority to avoid any penalties. Any payment made will be settled against the oldest tax liabilities first before the latest dues. If you want to check the outstanding amount due to FTA, including tax liabilities or penalties if any, that can be checked by clicking the “VAT Transaction History” box which is under “My Payments”

How CDA assist in tax payments and reporting activities of your company?

Our dedicated tax team can support you in managing your tax function by providing customized services based on the nature of your business transactions and specific features of your company. CDA has expert tax professionals who can help you in carrying out the periodic tax reviews, support you in correspondences with FTA, assist you in preparing the tax returns and guide you along the process of tax payments. 

Hope you got a clear idea on the procedures to be followed while making FTA payment. Also, we are happy to clarify your queries on tax regulation, accounting framework, management reporting, regulatory reporting, internal audits, compliance and other financial activities.