VAT’s UP

VAT’s UP

Bahrain : 122,842 cases of VAT violations recorded

Date: 29 Nov, 2021

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External URL: https://www.gdnonline.com/Details/1014918

Manama- November 29, 2021:

More than 120,000 value added tax (VAT) violations were registered in Bahrain over the last three years.

Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa said that the violations included delays in VAT registration and declaration, failure to transfer payments on time and implement display, pricing and billing rules and regulations .

KSA: The new deadline for filing October monthly VAT returns - Nov 30

Date: 28 Nov, 2021

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_467.aspx

Riyadh – November 28, 2021:

The Zakat, Tax and Customs Authority has called on taxpayers from the business sector to submit their tax returns for last October month, no later than November 30, 2021. Late returns are subject to penalties between 5 percent and 25 percent of the unpaid tax amount.

Taxpayers can submit their tax returns quickly via the website (zatca.gov.sa).

Taxpayers wishing to obtain more information regarding value added tax can get in touch with the Authority’s office on :

  • Their unified number which works 24/7 (19993)
  • On Twitter (@Zatca_Care)
  • Via e-mail (info@zatca.gov.sa)
  • Instant conversations via the authority’s website (zatca.gov.sa)

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KSA: ZATCA announces Penalties for E-Invoicing Violation

Date: 24 Nov, 2021

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_465.aspx

Riyadh – November 24, 2021:

The Zakat, Tax and Customs Authority (ZATCA) have released a list of penalties applicable to taxpayers for non-compliance with the e-Invoicing regulations in the Kingdom of Saudi Arabia (KSA) ( that will go into effect on 4 December, 2021).

For ease of reference the penalties are listed in the table below :

ViolationsPenalties (SAR)
Non-issuance of E-Inovices or failure to store E-Invoices 5,000 – 50,000
Failure to include the QR Code in the simplified tax invoices/Failure to inform ZATCA of any malfunction that hinder the issuance of E-Invoices Initially, a warning will be sent to the taxpayer. The maximum penalty reach up to 50,000 SAR.
Erasing or amending the E-Invoices after issuance 10,000 – 50,000

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3 varied ways to check the status of your submitted request to FTA

Date: 16 Nov, 2021

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External URL: https://twitter.com/uaetax/status/1460240322357776390

UAE – November 16, 2021:

Here are 3 different ways in which you can check the status of your submitted request to the Federal Tax Authority (FTA).

  • Visit FTA website. Log into the e-services portal. (Enter username and password to log in). Go to your dashboard and check the status of your request.
  • Call Center- Get in touch with FTA’s representative by calling 600599994
  • Send your queries via email to info@tax.gov.ae

Learn about them by viewing the video.
View the video in arabic.

Oman Tax Authority levies fines on non-compliant taxpayers

Date: 14 Nov, 2021

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External URL: https://timesofoman.com/article/109332-tax-authority-imposes-fine-on-non-compliant-taxpayers

Muscat – November 14, 2021:

Attention Taxpayers!

Oman Tax Authority has been summoning non-compliant taxpayers and imposing the applicable penalties on them. In a statement issued online by the Authority it said ” We would like to remind taxpayers that they must submit the VAT returns for the 2nd and 3rd quarters of 2021 within the stipulated deadlines. Failure to do so will attract an applicable fine for non-compliance of the tax law.”

Taxpayers are urged to kindly submit the required returns on time to avoid any fines and penalties that may reach OMR 5,000.

For more information please call: 24746996 or visit the website.

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FTA's new procedures for requesting reconsideration and objections to its decisions

Date: 10 Nov, 2021

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External URL: https://www.tax.gov.ae/en/press-releases/FTA-begins-implementing-new-procedures-for-applications-requesting-reconsideration

UAE – November 10, 2021:

The Federal Tax Authority (FTA) has announced the implementation of new procedures for tax registrants who apply to the Authority for a review of their decisions from November 1, 2021.

The procedures relate to applications for reconsideration of or objections to the Authority’s decisions. They include the decisions made by the Tax Disputes Resolution Committee, challenges to procedures or controls for paying by instalment, and the waiving of administrative penalties.

The Authority asserted that any person has the right to submit a request to reconsider any decision provided that the request includes reasons and meets the prescribed conditions, within 40 business days from the date he was notified of the decision. The Authority will review the request and issue a decision, citing reasons within 40 business days from the date of applicant receipt. The applicant will be informed about it within five business days from the date of issuance of the decision.

Additionally, the new amendments allow tax registrants to submit an objection to the Authority’s decision regarding applications of reconsideration to the Tax Disputes Resolution Committee. The objection submitted to the committee will not be admissible:

  • If a reconsideration request has not been previously submitted to the Authority.
  • If the tax in connection with the objection has not been settled.
  • If the objection is not submitted within 40 business days from the date of notification of the Authority’s decision.

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Saudi: No plan to cut VAT rate this year

Date: 04 Nov, 2021

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External URL: https://saudigazette.com.sa/article/613035/SAUDI-ARABIA/Saudi-Arabia-has-no-plan-to-cut-VAT-rate-any-time-soon-says-Al-Jadaan

Riyadh – November 4, 2021:

Saudi Finance Minister Mohammed Al-Jadaan revealed the Kingdom has no plans to reduce the rate of value-added tax (VAT) in the near future. The decision on VAT will be reviewed after several years as and when when the public finances improve.

Saudi Arabia raised VAT from 5 percent to 15 percent in May 2020 as part of austerity measures to deal with the economic repercussions of the pandemic-hit economy.

Al-Jadaan said the goal of the increased rate of VAT was to deal with the economic repercussions of the coronavirus pandemic. “When the public finances improve after several years, most likely within five years, it will be reexamined, but there will be no VAT cut anytime soon,” he said.

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Amendment in Tax Rules for supply of Goods in Designated Zones

Date: 03 Nov, 2021

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External URL: https://www.khaleejtimes.com/business/fta-ameds-law-to-avoid-double-vat-taxation-on-supply-of-goods-in-designated-zones

UAE – November 3, 2021:

The Federal Tax Authority (FTA) has announced that amendment on tax treatment for supply of goods in designated zones and connected shipping or delivery services to avoid VAT double taxation has come into effect as of October 30,2021.

In a statement, the FTA has confirmed the importance of Cabinet Decision No. (88) of 2021 to amend Article 51 of Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on value-added tax (VAT), and said latest move aims to avoid VAT double taxation on supplied goods in the designated zones and facilitate procedures to non-resident suppliers operating in the designated zones, as these goods will be treated —under certain conditions — outside the scope of tax, hence, no tax registration is required from the supplier.

View the newly issued VAT Public Clarification explaining the New Amendment in the Tax Treatment for the Supply of Goods in Designated zones and Connected Shipping or Delivery Services.

H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum Heads 1st Meeting as Chairman of the FTA BOD

Date: 27 Oct, 2021

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External URL: https://www.tax.gov.ae/en/press-releases/board-of-directors-holds-1st-meeting-with-hh-sh-maktoum-bin-mohammed-as-chairman

UAE – October 27, 2021:

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and Chairman of the FTA Board of Directors (BOD), chaired the first meeting of the FTA Board.

Furthermore, His Excellency Mohammed bin Hadi Al Hussaini, Minister of State for Financial Affairs, was elected as Vice-Chairman of the FTA Board of Directors during the FTA Board’s third meeting of the year, held on October 20, 2021 at the FTA headquarters in Dubai.

A comprehensive progress report on various ongoing development projects and the FTA’s recent achievements and agenda for the future were deliberated upon. Additionally, the Board approved the Authority’s financial statements for the second quarter that ended on June 30, 2021, in accordance with international accounting standards.

H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum asserted that the Authority will continue its efforts to upgrade its services with a series of developmental plans in line with highest standards. The FTA is committed to offering its full support to business sectors and encouraging Taxable Persons to comply with tax legislation, most notably with the FTA’s advanced and integrated e-Services.

View more highlights of the meeting.

FTA: More than 107.1% Growth in VAT Refund Applications from UAE Nationals on Building New Residences

Date: 26 Oct, 2021

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External URL: https://www.tax.gov.ae/en/press-releases/federal-tax-authority-records-more-than-growth-in-vat-refund

UAE – October 26, 2021:

The Federal Tax Authority (FTA) has processed more than 9,640 requests to recover Value-Added Tax (VAT) incurred by UAE nationals on building their new residences by September 2021 – more than 107.1% growth from the numbers recorded in the first nine months of 2021 compared to the total number of processed requests until the end of 2020. (View the statistics )

The Authority revealed that in the first nine months of 2021, over 4,984 applications from citizens requesting a refund of the VAT they incurred on building their new residences were approved, up from the 3,147 requests completed in 2020, 1,399 applications processed in 2019, and just 110 requests in 2018 – the year the VAT Refund Scheme for UAE Nationals Building New Residences was launched.

FTA Director General His Excellency Khalid Ali Al Bustani attributed the massive growth in the number of citizens benefiting from the Scheme to the efforts the Authority has made with its wide-reaching awareness campaigns since the launch. “FTA will continue to streamline the process for UAE citizens eligible for a VAT refund, allowing them to submit their requests easily on the FTA website,” he asserted. “These upgradations aim to simplify the process of VAT Refund, in line with the UAE leadership’s vision to develop a modern housing system that caters to citizens’ needs and offer them the best quality of life available.”

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FTA's NEW Digital Tax Stamp Design - FAQs

Date: 25 Oct, 2021

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External URL: https://www.tax.gov.ae/-/media/Files/EN/PDF/Guides/DTS-FAQ-Eng.pdf

UAE – October 25, 2021:

The FTA has released FAQS on the new Digital Tax Stamp Design that will replace the existing ones which are presently in use since January 1, 2019, as per Cabinet Decision No. (42) of 2018 on Marking Tobacco and Tobacco Products.

ZATCA warns Taxpayers against Tax Manipulation Trap by some Twitter accounts

Date: 24 Oct, 2021

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External URL: https://saudigazette.com.sa/article/612478

Riyadh – October 24, 2021:

The Zakat, Tax and Customs Authority has asked taxpayers to stay on guard against few Twitter accounts, that claim to help them evade payment of tax. This is either through making zero tax or reducing the amount of tax in an illegal way, which is in violation of the authority’s tax regulations.

The authority has requested taxpayers not to disclose their access data to their electronic portal including the secret code to such false account holders and refrain from dealing with them in any manner.

The authority is willing to raise awareness of taxpayers rights, in line with zakat and tax laws in the Kingdom and at the same time it will continue to take legal action against these misrepresenting accounts.

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UAE: FTA calls on Expo 2020 participants to avail VAT refund scheme

Date: 12 Oct, 2021

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External URL: https://www.gulftoday.ae/business/2021/10/11/wonderful-turnout

UAE – October 12, 2021:

Expo 2020 Dubai welcomed 411,768 ticketed visits in its first 10 days since the start of the mega event

Meanwhile, the Federal Tax Authority (FTA) has called on official participants to avail the Value Added Tax (VAT) refund scheme for taxes paid on goods and services connected with Expo 2020 Dubai.

Khalid Ali Al Bustani, Director-General of the FTA, said that the FTA has been cooperating with all relevant authorities to prepare for a smooth implementation of the procedures for the refund of VAT paid on goods and services connected with Expo 2020 Dubai.

Al Bustani stated that the FTA provides a telephone service to facilitate and expedite VAT registration procedures for international participants. The service offers clear instructions and details about the registration requirements. The FTA also processes special VAT refund requests, submitted through the integrated platform office, dedicated to receiving and processing requests by participants not registered for VAT.

The FTA has issued a comprehensive guide for official participants in Expo 2020 Dubai, which addresses the categories of taxes that can be refunded.

  • The first category is VAT incurred by official participants on goods and services in direct connection with the construction, installation, alteration, decoration, and dismantlement of exhibition space.
  • The second category is the VAT incurred by the official participants on goods and services in direct connection with the works and activities of organizing and operating the official participant’s exhibition space, any presentations and events taking place within the Expo 2020 site.


View the Guide to claim your Refund of VAT Paid on Goods and Services Connected with Expo 2020 Dubai
.

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ZATCA invites Taxpayers subject to the Withholding Tax to submit Tax Return

Date: 07 Oct, 2021

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External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_447.aspx

Riyadh- October 7, 2021:

​Zakat, Tax and Customs Authority (ZATCA) invites taxpayers from the business sector subject to the withholding tax in KSA to submit their tax return for last September before October 10, 2021.

Taxpayers need to quickly submit their tax returns through the website to avoid the filing fee for late submissions, which is 1% of the unsettled tax every 30 days since the due date.

Should you need more information about the withholding tax, kindly contact the Authority through the below contact details:

  • Unified number (19993) operating 24 hours a week
  • Twitter account (@zatca_Care)
  • E-mail (info@zatca.gov.sa)
  • Instant chats via the website

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Bahrain to double VAT rate to 10%

Date: 05 Oct, 2021

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External URL: https://gulfnews.com/business/bahrain-to-hike-vat-after-saudi-in-a-push-to-cut-deficit-1.82558380

Bahrain- October 5, 2021:

The Government of Bahrain is contemplating to double its rate of value-added tax (VAT) to 10 percent, in an effort to curb its large budget deficit and boost state revenue. The Gulf’s smallest economy is seeking ways to cut spending and bring its budget back into balance by 2024, an official close to the government said.

However, it’s still isn’t very clear when the higher VAT rate will be implemented though some news sources cite with effect from January 1, 2022.

This will be the Gulf’s second highest rate after Saudi Arabia tripled its VAT rate to 15 percent last year to bolster state revenue when oil prices slumped during Covid-19. The United Arab Emirates and Oman imposed a 5 percent VAT under a common 2018 framework by the six-nation GCC Council. Kuwait and Qatar are yet to implement the tax.

Click here to view more.

New Services launched by FTA to ease VAT refund process for Emiratis building new residences

Date: 03 Oct, 2021

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External URL: https://www.khaleejtimes.com/business/real-estate/uae-fta-launches-new-services-to-ease-vat-refund-process-for-emiratis-building-new-residences

UAE- October 3, 2021:

The Federal Tax Authority (FTA) has released new efficient services to help UAE nationals claim with ease the Value-Added Tax (VAT) they incurred on their newly built residences.

Different kinds of services are launched to raise the audience’s awareness, provide them with easy access to information and allow direct communications with FTA representatives. The two-way process also allows them to obtain feedback, along with top-quality services.

The initiative includes a weekly interactive virtual workshop, the “Virtual Session”, that brings housing authorities contractors, engineers, and construction experts in the UAE to offer consultations and clarification regarding the VAT refund process, for the benefit of Emiratis.

The new services also involves a “Personal Assistant” service, allowing applicants to book an appointment to directly communicate with FTA employees about the refund process.

For more information click here.

UAE elected vice-president of Belt and Road tax forum

Date: 25 Sep, 2021

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External URL: https://www.tax.gov.ae/press-releases/UAE-Elected-Vice-President-of-Belt-and-Road-Initiative-Tax-Administration-Cooperation-Forum

UAE- September 25, 2021:

For the second time in a row, the UAE has been elected as Vice President of the Belt and Road Initiative Tax Administration Cooperation Forum (BRITACOF) in its second edition, during the meetings that brought together participants from 57 countries around the globe.

The UAE represented by FTA Director General His Excellency Khalid Ali Al Bustani – was elected Vice President of the Forum for the second time after being elected in the first meeting of the Supervisory Board in China in April 2019.

The Second Belt and Road Initiative Tax Administration Cooperation Forum and the accompanying virtual exhibition discussed ways to collaborate on tax administration coordination between the Belt and Road initiative states. The three-day forum conducted via videoconferencing discussed the opportunities of the digital economy and analyzed ways to build an integrated digitalized tax system.

Click here to view more.

FTA adopts New Design for Digital Tax Stamps

Date: 24 Sep, 2021

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External URL: https://www.tax.gov.ae/press-releases/Federal-Tax-Authority-Adopts-New-Design-for-Digital-Tax-StampsAdhering-to-Best-and-Latest-Standards

UAE- September 24, 2021:

The Federal Tax Authority (FTA) announces the adoption of new features for ‘Digital Tax Stamps’ to be inserted on the packaging of all types of cigarettes, including electrically heated cigarettes and waterpipe tobacco (‘Mu’assel’) sold in local markets.

The new Stamps will replace the existing ones which are presently in use since January 1, 2019, as per Cabinet Decision No. (42) of 2018 on Marking Tobacco and Tobacco Products.

Decision No. (3) of 2021 for the new design will go into effect on October 1, 2021, to formally adopt the newly redesigned ‘Digital Tax Stamps’.

  • The first category of Stamps goes into effect from October 1, 2021 where the Stamps with the red design will be placed on packaging of all types of cigarettes, while those with the purple design will be applied to the packaging of electrically heated cigarettes and waterpipe tobacco, which are authorized for trade in local markets and arrival halls at airports.
  • The second category goes into effect January 1, 2022, where the Stamps with the green design would be placed on all cigarette packages, while those with a blue design would be applied to the packaging of electrically heated cigarettes and waterpipe tobacco, which are authorized for trade in duty-free shops in departure halls at airports.

The ‘Digital Tax Scheme for Tobacco and Tobacco Products’ aims to digitally track tobacco products from production and until they reach the end consumer to ensure compliance with the latest and best standards and ensure taxpayers pay the due Excise Tax. The redesign of the stamps is part of FTA continuous improvement plans that aim to enhance FTA procedures, protect consumers from commercial fraud, and combat tax evasion using advanced technological systems.

Click here to view more.

FTA encourages Registrants to Benefit from the Administrative Penalties Redetermination

Date: 23 Sep, 2021

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External URL: https://www.tax.gov.ae/press-releases/FTA-Calls-on-Tax-Registrants-To-Re-Determine-Tax-Penalties-14Sep-2021

UAE- September 23, 2021:

The Federal Tax Authority (FTA) has called on registrants to take advantage from the administrative penalties redetermination – to be equal to 30% of the total unpaid penalties. View the Cabinet Decision No. 49 of 2021 on Amending Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws.

The decision outlines 16 types of administrative penalties that have either been reduced or had the method of calculation amended, which came into effect on June 28, 2021, and includes reductions on administrative penalties to help taxpayers meet their obligations.

FTA outlined a set of conditions that need to be met in order to benefit from the redetermination of penalties.

First, the administrative penalty must have been imposed under Cabinet Decision No. 40 of 2017 before June 28, 2021, and that the administrative penalty due were not settled in full until June 27, 2021. Furthermore, the registrant should settle all due payable tax by December 31, 2021, and settle 30% of the total unsettled administrative penalties imposed before June 28, 2021, no later than December 31, 2021.

The FTA indicated that, should the registrant meet all the stipulated conditions, the administrative penalties will be re-determined to equal 30% of the total unpaid penalties that will appear on the FTA’s electronic system after December 31, 2021.

Click here to view more.

UAE: FTA offers 30% discount on unpaid penalties

Date: 15 Sep, 2021

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External URL: https://www.khaleejtimes.com/news/uae-tax-authority-offers-30-reduction-on-unpaid-penalties

UAE- September 15, 2021:

Tax regulation violators within the UAE can benefit from a 30 percent discount on unpaid penalties as per the recent Cabinet decision, the Federal Tax Authority (FTA) stated.

The liberal move intends to boost the UAE’s global business competitiveness by establishing a tax legislation environment that encourages self-compliance and offers significant support to the national economy.

The Cabinet Decision No. 49 of 2021 on Amending Provisions of Cabinet Decision No. 40 of 2017 outlines 16 types of administrative penalties that have either been reduced or had the method of calculation amended.

The amendments include administrative violations related to the application of Federal Law No. 7 of 2017 on Tax Procedures, Federal Decree-Law No. 7 of 2017 on Excise Tax, and Federal Decree-Law No. 8 of 2017 on Value Added Tax.

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ZATCA: 90 Days Left for the Enforcement of E-Invoicing Phase I

Date: 13 Sep, 2021

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External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_433.aspx

Riyadh- September 13, 2021:

Taxpayers who are subject to the E-invoicing regulations are urged to start the necessary preparations within their organizations to comply with the requirements of Phase One of E-invoicing ‘FATOORA’ that will be enforced in 90 days.

The authority clarified the requirements of Phase One:

  • Stopping the generation of handwritten or typed invoices through text editing software or figure analysis software
  • Ensuring the availability of an e-invoicing system or solution that is complaint with the requirements published by the authority.

The requirements to comply also include generating and storing e-invoices with all its elements, including the QR code for simplified tax invoice, the buyer’s tax registration number registered in VAT for the tax invoices, and invoice title in accordance to the generated tax invoice.

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Oman Tax Authority and National Center for Financial Information sign a cooperation program

Date: 12 Sep, 2021

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External URL: https://bit.ly/3E8RY03

Muscat- September 12, 2021:

Oman Tax Authority and National Center for Financial Information signed a cooperation program for combating money laundering, terrorism financing and tax evasion crimes at the Tax’s premises.

The joint cooperation program aims to coordinate efforts between the parties for the exchange of information, experience and find the best practices towards combating money laundering, terrorism financing and tax evasion crimes. The program also intends to organize training programs and specialized workshops to educate tax payers.

The program was signed by His Excellency Saud bin Nasir Al Shukaily, the Chairman of Tax Authority and Lieutenant Colonel Abdul Rahman bin Amir Al-Kiyumi, the Executive Chairman of the National Center for Financial Information.

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KSA: Government to bear VAT on private education services for citizens

Date: 06 Sep, 2021

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External URL: https://saudigazette.com.sa/article/610561/SAUDI-ARABIA/State-to-bear-VAT-on-private-educational-services-to-citizens

Riyadh- September 6, 2021:

The Zakat, Tax and Customs Authority has clarified that the government will bear value-added tax (VAT) on private educational services provided to citizens.

The services include tuition fees and other school expenses including the textbooks sold by private and international schools subject to tax and approved by the Ministry of Education.

The authority explained that this was in line with the Royal order to pay for VAT on behalf of citizens benefiting from the private educational services in the state.

Click here to read more.

Qatar: GTA published FAQs related to Transfer Pricing (TP)

Date: 05 Sep, 2021

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External URL: https://dhareeba.gov.qa/sap/bc/ui5_ui5/sap/zmcf_welcome/helpDoc/TransferPricingDeclarationMF_LFFAQs.pdf

Qatar- September 5, 2021:

GTA has published a Frequently Asked Questions (FAQ) document on the Transfer Pricing (TP) declaration, Master and Local files on the Dhareeba Tax Portal. The FAQs guide taxpayers on several matters relating to TP compliance, Master file and Local file documentation requirements. Practical examples to illustrate and clarify TP cases are cited throughout the document.

Previously, the GTA issued Resolution No. 4 of 2020, which set forth the various filing thresholds and stated that the filing requirements apply to taxable years beginning on or after 1 January 2020.

The FAQs emphasize on the responsibility and importance of proper and robust documentation as required by the Executive Regulations.

View the FAQs on the Dhareeba tax portal.

Electronic products under AED 30,000 exempted from Dubai customs service fees

Date: 03 Sep, 2021

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External URL: https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN_13_2021.pdf

UAE- September 3, 2021:

As per the Customs notice No. (13/2021) a new service charge exemption is applicable for movement of goods between companies.

The exemption is effective from 14 November 2021. The notice stipulates that Customs declarations with value not exceeding AED 30,000 shall be exempted from relevant Customs services charges.

The provisions of this notice apply to customs declarations in the following movement cases:

  • From GCC countries and rest of the world to the local market.
  • From the freezones and customs warehouses to the local market.
  • From GCC countries and the rest of the world to the freezone and customs warehouses.
  • From the local market to GCC countries and rest of the world.
  • From local market to the freezones and customs warehouses.
  • From freezones and customs warehouses to GCC countries and the rest of the world.
  • Temporary admission into the local market from rest of the world, freezones , customs warehouses and GCC countries.
  • Transfer within the same freezone.
  • Transit between freezones in the Emirate of Dubai
  • Transfer between customs warehouses in the Emirate of Dubai
  • From customs warehouses to freezones.
  • From freezones to customs warehouses.

The notice also reiterates that companies wishing to trade via e-commerce channels must first register on the Dubai Customs’ customer registration system. Additionally, it is clarified that logistics companies wishing to clear goods on behalf of their client companies must also register such clients in the same system.

This is in line with Dubai’s e-commerce strategy, which aims to strengthen Dubai’s position as the global capital of the new economy and global logistics platform for the region and create a flexible business environment.

KSA gears its switch over to E-Invoicing as per ZATCA

Date: 02 Sep, 2021

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External URL: https://saudigazette.com.sa/article/610228/SAUDI-ARABIA/FATOORAH-launched-as-Saudi-Arabia-set-to-switch-over-to-e-invoicing

KSA – September 2, 2021:

The Zakat, Tax and Customs Authority (“ZATCA”) launched the electronic invoicing project (FATOORAH) on August 24, 2021 to bring transparency into the economic transactions and promote fair competition. During the official inaugural ceremony, ZATCA highlighted the importance of the new E-invoicing system for its economy and provided an overview its implementation mechanism.

E-invoicing in KSA is given the deadline of December 4, 2021 for the Generation Phase (Phase I).

  • Phase 1 (Generation phase)- Specific criteria are to be adhered to for all invoices, credit notes and debit notes issued by taxpayers in KSA as of 4 December 2021.
  • Phase two (Integration Phase)- Additional requirements are to be fulfilled by 1 January 2023, where invoices need to be exchanged with and pre-approved by the tax authority. This warrants changing software currently being used and choosing one that is compliant with ZATCA’s directions.

ZATCA has published a Simplified Guide and Detailed E-Invoicing guide that comprises detailed information the applicability of E-Invoicing to various industries, types of invoices, taxable persons and transactions subject to invoicing and technical guidelines pertaining to E-Invoicing Solution Requirement.

ZATCA has also recently released a list of E-invoicing solutions providers who meet the qualification requirements.

The FATOORAH aims to narrow down disguised and illegal establishments. It will activate the consumer’s role in monitoring and reporting, bringing transparency over the movement of funds, control over crimes and other violations. When implemented accurately, it can alleviate the administrative burden both for businesses and the tax authority.

Read more…

Contact our Tax Experts for any clarifications.

KSA: Fatoora E-Invoicing Project launched by Governor of Zakat, Tax and Customs Authority

Date: 26 Aug, 2021

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External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_428.aspx

KSA – August 26, 2021:

The Zakat, Tax and Customs Authority (ZATCA) launched ‘Fatoora- The e-invoicing project’ which is a mandate in KSA from December 4, 2021.

  • The first phase mandates the issuance and filing of tax invoices and the relevant debit/ credit notices electronically
  • The second phase will be implemented in a phased manner from January 1, 2023, which will establish the integration of electronic systems for taxpayers and ZATCA requirements.

Speaking at the launch ceremony in the Four Seasons Hotel in Riyadh, ZATCA Governor Eng. Suhail bin Mohammed Abanmi emphasized that the Fatoora project is one of the most ambitious national projects led by the Authority and is a part of their effort to achieve the digital transformation goals outlined in the Kingdom’s Vision 2030. Eng. Abanmi stated that the ‘Fatoora’ project is aligned with the latest developments in the world’s leading economies and will have a tangible impact on the national economy.

He iterated that the project would promote fair competition and significantly contribute toward efforts by several government agencies to combat trade concealment.

View the Simplified Guidelines for E-Invoicing (Phase 1) and E-Invoicing Detailed Guidelines published by ZATCA.

The guidelines contain E-Invoicing (FATOORAH) requirements and the detailed technical requirements for taxpayers and E-Invoicing providers. It also includes detailed technical requirements such as invoice specifications and security specifications for the E-Invoicing application.

Click here to read more.

Contact our Tax Experts for any clarifications.

KSA: Deadline extended to 16 February 2022 for business licensing fraud offenders to legalize their status

Date: 24 Aug, 2021

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External URL: https://gulfnews.com/world/gulf/saudi/saudi-arabia-extends-amnesty-for-business-licensing-fraud-offenders-1.81745895

KSA – August 24, 2021:

Saudi Arabia has extended the grace period for business licensing fraud offenders to legalize their status to 16 February, 2022.

The period provides multiple options for violators by exempting those who apply to the Ministry of Trade to request rectification of their legal status from penalties and from paying income tax retroactively.

Dr. Majid Al Qasabi, Minister of Commerce, said the extension reflects the Kingdom’s keenness to provide the opportunity to more businesses to correct their legal status. A number of large and medium-sized firms, whose annual revenues exceeded more than 6 billion riyals, have benefited from the amnesty so far.

Anyone arrested by the ministry for committing a crime or violating the anti-business licensing fraud law before submitting a request to rectify their situation, or whoever was referred to the Public Prosecution, or the competent court, is not exempt.

Violators of the anti-concealment system can rectify their legal status by submitting an application through the Ministry of Commerce website

Applicants will have several options, including:

  • Introducing a new legal partner (Saudi or non-Saudi);
  • Selling, assigning or dissolving the business;
  • Transferring the ownership of the business to a non-Saudi after the latter obtains an investment license;
  • A non-Saudi can apply for a distinct residence visa, or an investment license to continue business;
  • Apply for final exit.

Saudi Arabia has tightened penalties for business licensing fraud, also known as Tasattur or cover-ups, in which foreign nationals owning businesses in the kingdom use the names of Saudi citizens. A new anti-business licensing fraud regime passed by the Saudi Cabinet seeks to eliminate the shadow economy and includes tough penalties for offenders of up to five years in prison and a fine of up to SR 5 million.

Continue to read more.

Kuwait likely to implement VAT

Date: 23 Aug, 2021

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External URL: https://www.arabtimesonline.com/news/kuwait-likely-to-implement-vat/

Kuwait – August 23, 2021:

Kuwait will most likely implement the Value Added Tax (VAT) either this year or by next year cites the latest World Bank report on the economies of the member-nations of the Gulf Cooperation Council (GCC).

The World Bank also predicted that the economy of Kuwait will increase by 2.4 percent within 2021; followed by a projected 3.2 percent growth in the next two years — 2022 and 2023.

The projections for Kuwait on the following economic indicators are:

  • Real Gross Domestic Product (GDP), percent change: 2.4 in 2021, 3.6 in 2022 and 2.8 in 2023
  • CPI inflation rate, percent average: 2.0 in 2021, 2.3 in 2022 and 2.5 in 2023
  • Government Revenues, percent GDP: 29.8 in 2021, 31.7 in 2022 and 42.1 in 2023
  • Government Expenditures, percent GDP: 52.5 in 2021, 51.0 in 2022 and 50.4 in 2023
  • Fiscal Balance, percent GDP: -22.6 in 2021, -19.3 in 2022 and -8.3 in 2023
  • General Government Gross Debt, percent GDP: 13.7 in 2021, 27.3 in 2022 and 44.1 in 2023

Click here to view more.

Saudi Arabia: ZATCA releases VAT Guideline for Government Bodies in KSA

Date: 19 Aug, 2021

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External URL: https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/VAT%20Guideline%20-%20Government%20Bodies.pdf

UAE – August 19, 2021:

The Saudi Zakat, Tax, and Customs Authority (ZATCA) has issued a VAT Guideline for Government Bodies in the Kingdom of Saudi Arabia . To view the guide click here.

The guide is directed towards Saudi Government bodies, with the objective to provide clarifications with respect to the interpretation of Economic Activity for VAT purposes in addition to the VAT treatment of transactions between persons and such bodies. The guideline provides information on the VAT treatment of activities undertaken by these bodies especially those activities that are subject to VAT and those that are outside the scope of VAT.

For further advice on specific transactions visit the official website at zatca.gov.sa which contains a wide range of tools and information to support persons subjected to VAT, as well as visual guidance materials and other relevant information.

Expo 2020 Official Participants are eligible for VAT Refund Scheme

Date: 11 Aug, 2021

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External URL: https://tax.gov.ae/en/services/VAT-Refund-of-Goods-and-Services-for-Expo-2020

UAE – August 11, 2021:

Did you know exhibitors in Expo 2020 are entitled to request for a refund on the VAT expenses incurred on the goods and services related to the exhibition?

FTA introduced a VAT Refund Scheme for Expo 2020 official participants to claim VAT refund incurred on expenses. Expo 2020 is a registered exhibition scheduled to take place in Dubai from 20 October 2020 to 10 April 2021. The official participants include countries and organizations that have received and accepted the official invitation from the UAE to participate in Expo 2020 as an exhibitor.

Cabinet Decision no. 1 of 2020 on the Refund of VAT Paid on Goods and Services for Official Participants in Expo 2020 Dubai replaces the Cabinet Decision no. 1 of 2019, which was issued earlier by the FTA. View the latest guide.

The guide provides guidance for official participants of Expo 2020 on the following:

  • The conditions which must be met to be entitled to claim the VAT refund.
  • The process to be followed to claim VAT.
  • Information required to complete the relevant forms.
  • Additional details on the registration requirements along with the importing and customs details are also covered in this guide.

These are 5 categories in which vat can be claimable are:

  • VAT incurred by the Official Participant on Goods and Services in direct connection with the construction, installation, alteration, decoration and dismantlement of their exhibition space.
  • VAT incurred by the Official Participant on Goods and Services in direct connection with the works and activities of organizing and operating the Official Participant’s exhibition space and any presentations and events within the Expo 2020 site.
  • VAT incurred by the Official Participant on Goods and Services relating to the actual operations of the Official Participant, provided that the value of each Good or Service for which the Office of the Official Participant makes a claim is not less than AED 200.
  • VAT incurred by the Official Participant in connection with all operations, services and activities provided for the purpose of participation in Expo 2020 Dubai, whether located within or outside the boundaries of the Expo 2020 Dubai site.
  • VAT incurred on import of Goods for personal use of the Official Participant’s Section Commissioner-General, Section Staff and the Beneficiaries

A few simple steps need to be followed for the refund:

  • Log into the FTA account.
  • Apply for refund as per the process available in the VAT refund user guide.
  • The FTA will review and approve the request within 20 working days.

Contact FTA’s Service Channels:

For registrants in the FTA system:
Link: eservices.tax.gov.ae

For non-registrants in the FTA system:
Email : expo2020@tax.gov.ae

To know more about the procedure of the service click here.

Contact our tax consultants:

Our tax experts can offer you consultancy services in connection with your activities related to Expo 2020. The list includes registration with FTA, eligibility of input tax recovery, VAT returns, submission of VAT refund application and timely completion of respective documentation.

UAE Nationals can request a VAT Refund for a Newly Built Residence

Date: 10 Aug, 2021

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External URL: https://tax.gov.ae/-/media/Files/EN/PDF/Guides/VAT-Refund-for-UAE-Nationals-Building-Residences---EN---24-05-2021.pdf

Dubai- August 10, 2021:

Did you know that UAE Nationals can request a VAT refund for a newly built building which meets the legal requirements of a new residence?

Emirati nationals have the right to a 5 percent value added tax (VAT) refund when constructing their homes, the Federal Tax Authority (FTA) has stated. FTA has issued VATGRH1 guide on ‘VAT Refund for UAE Nationals Building New Residence‘ to facilitate homeowners on how to claim the refund. It specifies that only UAE citizens have the right to ask for the refund. Also note that the refund option is available only for VAT relating to expenses incurred on the construction of a new residence for themselves or their family members and not for any commercial properties.

The VAT refund is to be claimed after completion of the new building which is ready to use. The owner must file a VAT refund application within 12 months from the date of completion of the newly built residence. Processing can take up to 20 days.

To read more about the VAT Refund Scheme on new construction click here.

Saudi Arabia records highest number of real estate transactions

Date: 09 Aug, 2021

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_816.aspx

Riyadh – August 9, 2021:

The Saudi Zakat, Tax and Customs Authority registered over 543,000 Real Estate Tax Transactions since its implementation in October 2020. The highest number of tax transactions were reported in Riyadh (125,110), followed by Jeddah (55,680), Buraidah (50,462), Makkah (18,955) and Madinah Al Munawwarah (18,557).

In accordance with the provisions of the Regulating Authority on real estate, the tax is imposed at a rate of 5% of the total real estate value. The tax is to be paid by the seller or disposer of the property and not the buyer.

The market has successfully adapted to this new tax, and this is certainly a positive sign for the real estate market in Saudi Arabia.

Read More.

FTA records 655 Tax Violations amounting to Dh 71.48 m in Q2-2021

Date: 08 Aug, 2021

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External URL: https://gulfnews.com/business/markets/uaes-federal-tax-authority-cracks-down-on-retailer-violations-finds-dh7148m-in-sums-owed-in-q2-2021-1.1626177690432

Dubai- August 8, 2021:

The Federal Tax Authority (FTA) conducted inspection checks of the local markets in tandem with the Ministry of Economy (MoE), Federal Customs Authority and other authorities.

It is astonishing to know that FTA recorded 655 tax violations amounting to Dh71.48 million in the second quarter of 2021. Around 2.86 million unregistered tobacco products without the Digital Tax Stamp (DTS) stamp were detected by FTA in addition to 202,000 other excise goods which include carbonated, energy and sweetened drinks/beverages.

FTA ramped up these inspections to ensure the compliance with tax procedures and protect consumers from trafficked products that do not adhere to quality specifications stipulated in the UAE.

Read More.

View the Introductory Guide to E-invoicing issued by GAZT

Date: 03 Aug, 2021

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External URL: https://gazt.gov.sa/en/RulesRegulations/Taxes/Documents/E-invoicing%20guideline.pdf

Riyadh- August 3, 2021:

The General Authority of Zakat and Tax has issued an Interactive Guide with Links for taxpayers subject to the E-invoicing regulation. It provides an overview on E-Invoicing, the implementation journey, compliance requirements and process rules covering the implementation phase.

The enforcement of E-invoicing will be mandated from December 4, 2021 and the integration will be done over a period beginning from January 1, 2023. Taxable persons are required to begin generating and storing electronic invoices.

NOTE: Date of enforcement of generation and storing of e-invoices -December 4th, 2021

Fines and penalties – All provisions related to tax invoices in the VAT Law are applicable to electronic invoices including fines and penalties.

Dubai Customs launches Trader Export Report service to enhance compliance and boost revenues

Date: 02 Aug, 2021

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External URL: https://gulfnews.com/business/dubai-customs-launches-trader-export-report-service-to-enhance-compliance-abidance-and-revenues-1.1627711579620

UAE- August 2, 2021:

Dubai Customs, in cooperation with the Federal Tax Authority (FTA), launched the Trader Export Report service to help businesses overcome the challenges, enhance compliance and boost their revenues. The new service will help clearance and shipping agents achieve Zero Rating of supply of goods exported within 90 days of export date regardless of the import date.

The service was launched virtually in the presence of Ahmed Mahboob Muabih, Director General of Dubai Customs and Khalid Ali Al Bustani, Director General, FTA, along with Dubai Customs’ executive directors and heads of customs departments and centers.

Traders must meet all the Zero Rating requirements that include owning an exit certificate and relevant commercial documents to prove exportation process, and exporting the shipment within the specified time frame. This service applies to imported goods only that will be exported later and not to goods possessed locally.

The new service will be available on Dubai Trade Portal, and it will apply to certain types of declarations including:

  • Import to Local from ROW
  • Import to Local from GCC (Statistical Import)
  • Import for Re Export to Local from ROW
  • Import to CW from ROW
  • Transit (ROW to ROW)
  • Cargo Transfer from CTO to CH (Different Locations)

Read More.


*Zero-rated supplies in VAT refers to the taxable supply of goods and services on which VAT is charged at zero rate.
Zero rated VAT and exempted VAT are different from each other. Zero rated VAT in UAE means you must charge VAT at 0 percent to your customers. Exempt VAT means you must not charge VAT.

Qatar: GTA extends transfer pricing filing deadline to 30 September

Date: 26 Jul, 2021

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External URL: https://bit.ly/2VbT09w

Qatar- July 26, 2021:

Through Decision No (8) of 2021 issued on 17 June, General Tax Authority (GTA) in Qatar announced an extension to the deadline for submitting a transfer pricing master file and local file for the fiscal year ending December 31, 2020. The filing can be submitted by September 30, 2021, instead of June 30, 2021.

GTA issued transfer pricing regulations effective from January 1, 2020. Under Article (8) of Decision No 4 of 2020, resident entities and permanent establishments of non-resident entities in Qatar must submit transfer pricing documentation in the form of master file and local file if they undertake cross-border transactions and have a turnover of more than Qatari Riyal 50,000,000 (USD 14 million) in the financial year.

The objective of the master file is to provide the GTA with high-level information regarding the global business operations and transfer pricing policies of a taxpayer. The local file is meant to provide detailed transactional information within a certain jurisdiction. The deadline for documentation filing was six months following the end of the fiscal year i.e 30 June 2021.

The extension issued on 17 June is an exception to the provisions of Article (8) and will provide taxpayers with more time to collate their documents. Taxpayers need to ensure that their documentation is robust to support their transfer pricing policies.

Read More.

ZATCA invites Taxpayers from the Business Sector to submit Value-added Tax Returns

Date: 19 Jul, 2021

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External URL: https://gazt.gov.sa/ar/MediaCenter/News/Pages/news_804.aspx

UAE- July 19, 2021:

The Zakat, Tax and Customs Authority (ZATCA) has called on taxpayers from the business sector to submit their VAT returns for the month of last June and the second quarter of 2021 AD no later than July 31, 2021.

The Authority urged business sector taxpayers to submit their tax returns online on their website (gazt.gov.sa) in order to avoid the penalties for not submitting the declaration within the prescribed period, at a minimum of 5% and a maximum of 25% of the tax value.

Taxpayers from the business sector wishing to seek more information can contact the Authority in the following ways:

  • The unified number for the call center (19993) 24/7
  • On Twitter (@Zatca_Care)
  • Send an e-mail (info@zatca.gov.sa)

Click here to view more.

Saudi Arabia releases Circular on VAT refund to eligible real estate developers

Date: 17 Jul, 2021

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External URL: https://bit.ly/3xIYjM5

UAE- July 17, 2021:

The Zakat, Tax and Customs Authority (ZATCA) has released a Circular No. 2106002 that details the process of registration for real estate developers for the VAT refund incurred in relation to exempt real estate activities.

Click here to view the circular issued in Arabic at the moment.

FTA published an Emailer on the steps for Making Payments through e-Services

Date: 14 Jul, 2021

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UAE- July 14, 2021:

Federal Tax Authority (FTA) have circulated an Emailer to Tax registrants on 13 July 2021 elaborating on the Steps for Processing Payments through e-Services.

Click here to download the Circular in pdf version.

ZATCA outlines 3 steps for taxpayers in first phase of E-invoicing

Date: 11 Jul, 2021

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External URL: https://saudigazette.com.sa/article/608583/SAUDI-ARABIA/Three-steps-outlined-for-taxpayers-to-take-in-first-phase-of-E-invoicing

Riyadh- July 11, 2021:

The Zakat, Tax and Customs Authority (ZATCA) has highlighted three main steps for taxpayers who are subject to the E-invoicing (FATOORAH) regulation. It outlines the compliance requirements and process rules covering the generation and integration phase. The first phase will be mandated from December 4, 2021 and the integration will be done over a period beginning from January 1, 2023.

The three steps in the first phase are:

  • Stop issuing handwritten invoices, or invoices issued manually through text editing softwares
  • Use a compliant E-invoicing system to generate and store the invoices electronically, which can be a cash register machine, a cloud system, or an enterprise resource planning software (ERP).
  • Additionally, the E-invoices must include all the requirements of a tax invoice. The simplified tax invoices must include a QR code, and the tax invoices must include the VAT number of the buyer (a registered VAT taxpayer).
  • The Authority aims to gradually introduce the implementation of E-invoicing through well-laid out steps and requirements, and would continue to inform and educate taxpayers who are subject to the E-invoicing regulation.

Read More.

Oman Tax Authority released a 'VAT Taxpayer Guide'

Date: 07 Jul, 2021

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External URL: http://www.allaboutvat.com/wp-content/uploads/2021-07-06-VAT-Taxpayer-Guide-VAT-Return-Filing.pdf

Muscat- July 7, 2021:

The Oman Tax Authority published on its website a ‘VAT Taxpayer Guide‘ to offer guidance to taxpayers on filing their VAT returns. The guide aims to provide a better general understanding of taxpayers’ tax obligations. The document provides a step-by-step overview of the OTA’s VAT compliance expectations pertaining to :

  • VAT Registration
  • Filing a VAT return
  • VAT return payment or refund
  • Penalties
  • Record Keeping

For more information, please contact the TA:

Oman Tax Authority
Muscat, Ruwi
P.O. Box: 285, P.C. 100
Telephone: +968 2474 6996
Email: info@taxoman.gov.om

Submit VAT Reconsideration Form to challenge FTA's Decision

Date: 05 Jul, 2021

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External URL: https://www.tax.gov.ae/en/e-forms/reconsideration-form


UAE- July 5, 2021:

Businesses that function in the UAE must have thorough knowledge about the Tax Laws in the region. The Federal Tax Authority (FTA) is the Governing Authority that regulates tax laws, tax collections and penalties for non-compliance. A failure to comply with the VAT/Tax regulations will attract heavy penalties.

However, if the businesses are not satisfied with penalties imposed by FTA, they can officially request the Authority to revise it by filing a VAT reconsideration form (as per Article (27) of the Federal Law No. (7) of 2017 on Tax Procedures). This option is to address the grievances of the businesses that are not satisfied with the penalties levied or other decisions imposed on them by the FTA and to get a waiver on the penalties.

The request for reconsideration must be submitted via the FTA’s website within 20 business days from the date of being notified of the decision being reconsidered. The request form must be duly filled in Arabic for submission, otherwise it will be rejected. Along with the application, all the supporting documents and evidence should also be submitted in the Arabic language. You can avail assistance from experienced Tax agents in Dubai to address the language barrier and gain expert knowledge on the tax regulations.

FTA may levy penalties on businesses for the following reasons:

  • Failure to file VAT Returns within the time frame
  • Delay in settlement of due tax
  • Late VAT registration
  • Late VAT deregistration
  • Lack of proper records or structured documentation
  • Submission of erroneous documents/ incorrect information

The UAE VAT reconsideration form can also be submitted when the taxable person disagrees over FTA’s decisions such as VAT rate treatment, exception of registration and other tax assessments.

Read more…

FTA has set up Taxpayer Support Centers in Dubai and Abu Dhabi

Date: 03 Jul, 2021

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UAE- July 3, 2021:

FTA has set up Taxpayer Support Centers in Dubai and Abu Dhabi. These additional contact centers have dedicated staff to respond to all tax related queries and support taxpayers with any issues they may be facing.

Below are the address of the Taxpayer Support Centers:

Dubai:

Central Park Towers, DIFC P2 Floor

Abu Dhabi:

Emirates Property Investment Company, Ground Floor.

Saudi Arabia released VAT guideline for Insurance & Reinsurance Activities

Date: 02 Jul, 2021

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External URL: https://gazt.gov.sa/en/HelpCenter/guidelines/Documents/VAT%20Circular_Insurance%20%20Re-insurance_EN.pdf

Riyadh- July 2, 2021:

Zakat, Tax and Customs Authority (ZATCA) issued a guide to throw clarifications on the insurance and reinsurance activities made by businesses and the associated VAT implications. The guide outlines the services that will be recognized under insurance/ reinsurance activities and along with the applicable VAT treatments.

The guide further publishes the implications of insurance claims, reinsurer’s share of claim, principles relating to VAT deductions and partial VAT deductions.

View the VAT guidelines in Arabic or English.

Kindly seek expert advice if you have any doubts on this subject.

Saudi Arabia released Circular on the Reverse Charge Mechanism (RCM) Application

Date: 01 Jul, 2021

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External URL: https://gazt.gov.sa/en/MediaCenter/Publications/Documents/VAT%20Circular%20-%20RCM-EN.pdf


Riyadh- July 1, 2021:

Zakat, Tax and Customs Authority (ZATCA) issued Circular No. 2106001 explaining the application of Reverse Charge Mechanism (RCM) in accordance with the unified VAT Agreement of the GCC States and KSA VAT Law. The circular throws clarification on the application of RCM rules to businesses that receive a supply of goods or services from non-resident suppliers.

Reverse Charge Mechanism is defined as the mechanism by which the Taxable Customer is obligated to pay the Tax due on behalf of the Supplier, and is liable for all the obligations provided for in the Agreement and the Local Law. Reverse Charge Supplies refer to Supplies on which the Customer is obliged to pay the VAT due under the Reverse Charge Mechanism

RCM is only due on services which are taxable in nature and received by:

  • A VAT Registered Taxpayer from a non GCC resident supplier;
  • A taxable customer from suppliers resident in another GCC state (until E-Service System for Intra-GCC supplies is implemented).

This circular is a must read for all taxable persons receiving supplies from non-resident suppliers to ensure that the tax treatment being followed is in accordance with the applicable VAT legislations. View the Circular in English or Arabic.

Kindly seek expert advice if you have any doubts on this subject.

'Zakat, Tax and Customs' Invites Taxpayers to go through the Simplified Guide to Facilitate E-Invoicing (FATOORAH)

Date: 29 Jun, 2021

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External URL: https://gazt.gov.sa/en/MediaCenter/News/Pages/News_794.aspx

Riyadh- June 29, 2021:

The Zakat, Tax and Customs Authority requests all taxpayers to go through the simplified guide on the E-Invoicing (FATOORAH) page.

The guide includes the following:

  • Requirements for compliance with E-Invoicing (FATOORAH) and the phases of the implementation enforceable as of December 4, 2021.
  • Details on the two types of invoices, Standard tax invoice, which is used usually between two VAT registered business, and the Simplified tax invoice, which is used usually between business and customer.
  • Explanation on the way E-Invoicing works, and the prohibited functions that taxpayers should avoid when the regulation is enforced.

All taxpayers, solution providers and those interested can send inquiries related to E-Invoicing via:

  • The unified number (19993) that works 24/7.
  • Twitter account (@Gazt_care).
  • E-mail (info@gazt.gov.sa).
  • Instant chats via the website (gazt.gov.sa).​

Click here to read more.

Oman Tax Authority requests Tax Payers to furnish Transferring Entity details when transferring amounts to Government Accounts

Date: 28 Jun, 2021

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External URL: https://tms.taxoman.gov.om/portal/web/taxportal/-/circular-1/2021-?redirect=%2Fportal%2Fweb%2Ftaxportal%2Fexcise

Muscat- June 28, 2021:

With reference to the circular of the Central Bank of Oman, dated 22 June, 2021 – all banks operating in the Sultanate are obligated not to deposit / transfer any amounts to Government accounts, without mentioning the details of depositing or transferring entity.

Tax Authority requests all taxpayers to include the details according to the type of tax, when they deposit or transfer any amounts to the bank accounts of the Tax Authority, as depicted in the pdf.

View the Full Circular.

FTA's New Decision Emailer urges Tax Payers to review their Tax Payables and pay Taxes before 28 June 2021

Date: 27 Jun, 2021

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External URL: https://www.tax.gov.ae/press-releases/Electronic-Tax-Balance-Services

UAE- June 27, 2021:

Federal Tax Authority (FTA) released a New Decision Emailer on 25 June 2021 informing tax payers that they can view how much of their balance is related to tax and how much is related to administrative penalties on the My Payments page, after they log into E-Services.

This is with regards to the Cabinet Decision No 49 of 2021 on the Administrative Penalties for Violation of Tax Laws in the UAE.

The link will open a window that includes the details of :

  • Tax Payable
  • Late Registration Penalty
  • Other Penalties Payable
  • Net Payable Amount
  • Total Credit

Tax payers have to review their My Payments page and ensure the tax is paid before 28 June 2021 in order not to incur new administrative penalties.

FTA would also be launching a full dashboard with Tax Payable and Administrative Penalties Payable as well as outstanding balances in relation to Cabinet Decision 49 of 2021 on 28 June 2021.

Click here to view the New Decision Emailer.

Read Also : The Federal Tax Authority encourages registrants to take advantage of penalty redetermination introduced by Cabinet Decision No. 49 of 2021, effective on 28th June, 2021

Qatar and Rwanda Signs Double Tax Avoidance Agreement

Date: 25 Jun, 2021

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External URL: https://www.gta.gov.qa/en/qatar-and-rwanda-signs-double-tax-avoidance-agreement/

Doha- June 25, 2021:

The State of Qatar and the Republic of Rwanda have signed an agreement to avoid double taxation and prevent financial evasion between the governments of the two countries, at the General Tax Authority’s (GTA) headquarters in Doha.

The agreement was signed by His Excellency Ahmed bin Issa Al Mohannadi, the GTA’s President and His Excellency Francois Nkulikiyimfura, Rwanda’s Ambassador to Doha, in the presence of His Excellency Ambassador Abdulrahman bin Mohammed Al Dosari, Director of African Affairs Department at the Ministry of Foreign Affairs.

The agreement aims to eliminate double taxation between the two countries, solve obstacles that may restrict the movement of capital and encourage trade exchange, increase investment opportunities and enhance international standards of transparency through the exchange of documented financial information.

Click here to read more.

GTA Extends Corporate Income Tax deadlines for Qatari companies (Aug 31) and Non-Qatari companies (Jun 30)

Date: 24 Jun, 2021

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External URL: https://www.gta.gov.qa/en/deadline-for-filing-tax-returns-for-qatari-companies-aug-31-non-qatari-companies-june-30/

Doha- June 24, 2021:

General Tax Authority (GTA) announced the extension of 2020 corporate income tax filing deadlines to:

  • June 30, 2021 for foreign companies (Non-Qatari companies that have a foreign partner’s share)
  • August 31, 2021 from June 30 for tax-exempt companies and permanent establishments owned by Qatari citizens and Gulf Cooperation Council (GCC) citizens

This came in light of the difficult circumstances prevalent in the country due to the epidemic, and in an attempt by the authority to enhance tax compliance and lessen the burdens on taxpayers.

The agency announced that simplified tax filing forms must be submitted by companies with capital of less than 1 million Qatari Riyal (US$274,725) and with annual revenues of less than 5 million Riyal (US$1.3 million).

Click here to read more.

FTA organizes a blood donation campaign to strengthen the values of social responsibility in employees

Date: 22 Jun, 2021

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External URL: https://www.tax.gov.ae/press-releases/In-collaboration-with-the-Abu-Dhabi-Blood-Bank-and--Dubai-Health-Authority

UAE- June 22, 2021:

The Federal Tax Authority (FTA) conducted a blood donation campaign on June 14, 2021 in collaboration with the Abu Dhabi Blood Bank and the Dubai Health Authority under the 2021 World Blood Donor Day slogan, “Give Blood and Keep the World Beating”. The Authority plans to strengthen its activities in areas of social responsibility and support voluntary activities, emphasizing the importance of blood donation as a humanitarian initiative. A large number of donors took part and donated their blood.

His Excellency Khalid Ali Al-Bustani, Director General of the FTA, said “The blood donation campaign had seen wide participation from the staff members to support the community. The noble act saves millions of lives worldwide and ensures patients and accident victims have adequate blood supplies when in need of transfusions”.

His Excellency concluded that “Humanitarian acts are the most fundamental principles of community-building and the FTA is keen to organize more corporate social responsibility events.”

Click here to read more.

UAE Federal Tax Authority launches smart app to help consumers detect non-compliant tobacco products

Date: 17 Jun, 2021

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External URL: http://www.allaboutvat.com/uae-federal-tax-authority-launches-smart-app-to-help-consumers-detect-non-compliant-tobacco-products/

UAE- June 17, 2021:

As part of its ongoing efforts to protect consumers from commercial fraud and combat tax evasion with various mechanisms, the Federal Tax Authority (FTA) of the UAE has launched an innovative smart application for consumer’s use. This latest technology allows consumers to scan the digital tobacco products and detect illegal products so that they can be reported to the FTA through the application.

The application has been launched under the banner, “Monitor yourself, fight fraud”. The users can install the app, known as ‘FTA DTS’, on their smartphones via the Apple Store and Google Play.

The FTA explained that the application enables consumers to scan the stamps placed on the tobacco packages or tobacco products to verify and ensure that it is an Authority accredited digital tax stamp. Should the consumer discover that the stamps are not accredited, they can file a report to the FTA directly from the smart application. The Authority will then cooperate with the relevant authorities to take legal actions against violators.

Read more to know the objectives and method to use the Smart App.

Read more about the Digital Tax Stamp Scheme

Get your queries addressed by our tax experts.

FTA's first tax agent virtual session introduced the latest developments regarding the tax legislative environment

Date: 16 Jun, 2021

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External URL: http://wam.ae/en/details/1395302943574

UAE- June 16, 2021:

The Federal Tax Authority (FTA) has confirmed during its first tax agent virtual session of 2021 that Cabinet Decision No. 49 of 2021 (New Resolution), amending provisions of Cabinet Decision No. 40/2017 (Old Decision) imposed for the violation of Tax Laws in the UAE provides relief as a measure to support businesses and allows the re-determination of unpaid due administrative penalties which were imposed on taxable persons before 28th June, 2021.

The FTA organised the virtual session to introduce the latest developments regarding the tax legislative environment. The session was attended by 268 authorised tax agents, FTA representatives and officials. A detailed presentation on the implementation of the new decision was showcased, in addition to the conditions required to benefit from the new decision.

Cabinet Decision No. 49 of 2021 states three conditions that need to be fulfilled for tax registrants to benefit from the re-determination of unpaid administrative penalties to be 30 percent of the value due on 28th June 2021.

  • The first condition is that the administrative penalty must be imposed under Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violating Tax Laws in the UAE before 28th June, 2021, which is the effective date of the new decision, and remain outstanding on such date.
  • The second is the tax registrant must settle all payable tax by 31st December, 2021.
  • The third is that Tax registrants must pay 30 percent of administrative penalties payable and unsettled by 28th June, 2021, on or before 31st December 2021.

Should the registrant meet all these conditions, the FTA will re-determine (after 31st December 2021) the unsettled payable administrative penalties due on 28th June, 2021, to be equal to 30 percent of such unsettled penalties. This will exonerate the tax registrant from paying the remaining 70 percent and the relief will be applied automatically when the three conditions are fulfilled.

FTA representatives also gave an overview of the 16 violations and administrative penalties which have been amended either in value or in the calculation method. During the session, various queries raised by tax agents about the amendments of administrative penalties were clarified.

Read : FTA releases Cabinet Decision No. 49/2021 – Amendments of Penalties for Violation of Tax Laws in the UAE

Read Also : FTA releases two new Public Clarifications on amendments to administrative penalties and redetermination of some penalties already imposed

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FTA releases Cabinet Decision No. 49/2021 - Amendments of Penalties for Violation of Tax Laws in the UAE

Date: 10 Jun, 2021

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External URL: https://www.tax.gov.ae/-/media/Files/FTA/links/Legislation/Federal-Tax-Procedures/Cabinet-Decision-No-49-of-2021--For-Publishing.pdf

UAE- June 10, 2021:

The Federal Tax Authority (FTA) has revised the tax penalties by issuing Decision No. 49/2021 (New Resolution), amending provisions of Cabinet Decision No. 40/2017 (Old Decision) imposed for the violation of Tax Laws in the UAE. Prior to the issuance of the New Decision, taxpayers were faced with heavy penalties for non-compliance under the regulations. Although the penalties imposed under the previous Cabinet Resolution were to reduce non-compliance and to be more compliant with the law, these always posed a heavy burden on taxpayers.

As per Cabinet Decision No. 49/2021 amendments of penalties for violation of tax laws aims to support registrants in fulfilling their tax obligations.

Kindly note the following:

  • The Decision will go into effect starting from 28 June 2021.
  • The Decision reduces many administrative penalties imposed on the violation of tax laws post 28 June 2021.
  • The Decision allows registrants who have been penalized prior to the effective date of the Decision to benefit from a penalty redetermination scheme, where they would only be required to settle 30% of their payable administrative penalties outstanding on 28 June 2021 subject to meeting the requirements specified in the Decision.

In order to benefit from the penalty redetermination scheme, the FTA urges registrants to settle all pending tax until 31 December 2021 and 30% of the total administrative penalties imposed and outstanding on 28 June 2021, no later than 31 December 2021.

For more details, please click the links below.

UAE and Israel Sign Tax Treaty

Date: 06 Jun, 2021

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External URL: https://www.khaleejtimes.com/business/economy/uae-israel-sign-treaty-to-avoid-double-taxation

UAE- June 6, 2021:

The UAE and Israel signed a tax treaty on 31st May, 2021 in order to avoid double taxation. This will help promote bilateral trade, boost economic cooperation and investment in years to come. The tax convention, once ratified by ministers and parliament this year, will come into effect on January 1, 2022.

The move comes following the peace deal between Israel and the UAE to spur business development between the countries after they normalised relations last year in August 2020.

According to the Israeli Government’s announcement, the treaty is based on the Organisation for Economic Co-operation and Development Model Tax Convention on Income and on Capital (OECD Model) and covers areas including double-taxation, non-discrimination, exchange of information and anti-avoidance.

The introduction of the tax treaty will enable further influx of investment and trade between the two countries, in line with the aim to unlock economic potential in the region.

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FTA releases two new Public Clarifications on amendments to administrative penalties and redetermination of some penalties already imposed

Date: 30 May, 2021

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External URL: https://www.tax.gov.ae/-/media/Files/FTA/links/Public-Clarification/TAXP001---Amendment-of-Penalties---27-05-2021.pdf

UAE- May 30, 2021:

As part of its ongoing awareness-raising efforts, the Federal Tax Authority (FTA) has issued two new detailed public clarifications that aim to familiarize persons with simplified explanation on tax aspects, enabling them to apply the tax principles accurately.

The first public clarification outlines the fundamental amendments to the table of administrative penalties, in order to ensure certainty of the correct application of these amended penalties.

Click here to view the Tax Procedures Public Clarification- Amendments to the Penalties Regime

The second public clarification details the mechanism used to re-determine some administrative penalties that were imposed before the effective date of the new amendment on June 28, 2021. This decision is applicable on all administrative penalties imposed whether in respect of tax procedures, VAT or Excise Tax.

Click here to view the Tax Procedures Public Clarification – Redetermination of Administrative Penalties Levied Prior to the Effective Date of Cabinet Decision No. 49 of 2021

For any queries you may contact our Tax Experts.

UAE reduces penalties for various tax law violations

Date: 29 May, 2021

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External URL: https://www.khaleejtimes.com/business/local/uae-reduces-penalties-for-violating-tax-laws

UAE- May 29, 2021:

The Federal Tax Authority (FTA) announced a relief to businesses by reducing penalties to facilitate them in filing an accurate tax return.

Sixteen types of administrative penalties for violation of tax laws in UAE have either been reduced or had the method of calculation amended under the latest initiative in line with Cabinet Decision No. 49 of 2021. The decision is designed to support tax registrants and help them fulfill their tax obligations.

Khalid Ali Al Bustani, director-general of FTA, said the new amendment will become effective on June 28, 2021, and will reduce many administrative penalties imposed for violating tax laws. He said late payment penalty will not be imposed on voluntary disclosures if payment is settled within 20 business days of submitting the voluntary disclosure.

“This comes as part of the wise leadership’s directives to implement the tax system according to the best standards that ensure further growth for the national economy and help achieve transparency and economic momentum. This provides a resilient tax legislative environment that encourages self-compliance and keeps pace with change through constant issuance of decisions in accordance with phased requirements,” Al Bustani said.

The FTA director-general called on tax registrants to take advantage of the important benefits provided by the new amendment as it provides more relief to business sectors in order to support their effective contribution to boosting the national economy’s growth.

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For any queries you may contact our Tax Experts.

ZATCA: Taxpayers to expedite Preparation for E-billing Requirements into effect on Dec 4, 2021

Date: 07 Nov, 2021

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External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_459.aspx

Riyadh – November 7, 2021:

The Zakat, Tax and Customs Authority (ZATCA) has called on taxpayers subject to the electronic billing regulation, to expedite the necessary preparation in line with the first phase of E-Invoicing requirements, with only days remaining to come into force on December 4, 2021.

The authority stressed that establishments are to completely stop using handwritten invoices or invoices written on computers through text editors or number analysis programs, and ensure there is a technical solution for E-invoicing compatible with its requirements. The requirements also include the issuance and preservation of electronic invoices with all elements, including the QR code for simplified tax invoices, and the tax number of the buyer registered in the VAT for tax invoices, in addition to including the invoice address, according to the issued type.

The authority said that taxpayers subject to electronic invoicing can view the non-binding indicative list for providers of technical solutions for electronic invoicing, in order to choose the appropriate technical solution as per size of the facility and the type of sector.

**It’s not clear from the list that the provision of electronic billing solutions is limited to them, but the taxpayer is considered legal when he meets the requirements using any technical solution.

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