All registered businesses in the UAE are required to file VAT returns either monthly or quarterly. If the output VAT exceeds the recoverable input VAT, the difference constitutes VAT liability that must be settled with the Federal Tax Authority (FTA). Below are the steps to make a VAT payment:
- Log in to the FTA online portal (https://eservices.tax.gov.ae) using your username and password.
- Navigate to the ‘My Payments’ section on the dashboard.
- Under ‘VAT & Penalty Payment’, the total outstanding amount is displayed as ‘Total Outstanding Liability’.
- Enter the payment amount below the total and click ‘Make Payment’.
- Note that partial payments are permissible, but ensure full settlement before the deadline to avoid penalties. Older dues are prioritized over more recent ones (e.g., January VAT before February VAT).
- Clicking ‘Make Payment’ directs you to enter ‘Payment Information’.
- Proceed by clicking ‘Pay Now’, which redirects you to the e-Dirham gateway.
- Choose to pay via an e-Dirham card or a non e-Dirham card on the gateway.
- After completing the payment successfully and returning to the FTA online site, review transaction history and payments under ‘VAT Transaction History’ in ‘My Payments’.
- This section displays your periodic VAT return transactions, payments made, and any penalties incurred, such as those for late filings or payments.
Penalties for late VAT payments are as follows:
- Immediate penalty of 2% of the unpaid tax if payment is delayed.
- An additional 4% on the 7th day after the payment deadline on the remaining unpaid amount.
- Further 1% daily penalty after 1 calendar month from the deadline, accumulating up to a maximum of 300% on the outstanding tax amount.
For Any VAT Related Services Contact Us:
Phone No: +9 71 4 393 1773
