Businesses urged to benefit from penalty relief until April 30

abu dhabi — The Federal Tax Authority (FTA) has urged businesses to benefit from the FTA decision to waive administrative penalties for businesses until April 30, clarifying that the decision only covers late registration penalties and that taxable businesses are still required to settle all the taxes due from January 1, 2018.

FTA director general, Khalid Ali Al Bustani, called on businesses to benefit from the extension granted by the authority, which takes into account the lack of readiness among businesses when the Value Added Tax (VAT) first went into effect. The decision reflects the authority’s commitment to guiding taxable persons and ensuring their full compliance to avoid administrative penalties. He further urged businesses to register immediately to avoid missing the deadline on April 30.

According to Federal DecreeLaw No. (8) of 2017 on Value Added Tax, as well as its Executive Regulations, taxable persons

Businesses have become highly aware of the importance of the tax system and the need to comply with tax procedures

Khalid Ali Al Bustani, Director General, FTA

are required to retroactively settle the taxes due since the law went into effect on January 1, 2018, the FTA director general stressed.

The FTA has been keen to provide guides, infographics and publications through its website – where it also published the tax laws. Furthermore, the authority has produced educational short videos and e-learning modules to explain tax procedures to taxable businesses and ensure compliance.

“Businesses have become highly aware of the importance of the tax system and the need to comply with tax procedures,” Al Bustani said.