VAT Payment

VAT Payment in UAE

The payment of tax collected by VAT registered businesses to the government is known as VAT payment in UAE. A VAT of 5% is charged on taxable supply of goods and services by the businesses registered in UAE VAT. The business is also required to pay 5% VAT to their suppliers when they purchase goods and services from them.

VAT that is collected by registered businesses should be paid to the government. There are two types of VAT. Output VAT and Input VAT which can help in understanding the payment of VAT to the government. Value Added Tax calculated and charged on your own sales of goods and services if you are registered for VAT is called Output VAT. Whereas Input VAT is Value Added Tax that is being added to the price you pay for goods and services. It is a tax paid by the business to its suppliers. The VAT payment in UAE is determined after counterbalancing the Output VAT and Input VAT. There are multiple ways to make VAT payment in UAE. They are Magnati, Credit Cards, and Bank Transfer (GIBAN). The payments can be made through the Federal Tax Authority (FTA) portal under “My Payments”.

We understand the needs of each business depending on their industry and provide tailor-made solutions. For more information regarding VAT payment in UAE, inquire us now!