How to make VAT payment using GIBAN
To facilitate the VAT payment by persons registered under VAT, the FTA has introduced a new method of paying tax: GIBAN. This is in addition to the existing e-Dirham facility and credit card payment option. Let us understand what GIBAN is and how to pay VAT using GIBAN.
What is GIBAN?
GIBAN (Generated International Bank Account Number) is a unique IBAN (International Bank Account Number) that will be given to every taxable person under VAT. A taxable person can make a fund transfer from certain UAE financial institutions using the GIBAN. Transfer through GIBAN will ensure timely processing of fund transfers between bank accounts.
Which tax liabilities can be paid using GIBAN?
GIBAN can be used for settling outstanding VAT & Excise tax amounts as well as penalties.
From when can GIBAN be used as a mode of payment?
GIBAN can be used as a mode of payment from 28th February, '18.
How can a taxable person obtain a GIBAN?
Every taxable person will be allotted a GIBAN based on the TRN (Tax Registration Number). The GIBAN will be displayed in the person’s dashboard in the FTA e-Services portal.
How can VAT payment be done using GIBAN?
To pay a tax amount due using GIBAN, the following steps need to be followed:
Hence, the FTA has eased payment of tax for taxpayers by providing the new option of payment using GIBAN. Taxpayers can avoid the 2-3% fees while paying through credit card and opt for payment using GIBAN, which ensures timely remittance of the amount to FTA.