How Do I Pay VAT or Corporate Tax Due When Filing?

If you run a business in the UAE, you might need to pay Value Added Tax (VAT) or Corporate Tax, depending on your activity and income. Filing a tax return means telling the government how much money your business made, how much tax you’ve already paid, and how much more you still owe. But how do you actually pay that amount? Let’s break it down in simple terms.

Paying VAT in the UAE

VAT is a 5% tax added to most goods and services in the UAE. If your business is registered for VAT, you need to file a VAT return every three months, and once submitted, the Federal Tax Authority (FTA) will determine whether you owe tax or are due a refund. If there’s an amount to pay, it must be settled by the 28th of the month following your VAT period—for example, if your period ends in March, the payment is due by April 28.

Payments can be made using a card, through a bank transfer using a unique GIBAN number provided by the FTA, or at approved exchange houses across the UAE. It’s important to ensure your payment reaches the FTA on time to avoid late penalties. If you’re unsure whether you’re VAT-compliant, our team can review your bookkeeping and tax standing for accuracy.

Paying Corporate Tax in the UAE

Starting from June 2023, most UAE businesses are required to pay corporate tax, which is a 9% tax on profits exceeding AED 375,000. Corporate tax returns must be filed with the Federal Tax Authority, and payments are due within nine months after the end of your financial year. For example, if your financial year ends in December, the payment should be completed by the end of the following September.

You can settle the amount using a card, through a bank transfer using your unique GIBAN number issued by the FTA, or by visiting approved exchange houses. Staying ahead of deadlines is key, especially for small and new businesses looking to maintain good financial standing and avoid fines.

Why Timely Tax Payments Matter

Avoiding missed deadlines and tax penalties starts with having the right support. At Choose UAE, we make VAT and corporate tax compliance simple with straightforward plans tailored to your business needs. With a proven 5-star track record, we help you stay ahead of deadlines, ensure your payments are received on time by the FTA, and guide you through proper documentation so you avoid unnecessary fines.