All registered taxpayers in the UAE need to file VAT returns monthly or quarterly. If the output VAT is more than what can be recovered, the difference is a VAT liability to be paid to the FTA. EmaraTax has been launched by the Federal Tax Authority (FTA) for VAT payments in the UAE.
If you are eligible for VAT registration and have not registered for EmaraTax yet, follow these steps to register and enter your business details. After registering, you can pay VAT on the EmaraTax portal.
This article explains you to pay VAT to the Federal Tax Authority (FTA) using different methods on the EmaraTax portal. The tax advisors at Now Consultant can help you with VAT payments for ease to avoid penalties for late payments.
Methods of VAT Payments on EmaraTax:
Here are the steps on how to pay VAT payments on the EmaraTax portal:
Step 1:
The first step is to Log in to the EmaraTax portal using your FTA credentials.
Step 2:
In the second step, click on ‘My Payments’ option.
Step 3:
a)Click ‘Select & Pay’ if you want to decide whether to pay your tax or a fine.
b) If you want to pay all tax liabilities and fines at once, click on ‘Pay All’.
Step 4:
If you selected ‘Pay All’, click on ‘Continue to Payments’.
Step 5:
Choose how to make your VAT payment, either through GIBAN or FAB Magnati Pay. you can choose anyone according to your convenience.
Through GIBAN:
After clicking on ‘GIBAN’, you will see payment instructions along with your GIBAN and Payment reference number.
1) When you are submitting your payment, it is mandatory to mention the GIBAN reference number and the amount stated above. Make sure you only include the 6-digit reference number when paying it through online banking. Avoid adding any extra text in this section.
2) Submit the payments to the Federal Tax Authority (FTA) before the end of the due date to avoid late payment penalties.
Through FAB Magnati Pay:
The other alternative method of payment is ‘FAB Magnati Pay’. Click on the option of ‘FAB Magnati Pay’, and it will be directed to the banking portal, where you can easily pay the tax amount or liability using your credit or debit card.
How To Confirm Your VAT Payment:
1) Your account will show the updated amount and any chosen debts will be paid off.
2) You will get a notification confirming your payment through your preferred contact method.
3) You can check the payment in your “Transaction History”.
4) You can download the receipt of this payment from the “My Correspondence” section.
Penalties For Late payment of VAT:
After submitting the VAT payment, it is mandatory for the taxpayer to ensure that the payment is made within the due date. If the payment is not made by the due date, a penalty for late payment will be imposed as given below:
- A penalty of 2% will be applied immediately to any outstanding tax if the payment of the due tax is delayed.
- A 4% penalty will be applied to any outstanding tax amount that remains unpaid on the seventh day after the payment deadline has passed.
- A daily penalty of 1% will be imposed on any remaining unpaid amount for one month after the payment deadline, with a maximum limit of 300%.
How We Can Help You?
If you are facing issues in registering your business and business details at the Emaratx portal, Now Consultant assist you in filing your VAT to FTA through Emaratax porta. The experts at Now Consultant will help you to choose the payment method that is suitable for you.
We will make sure that your VAT payments are paid within the due timeline so that penalties and fines can be avoided. Hire Now Consultant, we will take care of your tax in compliance with the updated regulations of UAE authorities.
FAQs:
What Should I Do If I Make An Error In My VAT Payment?
If you realize you made a mistake or error in your VAT payment, you need to fix it by submitting a Voluntary Disclosure form to the FTA. This form corrects errors in your tax return or VAT payment.
2. Where Can I Get Assistance With VAT Payments and Compliance?
Now Consultant is the leading tax advisory firm to provide comprehensive VAT related services in the UAE. We help businesses meet all the taxation requirements in compliance with the UAE regulations and publish all necessary reports to the FTA within the due time frame.
