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VAT Payment

VAT Payment in UAE

Overview of VAT Payment 

In the UAE, VAT payment refers to the obligation of VAT-registered businesses to remit collected taxes to the government. A standard rate of 5% applies to taxable supplies of goods and services within the UAE VAT framework. When purchasing goods and services, businesses must also pay 5% VAT to their suppliers.

Registered businesses must remit collected VAT to the government, with two distinct types:

  • Output VAT: VAT collected by businesses on their sales of goods and services.
  • Input VAT: VAT paid by businesses on their purchases of goods and services.

VAT payment in the UAE is determined by offsetting Output VAT against Input VAT.

Methods of VAT Payment in UAE

Various methods are available for VAT payment in the UAE, including:

  • Magnati
  • Credit Cards
  • Bank Transfer (GIBAN)

These methods are accessible through the Federal Tax Authority (FTA) portal under “My Payments”.

Steps to Make VAT Payment
  1. Log in to the FTA Portal: Access the Federal Tax Authority’s online portal FTA e-Services.
  2. Navigate to "My Payments": Go to the "My Payment" section on your Dashboard.
  3. Specify the Payment Amount: Enter the amount you wish to pay in the designated field.
  4. Make Payment: Click on “Make Payment” to proceed. Ensure the full amount is settled before the due date to avoid penalties. Payments will prioritize older liabilities before addressing more recent ones.
Modes of Payment
  • Paying via e-Dirham or Credit Card
  • Paying via Bank Transfer – Local Transfer
  • Paying via Bank Transfer – International Transfer
Contact BINJOY for VAT Payment Assistance

Our tailored solutions cater to diverse industry needs, ensuring compliance and optimized tax strategies. Contact us now for comprehensive guidance on VAT payment in the UAE