Rule Book

 

August 27, 2017 – Federal Decree-Law No. (8) of 2017 on Value Added Tax has been issued today. This Decree-Law shall be published in the Official Gazette and shall come into effect as of January 1, 2018.

The VAT Law specifies the following:

  • Title One – Definitions
  • Title Two – Tax scope and rate
  • Title Three – Supply
  • Title Four – Tax registration and deregistration
  • Title Five – Rules pertaining to Supplies
  • Title Six – Zero rates and exemptions
  • Title Seven – Calculation of due tax
  • Title Eight – Tax Period, returns, payment and reclaiming of tax
  • Title Nine – Violations and Penalties
  • Title Ten – General Provisions
  • Title Eleven – Closing provisions

The Law refers to Executive Regulations which will provide clarity on the detailed treatment of the various aspects covered in the VAT Law. This is expected to be issued in the near future.

Companies should start their VAT preparation immediately as the implementation date for the law has been set for 1 January 2018.

You may read about the VAT Law Release in more detail here and access the complete VAT Law on the Ministry of Finance Website.

July 31, 2017
The President signed the Tax Procedures Law that effectively ordains the VAT procedures in UAE. The landmark Federal Law No. 7 of 2017 for Tax Procedures, which sets the foundations for the planned UAE tax system, regulating the administration and collection of taxes and clearly defining the role of the Federal Tax Authority, FTA.

The Ministry of Finance (MoF) has made available on their website the unofficial translation of the Tax Procedures Law for reference.

The Law defines a clear set of common procedures and rules to be applied to all tax laws in the UAE, namely, VAT and excise tax laws, and clearly states the respective rights and obligations of the FTA and the taxpayer. The Law covers tax procedures, audits, objections, refunds, collection, and obligations – which include tax registration, tax-return preparation, submissions, payment and voluntary disclosure rules – in addition to tax evasion and general provisions.

Read about it on the official Emirates News Agency. The full text of the law is awaited. WAM Press Release

Earlier on March 16, 2017, The Federal National Council approved a draft law that served as a framework for issuing tax-related laws.