Timely and Cost-Effective Tax Payment via GIBAN

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Federal Tax Authority (FTA) recently introduced a new method of paying taxes to facilitate the VAT and Excise payments by persons registered under VAT or Excise tax. This new payment method involves paying through GIBAN.

A GIBAN (Generated International Bank Account Number) is a unique IBAN (International Bank Account Number) provided to every taxpayer to make fund transfers from certain financial institutions in the UAE. A GIBAN is the IBAN representation of the TRN of the Taxable entity.  You can use GIBAN to settle outstanding VAT, Excise tax and penalties.Transfer through GIBAN will ensure timely processing of fund transfers between bank accounts. Entities paying tax will be given a GIBAN based on the TRN (Tax Registration Number). The GIBAN will be displayed in the entity’s dashboard in the FTA e-Services portal.

There are 2 ways of paying taxes i.e.-

  1. Domestic transfer within UAE
  2. International transfer (If the bank is a member of SWIFT)

Domestic transfer within UAE

Method 1- Direct Payment at the Bank and Exchange Companies

Provide the bank or exchange the relevant GIBAN number along with the amount to be paid to FTA with regard to VAT Outstanding, interest, or penalty. You may also be asked to provide your ID at the bank or exchange to make the transaction, so it is better to keep an ID with you while visiting.

Method 2- Electronic transfer from the Bank Account

  1. Log on to your internet banking(e-banking) and then add the ‘Federal Tax Authority’ as a beneficiary using GIBAN
  2. Go to Payments/Transfer Fund tab
  3. Enter the amount you wish to pay and complete the transaction
  4. GIBAN will be verified and the transaction will begin processing.
  5. Once the payment is made, you can visit your FTA portal, and can view the payment transaction under the ‘My Payments’ tab.

International transfer (If the bank is a member of SWIFT)

Following are the guidelines to make VAT payment from abroad:

  1. Login to your to FTA e-services portal and get the GIBAN.
  2. Provide the following details to your Bank in your country:
    • FEDERAL TAX AUTHORITY E868 AE as an account with an institution.
    • GIBAN of the Taxpayer as a beneficiary
    • Route the payment to Federal Tax Authority using Domestic Systems UAEFTS as a sender to receiver
    • The amount will be paid to the FTA
    • Swift code is CBAUAEAAXXX
  1. Determine that transfer is destined for a beneficiary in the UAE
  2. GIBAN will be verified and the transaction will begin processing
  3. Once the payment is made, you can visit your FTA portal, and can view the payment transaction under the ‘My Payments’ tab.

We recommend that one should make payment more than a week ahead of due date to avoid delay and getting penalty.

By paying through GIBAN, taxpayers can avoid the additional fees while paying through credit card and opt for GIBAN instead.

If you need any assistance regarding payment through GIBAN or any tax related help, you can reach us on Horizon Biz Consultancy.

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Read More:

All About VAT Payments in UAE

UAE Tax Penalties Reduced and Discounts Granted

FTA clarification on Transfer of a business as a going concern

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