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Untd A Emirates

16 October 2020

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The UAE Federal Tax Authority Announces New Tax Payment System

The UAE Federal Tax Authority has announced that it has completed preparations to join the new eDirham system for the payment of taxes. Use of the new system is mandatory from November 2020.

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The Federal Tax Authority introduces new version of the eDirham across its official channels to pay due taxes

The Federal Tax Authority introduces new version of the eDirham across its official channels to pay due taxes

Transitional period extending till October 2020 end, enabling tax system registrants seamless transition to new eDirham advanced, safe services

Calling on tax registrants to accelerate the switch to using the new version of eDirham before stopping the use of the old version, beginning November 2020

Abu Dhabi, 12 October 2020: The Federal TAX Authority, FTA, has completed its preparations to join the Third Generation of the UAE's eDirham system, which has been launched by the Ministry of Finance, MoF, to facilitate the collection of state fees and revenues and to provide further options for paying government fees using the latest technology in accordance with the best safety and security standards.

The Authority began implementing the transition plan for the current month of October to enable all tax registrants to make a swift and easy switch to process their tax payments to the Authority through the new generation of the eDirham, approved within the official payment channels provided by the Authority. This comes to replace the old version of the eDirham, which will be suspended and will not be available to use for the Authority's transactions as from the beginning of November 2020.

The FTA stresses the necessity for all those registered with the Authority who are eDirham users to prepare to switch to the new version of the eDirham, which will provide them with a more diverse set of options that are both easier to use and adhere to the highest standards of safety and excellence.

Excise Tax Registrants

In the interest of facilitating a smooth transition to the new version, the FTA has enabled the payment feature to be available through the old version of the eDirham cards, in addition to the new cards, until October 31st, 2020, for Excise Tax Registrants. They will now be able to do their payments to the Authority from the beginning of this current week through the new version of the eDirham. This system has now been included in the official payment channels of the Authority, with the possibility of payment through the old version during the transitional period, lasting till the end of October 2020.

The Authority calls on Excise Tax Registrants to accelerate the shift to the use of the new version of the e-Dirham system and to ensure that any outstanding balance from the old version are consumed and settled before the cards come to a complete stop at the end of the transition period set forth by the Authority.

Value Added Tax (VAT) Registrants

The FTA indicated that VAT registrants will be able to process their tax payments to the Authority from the beginning of November 2020 through the new version of the eDirham, and from the beginning of that same date, payments will no longer be available to them through the old version of the eDirham system.

The Authority called on VAT registrants to prepare to switch to the new version of the eDirham system, and to consume and settle outstanding balances from the old version of the e-Dirham before the cards come to a complete stop at the end of the transition period set by the Authority at the end of October 2020.

The Authority affirmed its keenness to provide tax registrants enough time by allocating a transitional period that extends till the end of October 2020, allowing for a smooth transition to the advanced new version of the e-Dirham system.

The FTA indicated its stance in remaining up-to-date with the latest electronic systems, and to provide a variety of payment mechanisms which are characterized by their speed and flexibility, with the aim of expanding the range of payment options to facilitate procedures for taxpayers.

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