Payment User Guide

Payment User Guide

1. Brief overview of this user guide

This guide will help you to complete the Tax due payment using any of the following options:

  • Paying via e-Dirham or credit card
  • Paying via Bank Transfer – Local Transfer
  • Paying via Bank Transfer – International Transfer


2. Paying Tax Due

2.1. Paying via e-Dirham or credit card

In order to pay your Tax liability and administrative penalties, please follow the instructions below.

1) Navigate to the tab that displays “My Payments”

2) Enter the amount you want to pay under the relevant box (Excise Tax or VAT), and click “Make Payment”. Please note that partial payments can be made i.e. you do not have to pay the entire amount due. However, make sure you pay the entire amount before due date to avoid penalty. Older liabilities will be paid off first and then the more recent ones will be fulfilled afterwards.

3) You will then be directed to ‘Payment Information’ screen to proceed with the payment. Click on ‘Pay Now’ button to be directed to e-Dirham gateway.

You may pay using the e-Dirham payment gateway which supports payments through an e-Dirham card or a credit card (Visa and MasterCard only). A payment using an e-Dirham card will typically incur a charge of AED 3, while a payment using a credit card will typically incur a charge between 2% - 3% of the total payment amount.


4) Once you are redirected to the e-Dirham gateway, you will be able to make the payment through an e-Dirham card or credit card (Visa / Master Card). After confirming the transaction, once the payment is processed successfully, you will be redirected to the FTA website.

NOTE: You can view your Transaction History and Payments under the relevant Transaction History box (VAT/ Excise Tax) placed within ‘My Payments’ tab. These include your transactions and payments for your periodic Returns as well as any penalties that could be applicable in relation to your Returns, if applicable (e.g. late filings or payments for your Returns or other).


2.2.Paying via Bank Transfer (GIBAN) – Local Transfer

  • A GIBAN is a unique IBAN number that is given to every taxable person.
  • A taxable person can make a fund transfer from certain UAE financial institution using the GIBAN provided by the FTA.
  • This payment method can be used for settling any outstanding VAT and Excise Tax amounts payable including tax and penalties.
  • This option should not be used for other payments such as Miscellaneous Payments.


To pay the amount due using GIBAN, follow the below steps:

  1. Login to e-Services and obtain your GIBAN from the dashboard. You will have different GIBANs for VAT and Excise Tax.
  2. If using online banking to make the transfer of funds, log in to your bank account and add FTA as a beneficiary using the GIBAN number and FTA details. Note that you can also use the GIBAN with other banking channels too (for example visiting your local branch).
  3. Go to the fund transfer/ domestic transfer section of your online banking portal (this name may differ based on your bank account page).
  4. Enter the amount you wish to pay and proceed with the payment.
  5. GIBAN will be validated and the transaction will be processed accordingly.
  6. Once you complete the payment, login to e-Services and go to ‘My Payments’ tab to check that the transaction has been reflected under the ‘Transaction History’ box. Please note that this can take up to 24 hours to be reflected on your account.

IMPORTANT NOTES:
It is your responsibility to make sure you are transferring the payment to the correct GIBAN.

In case you made the transfer to the wrong GIBAN, it is not the FTA’s responsibility to receive/ follow up on the payment and therefore, you are required to contact your bank and fix the matter.

In case a payment is not received on time, a penalty of late payment will apply.


2.3. Paying via Bank Transfer (GIBAN) – International Transfer

If your bank is based outside the UAE and you wish to make an international transfer to pay the amount due using GIBAN, please follow the below steps:

NOTE: To do so your bank should be a member of SWIFT.


1. Login to e-Services and obtain your GIBAN from the dashboard. You will have different GIBANs for VAT and Excise Tax.

2. Visit your bank to make the transfer through the teller.

3. Provide your bank the following details

  • The GIBAN as the "Beneficiary IBAN";
  • The ‘Federal Tax Authority’ as the "Beneficiary Name";
  • The 'Federal Tax Authority’ as the "Account with Institution"
  • The ‘CBAUAEAAXXX’ as the Swift code
  • The amount due you wish to transfer in AED

4. Please highlight to your bank that the amount needs to be transferred to the beneficiary in UAE (Hence, the bank should identify the UAE bank that they deal with, either directly or through an intermediary bank in your geography)

5. GIBAN will be validated and the transaction will be processed accordingly. This will take at least 3-4 days. Hence, it is advised that the payment is made at least one week before the due date to avoid any penalty

6. Login to e-Services and go to ‘My Payments’ tab to check that the transaction has been reflected under the ‘Transaction History’ box.

IMPORTANT NOTES:
It is your responsibility to make sure you are transferring the payment to the correct GIBAN.

In case you made the transfer to the wrong GIBAN, it is not the FTA’s responsibility to receive/ follow up on the payment and therefore, you are required to contact your bank and fix the matter.

In case a payment is not received on time, a penalty of late payment will apply.


3. Allocation of Payments

You may choose your payment allocation option on the e-service portal. There are three options that define the priority of the liabilities to be cleared when you make a payment. These are:

  1. Tax Liability Cleared First: Payments will be allocated towards the settlement of outstanding Tax liabilities first (starting with the oldest), and thereafter to settling Administrative Penalties Liabilities (starting with the oldest). This is the default option.
  2. Administrative Penalties Cleared First: Payments will be allocated towards the settlement of outstanding Administrative Penalties (starting with the oldest), and thereafter to settling Tax liabilities (starting with the oldest).
  3. Oldest Liability Cleared First: Liabilities will be settled in chronological order, starting with the oldest liability (irrespective of whether in relation to tax or penalties).

NOTES: A payment made by any method (eDirham or GIBAN) is allocated as per the user’s choice.

If there are no liabilities outstanding, the payment will be in excess credit and be available for refund. The payment will automatically be allocated to a new liability when it arises.


The example below demonstrates the allocations of payments under each of the three options.

For example, you have a total liability amounting to AED 12,000 made up of August Tax liability of AED 4,000 and the related Administrative Penalties of AED 2,000, and September Tax liability of AED 4,000 and the related Administrative Penalties of AED 2,000. If a payment is made for AED 11,000, the allocation of the payment will be as follows:

Tax Liability Cleared First The AED 8,000 for Tax liability of August and September will be cleared first, and the remaining AED 3,000 will be allocated towards the Administrative Penalty for August (AED 2,000) and partial Administrative Penalty for September (AED 1,000). Your outstanding liability will be AED 1,000 relating to the Administrative Penalty for September.
Administrative Penalties Cleared First The AED 4,000 for Administrative Penalty of August and September will be cleared first, and the remaining AED 7,000 will be allocated towards Tax liability, of which 4,000 will be against the Tax liability for August and AED 3,000 will used for September. Your outstanding liability will be AED 1,000 relating to the Tax liability for September.
Oldest Liability Cleared First Both categories of liabilities for August (Tax of AED 4,000 and Administrative Penalty of AED 2,000) will be cleared first, amounting to AED 6,000. The remaining AED 5,000 will be allocated towards Tax liability for September (AED 4,000) and partial payment of the Administrative Penalty for September (AED 1,000). Your outstanding liability will be AED 1,000 relating to the Administrative Penalty for September.


To update the allocation of your payments, please follow the steps below:

  1. Login to e-Services and navigate to “My Payments” tab.
  2. Select the Payment Adjustment Type option you wish to from the three options available.
  3. Click on the ‘Update’ button next to the options for the changes to reflect in your account.
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