Our team takes you through the most trusted UAE VAT payment options on the FTA Portal.
The bottom line: This is a useful piece our team has put together on 3 ways your business can make its UAE VAT Payment.
With over 30 years of handling clients in the UAE, we can say with enough experience that you should know all your options.
Sometimes, with really difficult circumstances, you may need to resort to a different payment option to avoid the late penalties. Late payment penalties are not levied on the basis of when the payment was initiated, but on the basis of when it reflects on the online portal.
Each option has its own time gap to reflect on the online portal. You can read more about what happens if you pay late here.
Here are three ways to complete your UAE VAT payment:
1) E-Dirham – Payment made through your FTA portal under ‘My Payments’
Transaction fee of AED 3, and will reflect in the account in less than 150 minutes.
This is definitely the fastest and cheapest way to make the payment, however businesses need to keep topping up this card which can be a bit of a hassle.
2) Credit card – Payment made through your FTA portal under ‘My Payments’
Transaction fee of 2%-3% of total payable amount, and will reflect in the account in less than 150 minutes.
It is more expensive than the Edirham card, however it is much more easier, since a topup does not need to be done. However, some businesses are not able to use this option, due to the credit card limit.
3) Bank Transfer – Transfer can be done from a local or international bank, by adding FTA as a beneficiary using the GIBAN mentioned in the dashboard of the FTA portal. GIBAN is a unique IBAN number that is allocated to each registrant. Here the fees vary based on the bank.
For local transfers it will reflect in the account within 24 hours, and for international transfers it could take 2 to 3 days. In our experience, local transfers reflect in the online portal within a few hours.
It probably takes a little longer than the other two options, but there are some advantages as well, firstly, there isn’t any limit on the transfer, secondly, charges are limited the bank charges, and finally in most companies, bank transfers cannot be made without the knowledge of the CFO or the owner of the company, which brings in some level of internal control.