Dubai March 17, 2023:

The Federal Tax Authority (FTA) has introduced new e-commerce reporting and record-keeping obligations for resident taxpayers. These obligations, published in an amendment to the UAE VAT Executive Regulation, change the sourcing rules for e-commerce supplies made by residents in the Emirates. Amendments to the voluntary disclosure procedure have also been enacted.

Timeline

The new reporting and record-keeping obligations are applicable from July 1, 2023, or the first tax period following the calendar year in which the threshold was exceeded.

• Taxpayers that meet the threshold should be subject to the e-commerce reporting obligation for a set time period.
• For taxpayers that have exceeded the threshold during year 2022: 18 months from the first tax period on or after July 1, 2023.
• For taxpayers that have exceeded the threshold after calendar year 2022: two years from the first tax period of the calendar year following the year the taxpayer has exceeded the threshold.
• After this time period, whether it be 18 months or two years, the taxpayer should re-assess whether it has met the threshold in the calendar year that has just ended.

The voluntary disclosure rules will be applicable from March 1, 2023.

View the document to know more about the amendments’ impact and obligations for taxpayers.