Federal Tax Authority (FTA) exempted businesses and individuals from administrative penalty for non registration of VAT, and now Federal Tax Authority (FTA) has extended the deadline by April 30, 2018.
All the businesses in UAE who did not register till December 2017 has given a relief as FTA issued new VAT Registration deadline which is APRIL 30, 2018. Businesses who did not register till now are exempt from the administrative penalties for the couple of months and they can register before the end of April to avoid any VAT fines and penalties.
Federal Tax Authority (FTA) stated that response to the tax system by the business sectors and all segments of society are very satisfactory and there is steady and smooth increase in the the tax compliance ratios, which shows the success of the model adopted by the FTA. Tax Experts noted that SMEs, Free zone companies and branches of the foreign companies will get advantage from the FTA’s decision to exempt them from the penalty of AED 20,000 for not registering under the VAT.
Federal Tax Authority (FTA) has extended the deadline for those companies who have not registered for the VAT yet. The new date for the VAT Registration will be April 30 to avoid penalties and fines as many of the companies and businesses could not meet the previous deadline due to manpower and other technical issues.
According to the FTA, Almost 260,000 companies have been registered and those companies who are still not registered and does not have Tax Registration Number (TRN) cannot make Tax Invoice and cannot collect VAT. The extension in the deadline of the VAT Registration will be relaxation for the businesses and the major beneficiaries of this decision will be SME companies.
FTA also communicated that those businesses which are registered for VAT to submit their Tax returns and pay their due taxes on the given schedule.
The decision was to urge businesses to do the VAT Registration as soon as possible.