Alternative date of 28 May 2020 for the deadline of submitting VAT returns and the settlement of payable tax for the tax periods ended 31 March 2020


A. Background

In order to help taxpayers affected by the COVID-19 crisis and the disruption it caused to businesses in the region, the Federal Tax Authority (FTA) has issued an alternative deadline to file VAT returns for the period ended 31 March 2020.  Instead of the original deadline of 28 April 2020, the new deadlines are further extended to 28 May 2020. The directive dated 21 April 2020 sets new deadlines for VAT returns and fulfilment of the requirements for both the monthly and quarterly VAT declarations.

The support demonstrated by the Authorities to the businesses to delay the filing and payment of VAT dues gives the taxpayers enough breathing room to preserve and extend their cash-flow in these difficult times.  This is also in line with the Authorities’’ commitment continue its valuable support to businesses across the UAE.

“This comes in light of the Federal Tax Authority’s commitment to supporting VAT registrants and the unprecedented intensive precautionary measures undertaken by the UAE to curb the spread of the novel Coronavirus (Covid-19) imposing 24-hour restrictions on the movement of individuals and vehicles implemented in certain areas of the UAE, which coincided with deadlines for filing VAT Returns,” said FTA on its press statement. 

B. Further Clarifications and scenarios

To better understand the alternative deadline, the following must be satisfied:

Tax periods

Deadline to file and pay VAT

Monthly filing

Companies whose tax period covers 1 to 31 March 2020…

Must file their tax return and settle tax due not later than 28 May 2020

Quarterly filing 

Companies whose tax period covers 1 January 2020 to 31 March 2020 (1st quarter of 2020) …
Must file their tax return and settle tax due not later than 28 May 2020

Note : 
The tax payers are also reminded by the Authority to ensure that the FTA has received the tax payable for the monthly / quarterly return for the period ending 31 March 2020, by Thursday, 28 May, 2020.

The Authority also reminded the tax payers that this is an exceptional directive for the alternative deadline.  It also means that the directive covers only those VAT Returns for the tax periods ended on 31 March 2020, and does not affect any other tax periods where the deadline for filing tax returns and settlement of tax due does not fall on 28 April 2020.

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