FTA Tax Alert

Suspension of tex settlement facility upon import

Federal Tax Authority (FTA) has decided to suspend the reverse charge facility on imports for the taxpayers who owe amounts to FTA and which are overdue.

“Please note that there are amounts that are overdue by you in favor of the Federal Tax Authority and have not been paid till date, this is a direct violation of the tax laws enforced in the UAE. Therefore. the authority decided to stop the facility to declare the value-added tax under the reverse charge mechanism when importing goods”

This means taxpayers will be required to pay the tax on the import of goods in cash before customs clearance of the goods.

Therefore, to avoid suspension and to reactivate the reverse charge mechanism facility, you must settle all the dues owed to the authority before the end of August 2020 and send an email to the following address: enforcement@tax.gov.ae with proof of payment. Note, the authority retains the rights to all legal procedures to collect the amounts due, while charging you all fees, expenses, and litigation risks.