FTA to Launch EmaraTax on December 5, 2022

Dubai October 24, 2022:

Here’s an important notice from FTA that is all set to launch EmaraTax on December 5 2022.

EmaraTax significantly enhances taxpayer access to the FTA’s services, payment of taxes and obtaining refunds. The new platform also enhances the ability of the FTA to administer taxes in the UAE and enables better, faster decision-making and earlier engagement with taxpayers that need support.

The new online platform is part of the UAE’s Digital Government Strategy 2025 to leverage emerging technologies and build a digital infrastructure that serves the people and business community.

NBR releases Updated VAT Registration Guide

Dubai October 22, 2022:

The National Bureau for Revenue (NBR) releases a VAT Registration Guide (Updated in October 2022). The document provides guidance on registering for VAT in the Kingdom of Bahrain (Bahrain).

For your information, VAT was introduced in Bahrain since January 1, 2019 with a standard rate of VAT of 5 %. With effect from 1 January 2022, the standard rate of VAT was revised to 10 %. See the VAT Rate Change Transitional Provisions Guide on NBR’s website for an explanation of the transitional rules relevant to the change in rate.

The guide is intended to provide general information only, and contains the current views of the National Bureau for Revenue (NBR) on its subject matter. The document serves as a guideline only and is not a substitute for obtaining competent legal advice from a qualified professional. The main principles of the VAT system in the Kingdom of Bahrain are set out in the VAT General Guide issued by the NBR which is available on it’s website.

UAE announces VAT Exemption for Board Members from January 1, 2023

Dubai November 18, 2022:

Supply of services for people serving as board members will not be subject to value-added tax from next year, the Ministry of Finance said on November 17, 2022.

The ministry added that before the new legislative amendment is implemented, tasks performed by board members – natural and legal persons alike – are treated as taxable services subject to VAT, on the condition that the member provides them on a regular, continuous, and independent basis, and if the total value of these taxable supplies/services and import transactions, exceeds the mandatory tax registration threshold.

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Saudi Arabia to Begin e-invoicing Phase II from January 2023

Riyadh November 16, 2022:

Having only introduced VAT on 1 January 2018, Saudi Arabia is leading the way in digitizing its tax invoices. The Zakat, Tax and Customs Authority (ZATCA) has given January 1, 2023 as the go-live date of the second phase.

Phase I consisted of ensuring that there is a technical e-invoicing solution compatible with the relevant requirements. This puts an end to handwritten invoices or invoices written through text editors. A fine of SR 5,000 will be applied for not issuing and saving the invoices electronically.

Phase II of e-invoicing will be implemented in a phased manner from January 2023, to establish integration between e-systems of taxpayers and the authority’s regulations. In addition to other requirements, Phase II introduces integration with ZATCA platform for continuous transaction controls requiring taxpayers to clear invoices ahead of transmission to buyers. The fine for omitting the QR Code and not reporting any malfunction in the issuing of the e-invoice to the authority starts with a warning. The fine for violating the deletion or modification of e-invoice starts from SR 10,000.

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FTA emails Awareness Information on Excise Tax Registration

Dubai November 15, 2022:

As part of Muwafaq initiatives, the Federal Tax Authority (FTA) will send weekly Awareness Materials to taxpayers such as informative guides, and updates. The Authority is committed to ensuring full and voluntary compliance with tax regulations among all business sectors, and keep all registrants abreast with the obligations under the UAE tax laws.

With regards to this, the FTA has sent an emailer on the requirements, processes and conditions for ‘Excise Tax Registration‘ in the region. The application takes hardly about 45 minutes to complete, and can be submitted 24/7 on their official website.

Click here to view the file.

UAE: Get Ready, EmaraTax set to Go Live on December 5

Dubai November 14, 2022:

EmaraTax, FTA’s new enhanced tax platform, is going live on December 5, 2022. The migration to EmaraTax will commence from November 30, 2022 and will be available for use on 5 December. The migration is planned in such a way so as to minimize disruption to taxpayers and coincides with the National Day holidays well in advance of the usual tax return submission and payment dates.

Emaratax is a new tax platform designed to provide a better experience for taxpayers to manage their tax obligations. The smart app will also enhance taxpayer’s ability to administer taxes, enable better, faster decision-making and foster earlier engagement with those requiring support.

Log onto eservices.tax.gov.ae to access the FTA’s online services. This web address will remain unchanged even after the transition to EmaraTax. A dedicated microsite has been launched containing important information about EmaraTax and is intended to help taxpayers prepare for the new platform. From November 7, 2022 to November 18, 2022 the FTA will host virtual awareness sessions for taxpayers regarding the new EmaraTax portal to help them navigate the new system easily.

Click here to get more details about the new platform that includes guidance videos, FAQs and links to online orientation sessions. Stay tuned for more updates and content addition over time.

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Bahrain: NBR releases FAQS on Digital Tax Stamps

Manama November 12, 2022:

Following UAE Federal Tax Authority’s footsteps, Bahrain’s National Bureau for Revenue announced the introduction of Digital Tax Stamps on Excise Goods starting from July 17, 2022 (extended from May 15, 2022) for imported Cigarettes, and retailed Cigarettes starting October 16, 2022 (extended from August 14, 2022)

The digital tax stamp system is a regulatory system that aims to track excise goods from the manufacturing stage to the goods being put into the local market for sale/consumption. Under this system, a dedicated digital stamp containing security features and codes is placed in order to prevent the circulation of non-original excise goods in the region.

Click here to read the FAQS.

Federal Tax Authority granted ISO 22301 for Business Continuity Management

Dubai November 10, 2022:

The Federal Tax Authority (FTA) has enhanced its holistic quality scheme designed to bring its operating systems and services in line with the highest international quality standards, thus earning the ISO 22301 certificate.

The FTA secured the ISO certificate for Business Continuity Management for its Business Continuity and Crisis Recovery System, after updating all of its practices and procedures in the sector. The independent assessment and audit team reviewed compliance with requirements to meet the ISO 22301 standard, as well as internal protocols and documented procedures that have been implemented.

The Authority underlined the continuous growth in the number of FTA employees who obtained international accreditation certificates related to the international standard for business continuity, which is now 74 employees compared to just 49 last year. This marks a 51% increase in 2022, highlighting the FTA’s commitment to developing its human capital in accordance with the highest international standards. The Authority strives to continuously upgrade its services to meet customers’ needs, save time, cut costs, and boost efficiency in resource management, in addition to motivating employees to integrate into the work environment.

FTA Director General His Excellency Khalid Ali Al Bustani said, “The new certification we have earned reaffirms confidence in the Federal Tax Authority’s systems, as well as in its efficiency and ability to face challenges and maintain business continuity. The ISO 22301 for Business Continuity Management reflects the Authority’s commitment and excellence in implementing technological systems and hiring the right talent, capable of ensuring continuity in our service provision, while maintaining the highest levels of quality and safety.”

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FTA issues VAT guide on refund of VAT for Construction and Operation of Mosques

Dubai November 11, 2022:

Federal Tax Authority (FTA) has recently issued a VAT guide on ‘Refund of VAT Incurred on the Construction and Operation of Mosques’. The VAT guide explains the requirements and process for recovering input VAT incurred on construction and operation of mosques and this document should be read by persons constructing and/or operating/maintaining a mosque in the UAE.

Click here to view the VAT guide.

FTA releases Key Amendments to the UAE VAT Law

Dubai November 9, 2022:

We wish to inform you that the United Arab Emirates (UAE) Federal Tax Authority (FTA) has published notable amendments to the Federal VAT Decree-Law No. 8 of 2017 (UAE VAT Law). This is the first update to the UAE VAT Law ever since its introduction in 2017. The amendments will go into effect from January 1, 2023.

In this piece, we have outlined an overview of the key changes to the UAE VAT Law. We recommend taxpayers in the UAE to closely study all the amendments to the UAE VAT law. This is in order to determine if your current tax processes require changes to comply with the new regulations.

Read the full article.