Date: 21 Mar, 2023

External URL: Federal Tax Authority release a guideline on Input Tax Apportionment

Dubai March 21, 2023:

On 20 March 2023, the Federal Tax Authority release a guideline on Input Tax Apportionment (VATGIT1) to provide in understanding the input tax apportionment and special methods for input tax apportionment when applying the VAT legislation.

This document describes the rules and methods for input VAT recovery when both VAT taxable and VAT exempt activities are performed.

In addition, VATG1 will replace the previously released Input Tax Apportionment: Special Methods VAT Guide.

Read More.

Date: 19 Mar, 2023

External URL: https://www.bizbahrain.com/no-imported-waterpipe-tobacco-molasses-products-without-digital-stamps-allowed-in-bahrain/

Dubai March 19, 2023:

The National Bureau for Revenue (NBR) in cooperation with De La Rue announced the successful completion of the first implementation milestone of the Digital Stamps Scheme on waterpipe tobacco “molasses” products. This scheme aims to track excise goods from the manufacturing stage to the consumption point through digital stamps, which will protect against the circulation of counterfeit or illegal products.

The National Bureau for Revenue (NBR) announced that starting from 19 March 2023, the import of waterpipe tobacco products without a digital stamp will be prohibited through the customs points of entry in Bahrain.

Date: 17 Mar, 2023

External URL: http://www.allaboutvat.com/wp-content/uploads/Executive-Regulation-of-Federal-Decree-Law-No-8-of-2017-Publish-17112022.pdf

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.

Date: 15 Mar, 2023

External URL: https://www.thenationalnews.com/business/economy/2023/03/03/uae-and-turkey-sign-comprehensive-economic-partnership-agreement/

Dubai March 15, 2023:

The United Arab Emirates and Turkey signed a comprehensive economic partnership agreement (CEPA) in Abu Dhabi. The aim of the deal is to increase trade between the two countries to $40 billion in the next five years and create thousands of new jobs.

Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in Abu Dhabi that the agreement was a milestone for the region.’It promises to write a new chapter in the UAE-Turkey bilateral relations, transforming long-standing friendship into a dynamic partnership for growth’ he said. ‘The agreement, which is expected to come into effect from the middle of this year, will create 25,000 highly skilled jobs in the UAE and 100,000 jobs in the Turkish market in the next 10 years’, Dr Al Zeyoudi told.

Speaking in Istanbul Turkish President Tayyip Erdogan said ‘The Comprehensive Economic Partnership Agreement (CEPA) will certainly take economic and trade relations between the two countries to a new phase’.

View More.

Date: 13 Mar, 2023

External URL: http://www.allaboutvat.com/wp-content/uploads/2023-03-13-EXTP010-1.pdf

Dubai March 13, 2023:

The Federal Tax Authority (FTA) of UAE has issued the Excise Tax Public Clarification EXTP010 on ‘ Registration of Warehouse Keeper and Registration and Renewal of Registration of Designated Zones’. This new issue replaces EXTP005 effective from 1st April 2023.

Every designated zone in the UAE is required to have an appointed warehouse keeper who is responsible for overseeing the operation of the designated zone and ensuring that the conditions and security requirements imposed over the designated zone continue to be met. A warehouse keeper must apply to the FTA to be authorised to oversee a designated zone.

This Public Clarification provides more details on these conditions and criteria to register as a warehouse keeper and to register or renew the registration of a designated zone, effective from 1 April 2023.

Date: 07 Mar, 2023

External URL: https://www.khaleejtimes.com/life-and-living/dubai-suspends-new-customs-duty-on-international-goods-above-dh300

Dubai March 7, 2023:

The new customs duty, which was to be levied on goods bought internationally with a value of more than AED 300 will no longer apply in Dubai as of March 1, 2023. This is according to an email sent by Dubai Customs, which also announced that as of March 1, 2023 the previous threshold of AED 1,000 for the exemption of parcels and shipments has been reinstated.

In January this year, Dubai introduced new customs duty on goods bought internationally with a value of more than AED 300, which earlier only applied to goods exceeding AED 1,000.

The email said, “Kindly be informed that Paragraph (a) of Article (2) of Customs Notice 5/2022 related to exemption of consignments with value not exceeding AED 300 has been suspended and that it has been decided to re-establish the previous threshold for exemption of parcels/shipments of AED 1,000 effective March 1, 2023, until further notice.”

Read More.

Date: 05 Mar, 2023

External URL: https://www.muscatdaily.com/2023/02/28/tax-authority-launches-new-app-to-combat-counterfeit-goods-in-oman/

Muscat March 5, 2023:

The Oman Tax Authority (OTA) has launched an app called ‘Ta’akad’ to protect consumers from counterfeit goods and verify the validity of tax stamps on products.The app is available on both Android and IOS devices and allows consumers to report any commodity which violates the law.

An official at Tax Authority said, ‘The app aims to prevent the spread of counterfeit goods in the local markets and ensures the validity of the tax stamp on the products and protects the consumer.’ He added, ‘The consumer can now report any commodity that violates the law through the application.’

The Tax Authority is also working with the Royal Oman Police and the Consumer Protection Authority to prevent the entry of cigarettes and tobacco products without the distinctive tax stamp into the country.

View More.

Date: 04 Mar, 2023

External URL: https://www.nbr.gov.bh/releases/153

Manama March 4, 2023:

The National Bureau of Revenue (NBR), in cooperation with De La Rue International Ltd., successfully completed the first phase of applying the distinctive mark system (digital stamps) on hookah tobacco products (Moassel). Under this control system, digital stamps containing security codes are placed on the excise goods to track them from the manufacturing stage to the point of consumption, which helps reduce illegal trade and prevent the circulation of counterfeit products.

The NBR indicated that registration in the digital stamp system is concerned with selective importers of hookah tobacco products (Moassal), manufacturers and related institutions in the supply chain starting from production and import until offering products in the local markets in the Kingdom of Bahrain.

The agency stressed the importance of the first phase of implementing the system which began on November 20, 2022, and is concerned with receiving requests to purchase digital stamps by those subject to selectivity registered with the agency, through the electronic system designated for that, while allowing the trading of products that do not contain digital stamps in the markets.

The importance of complying with this stage is to ensure the readiness of importers before March 19, 2023 for the second stage, in which importers must ensure that all products arriving at the ports of the Kingdom of Bahrain for customs clearance bear digital stamps.

The last stage is the application stage within local markets, where it is prohibited at this stage to possess, trade, sell or supply any hookah tobacco products that do not contain digital stamps from June 18, 2023.

Read More.

Date: 03 Mar, 2023

External URL: http://wam.ae/en/details/1395303134409

Dubai March 03, 2023:

FTA has signed an MoU with global technology company SAP, which specialises in enterprise software solutions and cloud computing, to collaborate towards advancing the FTA’s standing in the international tax sector.

The agreement also underlines FTA’s role in driving sustainable financial diversification, leading digital transformation efforts, and efficiently implementing innovation and smart technology plans.

The MoU was signed by His Excellency Khalid Ali Al Bustani, Director General of the FTA, and Zakaria Haltout, Managing Director of SAP UAE.

Read More.

Date: 27 Feb, 2023

External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_1010.aspx

Riyadh February 17, 2023:

The Zakat, Tax and Customs Authority (ZATCA) carried out more than 10,000 inspection visits during the month of January, on markets and shops in various cities of the Kingdom. The Authority stated that the visits carried out by its supervisory and inspection teams, in cooperation with the National Program for Combating Commercial Concealment, included a number of commercial sectors, most notably retail, the food sector and professional services. The inspection visits aimed to enhance compliance with the provisions of the tax regulations in force in the Kingdom.

The Authority iterated that its inspection visits to markets and shops come in the context of its oversight efforts, which it implements through field inspection teams, aim at enhancing the degree of tax compliance among taxpayers from the business sector and limiting commercial transactions that violate the instructions and controls that fall within the jurisdiction of the Authority.

Read More

Date: 26 Feb, 2023

External URL: http://www.allaboutvat.com/wp-content/uploads/VATP033-Amendments-to-Emirates-Reporting-23-02-2023-1.pdf

Dubai February 26, 2023:

Following the Ministerial Decisions on which the Criteria and Conditions for Electronic Commerce for Record Keeping of the Supplies Made, the Federal Tax Authority (FTA) has issued a Public Clarification VATP033 guide of the approved amendments for the Emirate Reporting.

VAT Public Clarification P033 – Amendments to Emirates’ Reporting – Electronic Commerce Supplies by Qualifying Registrants covers reporting guidelines for taxable e-commerce registrants on the reporting of standard rates supply. In addition, taxable e-commerce registrants are required to track and keep records of supplies made from and to each emirate.

View the VAT Public Clarification P033 for more details.

Date: 25 Feb, 2023

External URL: https://mof.gov.ae/ministry-of-finance-issues-a-ministerial-decision-on-the-criteria-and-conditions-for-electronic-commerce-for-record-keeping-of-the-supplies-made/

Dubai February 25, 2023:

The Ministry of Finance (MoF) issued a Ministerial Decision on the Criteria and Conditions for Electronic Commerce for Record Keeping of the Supplies Made.

The decision came following the issuance of Cabinet Decision No. 99 of 2022 on the amendment of some provisions of Cabinet Decision No. (52) of 2017 on the Executive Regulation of Federal Decree-Law No. (8) of 2017 on VAT, which has amended Article 72 of the Executive Regulation and introduced for some taxable persons (whose value of e-commerce supplies of goods and services exceeds AED 100 million) the requirement to keep records of e-commerce transactions according to the emirate in which these supplies are received.

As per the decision, a supply of goods and services shall be considered to be an electronic commerce supply made via an electronic commerce medium where all the following criteria and conditions are met:

• The goods and services are listed or advertised on an electronic commerce medium;
• The goods and services are ordered through the electronic commerce medium, regardless of whether the payment is made online or not;
• In the case of a supply of goods, the goods are delivered to a location specified by the customer whereby this location is not owned by the supplier nor operated by that supplier.
• In the case of a supply of services, the services are provided, or the right to receive the services is granted to the customer with minimal or no human intervention.

The decision defines an electronic commerce medium as “A website, portal, gateway, interface, platform, marketplace, programme interface (API), or similar application which facilitates the sale of Goods or Services, including electronic means, electronic platform, a store in social media and electronic applications or similar applications.”

Read more.

Date: 22 Feb, 2023

External URL: https://www.vatcalc.com/qatar/qatar-bides-its-time-on-vat-implementation/

Doha February 22, 2023:

Qatar’s VAT regime can be expected during 2023. The country is said to be progressing with plans to introduce a 5 percent VAT regime in the Summer and it is anticipated that its authorities may soon announce a value-added tax (VAT) law and executive regulation in the months to come.

VAT would affect most sales of goods and services in Qatar, with limited exemptions (e.g. financial services, insurance) and consumption tax relief. VAT-registered businesses will be able to claim credit for VAT paid on their expenditure, relating to their taxable business activities.

Read more.

Date: 20 Feb, 2023

External URL: https://tax.gov.ae/en/media.centre/news/uae.pass.digital.signature.feature.introduced.to.emaratax.aspx

Dubai February 20, 2023:

The Federal Tax Authority (FTA) introduces single sign-on UAE PASS feature – the first national digital identity – to the EmaraTax platform which tax system registrants can use in all procedures and services on the platform, available through the official FTA website. This feature further advances the sweeping digital transformation taking place across the UAE.

The Authority stated that the new feature was launched in collaboration with relevant authorities and is designed to meet the highest standards of security, confidentiality and accuracy of information and procedures in an effort to speed up processes, improve user experience and meet customers’ aspirations.

Mr Abdulla Al Bastaki, Executive Director of the Information Technology Sector at the Federal Tax Authority, called on all FTA customers to take advantage of the new feature and activate their UAE PASS accounts and then use them to access the Authority’s services quickly and easily from the convenience of their devices.

Read more.

Date: 17 Feb, 2023

External URL: https://www.iloveqatar.net/news/general/qr-500000-fine-penalties-legal-action-companies-tax-evasion-doha

Doha February 17, 2023:

General Tax Authority’s (GTA) Revenue Protection Team have identified tax evasion cases in the region by a group of individuals and companies. The GTA’s investigations revealed that two companies operating in the contracting sector had committed acts that constitute tax evasion crimes. The GTA has taken the necessary measures by referring these companies to Public Prosecution for legal action and to recover the evaded amounts, a total of QR 24 million, in addition to the penalties and fines stipulated by applicable laws.

The competent court has issued convictions against both the companies and their authorized signatory partner. GTA referred that tax evasion is a serious impediment to tax systems worldwide, adding that such criminal practices harm the national economy and compromise equality and fair opportunities among taxpayers while eroding the competitive advantage of compliant companies. Moreover, the GTA reiterated its commitment to combat tax evasion and take legal action against anyone guilty of such crimes.

The GTA is taking proactive measures across all its departments to foster voluntary tax compliance and enhance community confidence in the tax system. These ongoing efforts aim to minimize tax evasion and create an environment of greater tax compliance. Finally, GTA urges all taxpayers to strictly comply with the provisions and procedures outlined in the tax laws to avoid any potential legal consequences.

Read more.

Date: 10 Feb, 2023

External URL: https://bit.ly/3Y629LJ

Riyadh February 10, 2023:

The ZATCA of KSA has issued Tax Circular on ‘VAT Treatment of Certain Supplies in the Financial Services Industry’.

The circular aims to provide guidance on the application of VAT rules in respect of two types of transactions involving banks and financial institutions in the KSA which are Supplies of services by International banks established in KSA to non-resident customers; and Incentives provided by credit card companies to banks in return for achieving operational targets.

View the Circular.

Date: 05 Feb, 2023

External URL: https://bit.ly/3Z3ffur

Muscat February 5, 2023:

Oman Tax Authority (OTA) has commenced the phase of mandatory local obligation with respective to its decision of Tax Stamp implementation in the Sultanate of Oman. Inspectors of the Tax Authority have conducted inspections in many local markets since the first of February to ensure that the Digital Tax Stamp (DTS) is being put on the products of excise goods.

The system of Tax Stamps aims to protect the consumer from counterfeit excise goods. The tax stamps are scanned at the entry points to the Sultanate of Oman to ensure that the products are original and intact, and to reduce the incidence of smuggling these products to the Sultanate. This move thereby reduces the possibility of evasion from Excise Tax while ensuring timely and effective tax collection and meeting compliance standards under the WHO (FCTC).

Read more.

Date: 31 Jan, 2023

External URL: https://www.gulftoday.ae/business/2023/01/29/fta-launches-first-event-under--tax-support-initiative-for-2023

Dubai January 31, 2023:

The Federal Tax Authority (FTA) has launched the ‘Tax Support’ initiative to raise tax awareness among business sectors in the UAE. The initiative aims to achieve awareness through direct and sustained contract, as a means to enhance compliance with tax laws and regulations.

The first workshop under the initiative was held on January 24th and 25th as a collaboration between the FTA and On Time Business Solutions Centre, which is located in Oud Metha, Dubai.

The Authority stated that the activities of the ‘Tax Support’ initiative will continue throughout the year and cover all seven emirates, in collaboration with relevant centres and entities in the government and private sectors, where experts from the FTA will go on several tours in accordance with a comprehensive timeline.

The initiative targets taxpayers and aims to facilitate the process of paying taxes for them, in an effort to raise the rate of tax compliance and awareness around the UAE, in addition to responding to taxpayer enquiries and observations, directing them to the available tax guidelines, and correct procedures.

Read More.

Date: 30 Jan, 2023

External URL: https://gulfnews.com/business/markets/uae-corporate-tax-big-businesses-public-companies-get-first-shot-at-registering-via-emaratax-1.1675049875184

Dubai January 30, 2023:

Big businesses and public companies get their first shot at registering for Corporate Tax (CT) via EmaraTax. A staggered approach for CT registering gives mid- and small businesses more time to be ready and get their processes in order. At the same time, it gives the tax authorities to fine-tune all of the related processes before the implementation date for the Corporate Tax from June 2023.

Currently, the ‘big corporates and public joint stock companies (PJSC) have been invited to do their CT registrations through the EmaraTax platform. The early registration period will continue until May. Registration is open for certain categories – i.e. a ‘Legal Person’, which includes PJSCs and UAE private companies.

Read more.

Are you ready for UAE corporate tax 2023? Chat with our tax experts now.

Date: 26 Jan, 2023

External URL: http://www.allaboutvat.com/wp-content/uploads/E-Invoicing_Detailed__Guideline.pdf

Riyadh January 26, 2023:

The Saudi Arabian Tax and Customs Authority ZATCA, has recently changed its approach to voluntary participation in Phase 2 of E-invoicing in the Kingdom.

Previously it has not been allowed to voluntarily start the implementation of Phase 2, however, with the update of the guideline published in December 2022, taxpayers now have the option to start following Phase 2 requirements on a voluntary basis before their integration enforcement date.

View the guideline.

Date: 25 Jan, 2023

External URL: http://www.allaboutvat.com/wp-content/uploads/2023-01-25-Login-to-EmaraTax-using-UAE-PASS.pdf

Dubai January 25, 2023:

The UAE Federal Tax Authority (FTA) released a User Manual on Login to EmaraTax using UAE PASS. This manual helps taxpayers navigate through the application and depicts the steps in an easy-to-understand manner.

Here is the manual for anyone interested in knowing more about the login procedures.

Date: 22 Jan, 2023

External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.opens.pre.registration.aspx

Dubai January 22, 2023:

The Federal Tax Authority (FTA) has launched early registration for corporate tax through the EmaraTax platform for digital tax services, in line with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, which stipulates that Taxable Persons will become subject to Corporate Tax from the beginning of their first financial year that starts on or after 1 June 2023.

The Authority explained that the early registration period is available from January 2023 to May 2023 for certain categories of companies operating in the UAE. These selected companies will be receiving invitations from the FTA by email and SMS, allowing them to register via the EmaraTax platform.

Following this phase, the FTA will announce at a later date when registration will be open for other companies and businesses. The FTA will make sure to give ample time for companies and businesses to apply for registration and meet their legal obligations. When registration opens, priority will be given to companies and businesses that have a financial year starting on 1 June 2023.

The Authority welcomes any feedback and suggestions during this phase to ensure continuous improvements of registration procedures and processes.

Read more.

Date: 18 Jan, 2023

External URL: https://www.khaleejtimes.com/uae/legal/new-uae-rule-attestation-mandatory-for-import-invoices-worth-dh10000-above-violators-to-face-fine

Dubai January 18, 2023:

Companies in the UAE will soon be required to attest import invoices with a value of Dh 10,000 and above, according to the UAE Ministry of Foreign Affairs and International Cooperation. The attestation cost of Dh 150 per commercial invoice will be applicable, and customers will have a grace period of 14 days after the declaration of goods to comply with the attestation. Failure to do so will result in a penalty of Dh 500 per invoice levied by the UAE Ministry of Foreign Affairs and International Cooperation (Mofaic) on the non-complying businesses.

According to a tweet issued by Mofaic — as per Cabinet Resolution No. 38 of 2022 regarding fees for certification of invoices and certificates of origin for imports into the UAE — this new rule will come into effect on February 1, 2023. This new regulation will apply to all goods imported into the UAE with a value of Dh 10,000 and above and the attestation of Invoices will be done electronically.

Contact our tax experts for more details.

Read more.

Date: 16 Jan, 2023

External URL: https://saudigazette.com.sa/article/628664

Riyadh January 16, 2023:

Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) has confirmed that liquor will not be sold at the newly established duty-free markets in the Kingdom’s entry ports.

According to the rules for establishing duty-free markets, only goods and products that are permitted to be traded in the Kingdom will be allowed at the duty-free markets, ZATCA said.

The authority has set the customs rules, requirements and procedures for establishing duty-free markets at air, sea and land ports, in accordance with the unified customs law for the GCC countries, which includes the conditions related to the operation of duty-free markets. The authority stressed that the decision will contribute to supporting supply chains and improving logistical services provided to duty-free markets by providing a wide range of goods and products for travel shopping.

Read more.

Date: 15 Jan, 2023

External URL: http://www.allaboutvat.com/wp-content/uploads/2023-01-09-Fin-serv.pdf

Riyadh January 15, 2023:

The Zakat, Tax and Customs Authority (ZATCA) has issued a new circular to clarify the VAT laws and provisions concerned with certain supplies of services in the financial and their application in specific circumstances.

The circular provides information and guidance on the application of VAT rules in respect of two types of transactions that involve banks and financial institutions in KSA:

• Supplies of services by international banks established in KSA to non-resident customers.
• Incentives provided by credit card companies to banks in return for achieving operational targets.

The circular is based on the unified VAT agreement of the states of the Gulf Cooperation Council ( Unified VAT Agreement), Value Added Tax Law (VAT Law) and Value Added Tax implementing regulations as well as the general practice with respect to applicable rules.

View the circular.

Date: 12 Jan, 2023

External URL: https://www.khaleejtimes.com/uae/dubai-new-customs-duty-now-applicable-on-international-shopping-exceeding-dh300

Dubai January 12, 2023:

Dubai has introduced new customs duty on goods bought internationally with a value of more than AED 300. This means that residents shopping internationally with a value of over AED 300 will have to pay a 5 percent import customs duty and 5 percent value-added tax (VAT).

“Customs duty rate has been set at five percent of the goods if their value exceeds AED 300, except where a rate of zero percent exemption applies according to the Unified Customs Tariff for the GCC States of 2022,” said Abdelhak Attalah, partner, maritime and international trade practice, Galadari Advocates and Legal Consultants.

Attalah further added that tobacco, tobacco products, e-cigarettes and vaping liquids are subject to a higher customs duty at the rate of 200 percent in addition to the sin tax which is applied also to sugary drinks.

Read more.

Date: 11 Jan, 2023

External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_996.aspx

Riyadh January 11, 2023:

Zakat, Tax and Customs Conference to be held in Riyadh on 8th – 9th February 2023 will feature more than 30 specialized workshops in the tax sectors. Those interested to attend can register for the conference by logging onto ztc.sa. A group of specialized experts will present on various topics in both Arabic and English.

The conference, organized by the Authority, comes under the slogan ‘An Integrated Digital System to Sustain the Economy and Enhance Security’ and is sponsored by the Minister of Finance, Chairman of the Board of Directors of the Zakat, Tax and Customs Authority, His Excellency Mr. Muhammad bin Abdullah Al-Jadaan. It aims to discuss the most important global and local experiences and developments in the zakat, tax and customs sectors, and the digital transformation witnessed by the system.

Through organizing workshops accompanying the conference, the authority aims to enhance the tax culture and raise the level of compliance and public awareness of taxpayers, importers and exporters and all relevant parties.

Read more.

Date: 10 Jan, 2023

External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/news_995.aspx

Riyadh January 10, 2023:

The Zakat, Tax and Customs Authority (ZATCA) has called on taxpayers from the business sector subject to selective goods tax to submit their tax returns for the past November and December, on January 15, 2023, at the latest.

The authority urged its taxpayers to quickly submit their declarations through the website ( zatca.gov.sa ​) , in order to avoid a fine for failure to submit a declaration within the specified period at 5% of the value of the tax that should have been declared for every 30 days of delay in submitting the declaration.

The selective goods tax is one of the tax systems in force in the Kingdom, which is imposed on goods that have negative effects on public health or the environment in varying proportions, and includes soft drinks, energy drinks, sweetened drinks, tobacco and its derivatives.

Read more.

Date: 04 Jan, 2023

External URL: https://www.arabtimesonline.com/news/government-collects-kd-900m-in-taxes-during-past-five-years/

Kuwait City January 4, 2023:

The Kuwaiti government collected about 900 million dinars in taxes from companies during the past five years, from April 2017 until the end of March 2022.

The total taxes were 787.6 million dinars, which came in the form of income tax from foreign companies and from Kuwaiti companies to support employment, zakat proceeds from Kuwaiti companies, and companies’ contributions to state services, in addition to about 110 million dinars from profits distribution and revenues for issuing tax certificates or others.

The data disclosed fiscal 2018/2019 witnessed the highest rate of collection of taxes on income, profits, and capital gains from companies and other projects, during which they collected 181.3 million dinars, in addition to a non-recurring rate of ‘dividend profits’ of about 109.94 million dinars, which is equivalent to the value of income tax from foreign companies for the same year bringing the total collection to 291.2 million dinars.

Read more.

READ ALSO : No New New Taxes Eyed in Kuwait

Date: 03 Jan, 2023

External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_990.aspx

Riyadh January 3, 2023:

The Zakat, Tax, and Customs Authority (ZATCA) has begun applying the second phase of E-invoicing ‘Integration Phase’ since January 1, 2023, to the enterprises that were chosen within the first group which met the conditions necessary to complete this phase.

The Authority stated that the enterprises that began to connect their E-invoicing systems with the Fatoora platform were chosen based on the level of revenues subject to VAT for the year 2021 whose revenues exceed 3 billion Riyals.

ZATCA stressed that this phase aims to link and integrate the E-invoicing systems of taxpayers subject to the E-invoicing regulations with the Fatoora platform, as the Authority worked to notify the targeted enterprises to complete the procedures for applying the second phase of e-invoicing six months before the application.

In addition, the Authority claimed that the second phase has additional requirements, most notably connecting taxpayers’ electronic invoicing systems with the Authority’s system, issuing electronic invoices using a specific format, and including a number of additional elements in the invoice. The Authority is striving to impose this phase gradually and in groups, and it will directly inform the succeeding groups at least six months prior to the integration date.

Read more.

Date: 02 Jan, 2023

External URL: https://www.khaleejtimes.com/uae/dubai-30-tax-on-alcohol-removed-personal-liquor-licence-to-be-free-of-cost

Dubai January 2, 2023:

From January 1, 2023 Dubai has suspended a tax of 30 percent on alcoholic beverages as well as dropped the personal liquor licence fee that was previously mandated to buy alcohol in the commercial and tourism hub.

However, a valid Emirates ID, or Passport for tourists, will still be required to apply for the license. Added to that a person must be at least 21 to drink legally in the UAE, and alcohol can only be consumed privately or in licensed public places.

The move of slashing the tax is expected to further boost the appeal of Dubai to tourists and expats towards its more liberal lifestyle, compared to other Gulf states.

Read more.

Date: 01 Jan, 2023

External URL: https://tax.gov.ae/DownloadOpenTextFile?fileUrl=en/VAT_VAT_Guides/Tax_Group_Registration/Register_Tax_Group_EN.pdf

Dubai January 1, 2023:

The United Arab Emirates (UAE) Federal Tax Authority (FTA) publishes a User Manual on ‘EMARATAX Tax Group Registration – Version 1.0.0.0’.

This manual is prepared to help VAT Tax Group representative members navigate through the FTA’s Emaratax website and create an account with the FTA. It also provides steps to submit a VAT Tax Group Registration Application. In addition, it offers you an understanding of the Login process, user types, forgot password and modify online user profile functionalities.

Note: The representative member must login into their EMARATAX account to initiate the VAT TAX Group Registration Application. Other Tax Group Members who are not a representative member will not be able to submit this application.

Click here to access the user manual.

Date: 28 Dec, 2022

External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_987.aspx

Riyadh December 28, 2022:

Zakat, Tax and Customs Authority (ZATCA) determined the criteria for selecting the targeted taxpayers in the second wave for implementing the “Integration Phase” of E-invoicing. The authority clarified that the second wave includes all taxpayers whose revenues subject to VAT exceeded (half a billion Saudi riyals) in 2021. VAT-registered taxpayers meeting the criteria should integrate their E-invoicing solutions with the FATOORA Platform starting from July 1, 2023.

ZATCA has stated that Phase Two requires additional requirements, the most prominent is to integrate taxpayer’s E-invoicing solutions with (FATOORA) Platform, issue electronic invoices based on a specific format, and include additional fields in the invoice. Furthermore, the second phase of E-invoicing would be implemented in waves, and ZATCA would inform the next waves at least six months prior the integration date.

It is noteworthy that the implementation of the Integration Phase of the first wave will be on January 1, 2023, for the taxpayers whose selection criteria were announced last June, after such taxpayers completed the necessary requirements to complete this phase.

Read more.

Date: 23 Dec, 2022

External URL: bit.ly/3vBba3i

Dubai December 23, 2022:

The Federal Tax Authority (FTA) has called on registered taxpayers to benefit from the facility to re-determine administrative penalties on tax violations to be 30% of the total outstanding amount that were not paid before June 28, 2021

The FTA stressed that the facility has set a deadline i.e on or before December 31, 2022 and that taxpayers eligible to benefit from the decision must complete all related procedures through the EmaraTax portal to be able to benefit from the facility.

The Authority explained that after December 31, 2022, tax registrants who have outstanding penalties from before June 28, 2021 will not be eligible to avail of the re-determination facility and will be required to pay their fines in total, instead of just 30% of them, if the required conditions are met within the deadline set by the Cabinet Decision on Re-Determining Administrative Penalties on Tax Violations in the UAE.

Read more.

Date: 19 Dec, 2022

External URL: https://trendsmena.com/economy/zatca-extends-period-of-exemption-of-penalties-for-saudi-taxpayers/

Riyadh December 19, 2022:

The Zakat, Tax and Customs Authority (ZATCA) as part of its efforts to mitigate the effect of the coronavirus (COVID-19) pandemic again extended the amnesty initiative that waives penalties on all taxes for another 6 months, until the end of May 2023 (previously set to close 30 November 2022).

The authority pointed out that extending the initiative would enable taxpayers to benefit from the initiative and its goals, and alleviate economic burdens arising from the COVID-19 pandemic on businesses.

Highlights of the decision include:

Duration

• The extended tax amnesty covers the period from 1 December 2022 to 31 May 2023.

Coverage

The amnesty initiative applies to fines and penalties relating to the following taxes:

• Value-added tax
• Withholding tax
• Excise tax
• Corporate income tax
• Real estate transaction tax

For any additional information with respect to this alert, please get in touch with our tax experts.

Read more.

Date: 15 Dec, 2022

External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.launches.strategy.to.explore.future.of.tax.sector.strive.for.global.leadership.aspx

Dubai December 15, 2022:

The Federal Tax Authority (FTA) has launched its strategy to explore the future of the tax sector and strive for global leadership. The strategy is built on a thorough assessment and follows comprehensive plans developed to map out the future of the UAE tax system, in line with international best practices.

The Authority explained that launching the strategy formed part of its activities to mark World Future Day 2022 which began last week.

FTA Director General His Excellency Khalid Ali Al Bustani said: “The Federal Tax Authority’s strategy for exploring the future of the tax sector primarily aims to identify the basic motives, scenarios, and proactive measures required for sustainably upgrading tax procedures in the UAE, and promoting a culture of future-mapping within, paving the way for it to become a world leader in the field.”

“Over the past few days, the Authority organised a series of events to mark World Future Day, including an awareness seminar on the methods and tools of forecasting the future, which highlighted the importance of the FTA’s participation in celebrating World Future Day, and showcased various effective future-planning mechanisms, with detailed steps and frameworks,” H.E. added.

Read more.

Date: 09 Dec, 2022

External URL: https://www.khaleejtimes.com/business/finance/uae-issues-federal-decree-law-on-9-corporate-tax-set-to-begin-next-year

Dubai December 9, 2022:

The UAE has issued Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses (The Corporate Tax Law). This means businesses will be subject to UAE Corporate Tax from the beginning of their first financial year which starts on or after June 1, 2023.

The UAE’s Corporate Tax regime will levy a standard rate of 9% for taxable profits exceeding AED 375,000. Profits up to and including that threshold will be taxed at a 0% rate to support small businesses and start-ups.

The Ministry of Finance (MoF) confirmed the Federal Decree-Law on Taxation of Corporations and Businesses is an important milestone in building an integrated tax regime that supports the strategic objectives of the UAE and enhances its global economic competitiveness, as well as provides the national economy with sufficient flexibility to deal with and support international financial systems within the framework of the UAE’s established partnerships.View the MoF’s newly released Frequently Asked Questions that supplement your queries.

• Click here to view the Federal Decree-Law No. 47 of 2022 in English.
• Click here to view the Federal Decree-Law No. 47 of 2022 in Arabic.

Date: 08 Dec, 2022

External URL: https://www.khaleejtimes.com/uae/uae-announces-vat-changes-in-gold-diamond-sector

Dubai December 8, 2022:

The Ministry of Finance (MoF) announced changes to the VAT rules for gold and diamond suppliers. The amendment comes as part of a resolution issued by the cabinet on workmanship services when supplying gold and diamonds between registrants.

According to the resolution, there will be a temporary replacement for the definition of “goods” contained in Article (1) of Cabinet Decision No. (25) of 2018 on the Mechanism of Applying VAT on Gold and Diamonds between Registrants in the State to be gold, diamonds and any products whose main component is gold or diamonds, which may include workmanship services directly related to the supply of these commodities”.

This amendment will be applied for the period from June 1, 2018, to December 31, 2022, noting that the term provided in the aforementioned Cabinet Decision No. (25) of 2018 (goods) will be re-applied starting from January 1, 2023.

Read more.

Date: 06 Dec, 2022

External URL: https://tax.gov.ae/en/emaratax/calendar.of.events.emaratax.aspx

Dubai December 6, 2022:

To orient tax payers towards the new payment portal EmaraTax, FTA has released a recorded webinar in English. An Arabic recording of the webinar will be made available soon.

In order to gain an in-depth overview on FTA’s EmaraTax click here to view the webinar (on YouTube).

During this month, FTA will also be running a series of online orientation sessions for EmaraTax users. There will be two sessions per day:

• 10 – 11 am providing you an opportunity to raise specific questions about using EmaraTax;
• 3 – 4 pm focusing on specific aspects of EmaraTax, in particular password reset, returns submission and payments.

Please join any session that is of interest to you and you can access the webinars via WebEx. We recommend that you download WebEx in advance to avoid any possible delays when joining your chosen session. The live webinars are currently conducted in English as per the schedule.

Click here to view the calendar of events and schedule.

Date: 05 Dec, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/EmaraTax-Reset-password-to-login.pdf

Dubai Dec 5, 2022:

This is to update you that FTA has released detailed guidelines on resetting of password to login to EmaraTax portal. The document contains a step-by-step guide to resetting your password and briefs you the corresponding steps and scenarios bound to occur.

Kindly click here to view the document for your reference. We hope you will find it useful.

Please feel free to reach out to us on WhatsApp in case of any clarifications.

Date: 24 Nov, 2022

Dubai November 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.

Click here to get more details about the new platform that includes guidance videos, FAQs and links to online orientation sessions.

Date: 22 Nov, 2022

External URL: https://www.nbr.gov.bh/publications/view/VAT_Registration_guide

Dubai November 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.

Date: 18 Nov, 2022

External URL: https://www.gulftoday.ae/business/2022/11/17/ministry--announces--new-vat--exemption

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.

Read more.

Date: 16 Nov, 2022

External URL: https://www.arabnews.com/node/1980221/business-economy

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.

Read more.

Date: 15 Nov, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/Excise-Tax-Registration-Emailer-1-1.pdf

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.

Date: 14 Nov, 2022

External URL: https://tax.gov.ae/en/media.centre/news/the.uae.federal.tax.authority.is.launching.emaratax.on.5.december.2022.aspx

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.

Read more.

Date: 12 Nov, 2022

External URL: https://www.nbr.gov.bh/excise_faqs/4

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.

Date: 11 Nov, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/VATGRM1-Refund-of-VAT-Incurred-on-the-Construction-and-Operation-of-Mosques-EN-08-11-2022.pdf

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.

Date: 10 Nov, 2022

External URL: https://tax.gov.ae/en/media.centre/news/the.uae.federal.tax.authority.is.launching.emaratax.on.5.december.2022.aspx

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.”

Read more.

Date: 09 Nov, 2022

External URL: https://www.allaboutvat.com/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.

Date: 08 Nov, 2022

External URL: https://www.thenationalnews.com/gulf-news/2022/11/08/mixed-reaction-as-oman-passes-draft-law-on-income-tax-for-high-earners/

Muscat November 8, 2022:

After two years of contemplation, the Gulf state of Oman is on the cusp of introducing income tax in the region. A draft law to levy income tax on high earners was passed on November 6, 2022 by the country’s Shura Council. Subject to approval from the Council of Ministers and a final endorsement from Sultan Haitham, the tax will then become law.

“Income tax is on track. We expect personal income tax to go live by late 2023 or in 2024 provided that it receives all approvals including the royal decree.” a source revealed on the condition of anonymity.

Oman is more likely to bring personal income tax in the range of 5-9%, which is not yet confirmed. The buzz on income tax draft law has evoked mixed reactions from citizens in different salary brackets. Most feel a percentage cut of 3-5% will be okay and anything above that can hit their income. Middle-income earners were also concerned that if the new law is approved what would it mean for them in the long run. However experts opine that such a levy would be a good idea overall for the country’s finances.

Read more.

Date: 04 Nov, 2022

External URL: https://mjla.gov.om/eng/legislation/decisions/details.aspx?Id=1869&type=D

Muscat November 4, 2022:

In October 2022, the Oman Tax Authority (OTA) issued Ministerial Decision No. 456/2022 (MD 456/ 2022) amending certain provisions of the Executive Regulations of the Excise Tax Law issued under MD 53/ 2021. The amendments have gone into effect from 17 October 2022.

The amendments are currently available only in Arabic and can be downloaded from here.

Date: 03 Nov, 2022

External URL: https://uqn.gov.sa/?p=18306

Riyadh November 3, 2022:

ZATCA recently issued a guideline on the ‘Controls of fees for storing goods at land customs ports’. The guideline is in accordance with the unified customs regulations of the GCC.

Click here to read the full guideline.

Date: 02 Nov, 2022

External URL: https://www.nbr.gov.bh/publications/view/excise_goods_list

Manama November 2, 2022:

The National Bureau for Revenue (NBR) has recently announced the updation of their excise goods list available on the NBR portal.

Click here to view the new excise goods list.

Date: 31 Oct, 2022

External URL: https://www.thenationalnews.com/business/economy/2022/10/29/uae-finance-ministry-amends-some-provisions-of-vat-law/

Dubai October 31, 2022:

The UAE Ministry of Finance has amended certain provisions to the value added tax (VAT) laws (Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT)), which will go into effect from January 1, 2023. The amendments made are in line with international best practices, based on experiences, challenges faced by various business sectors as well as recommendations received from relevant parties.

Some of the major changes to the existing VAT rule introduced by Federal Decree-Law No 18 of 2022 are as follows:

• Registered persons who make taxable supplies are allowed to apply for an exception from VAT registration if all of their supplies are zero-rated or if they no longer make any supplies other than zero-rated supplies.
• Setting a 14-day period to issue a tax credit note to settle output tax, in line with the time frame set for issuing tax invoices.
• The FTA may forcibly deregister registered persons in specific cases if deemed necessary.

Read more…

Want to further know the Key Amendments to the UAE VAT Law in detail, then click here to read the full article.

Date: 30 Oct, 2022

External URL: https://www.khaleejtimes.com/government/uae-new-payment-method-announced-for-tax-liabilities

Dubai October 30, 2022:

The Federal Tax Authority (FTA) announced that it will be discontinuing the use of the eDirham system in paying taxes from October 30, 2022 and replacing it with Magnati, the smart payment option from First Abu Dhabi Bank (FAB).

Magnati provides advanced software solutions for online payments, using next-generation advanced technologies to provide a seamless and efficient payment service for FTA customers. The FTA explained that the new smart payments feature will allow registrants to pay their tax obligations via FAB’s platform, in addition to enabling taxpayers to settle any payment due using credit cards.

Read more…

Date: 25 Oct, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/Tax-Stamp_brief_final-1.pdf

Muscat October 25, 2022:

Starting from September 19, 2022, importers and local manufacturers will be able to request the digital tax stamps which will be sent to manufactures to put on molasses and other tobacco products.

Click here to view the document elaborating on the essentials of the Tax Stamp Scheme in Oman (Note: File in Arabic).

Date: 24 Oct, 2022

External URL: https://tax.gov.ae/en/media.centre/news/five.years.passed.since.the.implementation.of.excise.tax.in.the.uae.aspx

UAE October 24, 2022:

The Federal Tax Authority (FTA) asserted that the implementation of Excise Tax has been a great success in all aspects. Whether in relation to the implementation mechanisms developed as per international best practices, or in relation to encouraging cooperation from sectors of taxable businesses, the indicators have revealed positive results. Thus demonstrating that the roll-out of Excise Tax in the region has achieved its intended objectives.

The review was part of a press statement the Authority issued to mark the five-year anniversary of the implementation of Excise Tax, which went into effect in the UAE since October 1, 2017. Primarily applied to carbonated beverages at a rate of 50%, tobacco products and energy drinks at 100%, the scope of Excise Goods was later expanded to include sweetened drinks as of December 1, 2019, that were subject to a rate of 50%, and electronic smoking devices, tools along with the liquids used within were subject to a rate of 100%.

Key Indicators

• The FTA revealed that the total number of Excise Tax registrants grew continuously from 309 by the end of 2017 to 430 by the end of 2018, at a growth rate of 39.16%.
• The total increased by 60.47% to 690 registrants by the end of 2019, and subsequently by 45.36% to hit 1,003 registrants by the end of 2020, and by another 22.33% to reach 1,227 registrants by the end of 2021.
• An additional growth rate of 19.72% was recorded in the first nine months of the current year, where the total number of registrants reached 1,469 by the end of September 2022.
• Overall, this marks a cumulative growth of 375.41% between the end of 2017 and the end of September 2022.

Read more.

Date: 22 Oct, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/2022-10-13-Fatoora-Portal-User-Guide.pdf

Riyadh October 22, 2022:

ZATCA has issued a user guideline for the Fatoora platform to implement the second phase of the electronic invoice – the integration phase. ​​​​

This user manual contains the steps of using the portal to onboard and integrate the e-invoicing solutions and has been prepared for educational and awareness purposes.

View the Fatoora Portal User Manual- Ver 2.

Date: 18 Oct, 2022

External URL: https://saudigazette.com.sa/article/625350/SAUDI-ARABIA/Passengers-are-required-to-disclose-if-they-are-carrying-SR60000

Riyadh October 18, 2022:

The Zakat, Tax and Customs Authority (ZATCA) stated that every traveller arriving or departing from the Kingdom of Saudi Arabia must disclose if they are carrying in their luggage a sum of or items amounting to 60,000 Saudi Arabian Riyals (SAR) or more.

Travelers must disclose the items and fill out the declaration form and submit it electronically via the application or through ZATCA’s website.

The items that may have a value of more than 60,000 SAR include:

• Coins
• Monetary instruments
• Gold bars
• Precious metals
• Precious stones
• Fine jewellery
• Equivalent in foreign currencies

ZATCA said that the declaration is a mandatory requirement to protect the traveler from being charged with the crime of money laundering, smuggling, or evading the payment of legal fees and taxes.

For more information, click the link: https://e-services.zatca.gov.sa/en/declare

Read more.

Date: 12 Oct, 2022

External URL: https://www.nbr.gov.bh/releases/144

Manama October 12, 2022:

The National Revenue Authority (NBR) confirmed that October 16, 2022 marks the last phase of application of the distinctive mark system (digital stamps) on cigarette products. The decision was implemented based on decision No. 3 of 2022 of the CEO of the National Revenue Authority, where all cigarette products available for sale must be mandatorily marked with digital tags for trading, sourcing, or holding in local markets.

The agency called on all importers and traders in the local markets to deal in appropriate quantities and avoid storing large quantities of cigarettes that do not bear digital stamps. This was in order to clear the stock before the last stage and prepare for the ban of sale, circulation, possession or supply of cigarettes without stamps.

It is worth noting that the digital stamp system aims to track the movement of selective excise related goods from the manufacturing stage to the point of sale for consumption. The system helps combat the smuggling of goods and illegal trade and also helps protect consumers from poor quality and counterfeit products alike, while ensuring effective collection of tax proceeds by the government.

Read more.

Date: 11 Oct, 2022

External URL: https://tax.gov.ae/en/media.centre/news/the.uae.federal.tax.authority.to.launch.a.new.integrated.platform.emaratax.aspx

Dubai October 11, 2022:

FTA announced that a new platform will be launched in November this year following an extensive period of assessment, consultation and development. EmaraTax represents a major milestone in the FTA’s ambition to be a leading digitalised tax administration system in full recognition of the UAE’s national digital agenda.

EmaraTax will significantly enhance the way taxpayers access the services of FTA, pay their taxes and obtain refunds. The new platform also greatly enhances the ability to administer taxes in the UAE, enables better, faster decision-making and earlier engagement with taxpayers in need of support.

Offering online access to a larger number of services, a simplified and streamlined user experience and extensive self-help options, EmaraTax offers a range of significant enhancements. Individual taxpayers, tax agents, legal representatives, foreign missions and diplomats, customs bodies and verification agencies will all benefit from the range of developments.

The new platform is a modern tax administration ecosystem that integrates with other influential government entities such as the UAE Central Bank and national technology-based programs including UAE PASS to make best use of common data and simplify the range of user processes from logging-in to compiling tax returns. Importantly EmaraTax is mobile-ready and the App will be launched shortly after the new platform goes live in November 2022.

View more.

Date: 07 Oct, 2022

External URL: https://tax.gov.ae/DataFolder/Files/Pdf/2022/Charities%20List%20-%2026%2009%202022.pdf

Dubai October 7, 2022:

The UAE tax authorities have issued Cabinet Decision No.55 of 2017 on Charities That May Recover Input Tax.

The decision, which has retrospective effect from 1 January 2018, confirms that certain charities (as specified in the list) will be able to recover all the input tax paid by them. This comes with exception of tax excluded from recovery by virtue of UAE’s executive regulations on VAT and tax paid for goods and services used for making exempt supplies.

The file contains the list of charities in both English and Arabic.

Date: 06 Oct, 2022

External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.showcases.its.latest.digital.initiatives.at.gitex.global.2022.aspx

Dubai October 6, 2022:

The Federal Tax Authority (FTA) showcased its latest digital initiatives at GITEX Global Exhibition at the Dubai World Trade Centre. More than 5,000 companies from over 90 countries participated in the event.

The Authority revealed that its participation at GITEX highlights its latest digital initiatives, launched as part of the continuous development plans to match the best standards. The initiatives are in line with UAE’s Digital Government Strategy, designed to drive the smart transformation of all services, and introduce seamless and proactive digital services. The objective is to provide innovative models that embody the leadership and excellence of the government systems, and strengthen efforts to meet taxpayers’ aspirations and process their transactions quickly.

FTA Director General His Excellency Khalid Ali Al Bustani said “Through its participation at GITEX, the world’s largest tech event, the FTA aims to achieve two main objectives. The first is to introduce the FTA’s experts to the latest technologies and smart digital systems in the field of tax administration, which can be built upon to ensure the modernisation of the FTA’s services. This in turn, supports our efforts to fulfil the directives of our wise leadership and make the UAE one of the best countries in the world.”

Read more.

Date: 04 Oct, 2022

External URL: https://bit.ly/3yd10rx

Muscat October 4, 2022:

Oman Tax Authority has made an announcement urging taxpayers to update their communication data of their institutions when they access to the Tax Authority’s electronic portal.

In a statement the Tax Authority said “Taxpayers should update the communication data of their institutions when they access to the Tax Authority’s portal www.taxoman.gov.om. We appreciate your cooperation to update this data that will allow you to access the electronic services provided by the Tax Authority in the future.”

In regards to this, the Authority has also issued a step by step guide outlining the process for updating contact details.

Click here to view the guide.

Date: 02 Oct, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/Tax-Stamp_brief_final.pdf

Muscat October 2, 2022:

Starting from September 19,2022, importers and local manufacturers in Oman can request the digital tax stamps which will be sent to manufactures to put on molasses and other tobacco products.

Ahead of the rollout of the second phase of its Digital Tax Stamp initiative on October 14, 2022, Oman Tax Authority has urged importers of tobacco products and spirits to obtain excise tax stamps to be supplied to their overseas principals for affixing on their goods before they are shipped into the country.

The scheme, which came into effect on June 30, 2022, aims to strengthen regulation of trade and sale of excisable products and optimize the collection of tax levied on such goods. The digital tags will also help clamp down any illegal imports of excise goods in the country.

View more details in the file.

Date: 26 Sep, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/2022-09-26-VAT-guidelines-electronic-services.pdf

Riyadh September 26, 2022:

ZATCA releases VAT Guidelines for Electronic Contracts. The guideline is addressed to all natural and legal persons who carry on economic activity and who are subject to VAT. The purpose of this guideline is to provide more clarifications regarding VAT consequences on electronic contracts entered into between a supplier and a customer. View the Guide in Arabic.

For further advice on specific transaction, you can approach the Authority on its website which contains a host of tools and visual guidance materials.

Date: 25 Sep, 2022

External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.and.planet.tax.free.announce.worlds.most.innovative.aspx

Dubai September 25, 2022:

The UAE’s Tax Authority (FTA), in partnership with Planet Tax Free, launched the world’s most innovative and 100% digital VAT-refund scheme for tourists. The paperless procedure is considered the most advanced solution of its kind in the world and is a reflection of the government’s continuous adoption of proactive solutions based on the concept of proactive government work, to meets the requirements of the future and positively reflect on customers.

The announcement was made at a joint press conference in the presence of H.E. Khalid Ali Al Bustani, Director General of the UAE Federal Tax Authority and Eyad Al-Kourdi, General Manager of Planet Tax Free, the operator of the tax refund system for tourists in the UAE.

The integrated system was demonstrated at the press conference, showcasing the strength of using electronic invoices issued at the point of sale registered within the authority’s system, instead of traditional paper invoices. The new solution is integrated electronically between retail outlets and the tax refund scheme, ensuring a seamless digital process of issuing, sending, modifying and saving invoices for tourists.

Read more.

Date: 20 Sep, 2022

External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_945.aspx

Riyadh September 20, 2022:

The Zakat, Tax and Customs Authority (ZATCA) has concluded making all the necessary preparations to expand the application of the customs clearance initiative within the two hours specified by the noble royal order and has worked on this in collaboration with 26 government agencies that serve as customs clearance agencies.

The Authority is expanding the implementation of the initiative in order to further the clearance system’s efforts to facilitate cross-border trade in line with the goals of the Kingdom’s Vision 2030 to become a global platform for logistics service.

According to the Authority, importers’ can utilize the feature of pre-submitting the documents needed for importation 72 hours before the consignment arrives at the port, in addition to meeting all clearance requirements from the relevant authorities, and contribute to the accomplishments made during the final stage of the clearance system.

In this regard, the Authority, through its integrated work with the National Competitiveness Center and in continuous cooperation with the clearing authorities, has achieved a tangible development at the level of customs clearance procedures within the framework of its strategy that meets the requirements of the Kingdom’s vision 2030 to be a pioneer in customs work at the regional and global level, fostering national competitiveness and enhancing national competitiveness.

Read more.

Date: 16 Sep, 2022

External URL: https://tax.gov.ae/en/media.centre/news/youth.panels.aspx

Dubai September 16, 2022:

The Federal Tax Authority (FTA) Youth Council, in cooperation with the Federal Youth Authority (FYA), held three youth circles on Tax Culture to Support Small and Medium Enterprises(SMEs) as part of the Council’s initiatives to raise tax awareness and facilitate tax compliance through direct engagement with youth business.

More than 100 representatives of SMEs participated in the discussions in Abu Dhabi, Dubai and Ajman. The sessions were attended by FTA Director General, His Excellency Khalid Ali Al Bustani, FYA Director General, Saeed Al Nazari, Abu Dhabi Department of Economic Development (ADDED) Undersecretary, Rashid Al Baloosh and the Mohammed bin Rashid Establishment for Small and Medium Enterprise Development Executive Vice President, Saeed Al Marri, alongside a number of federal and local authority officials.

The youth circles dealt with a set of aspects that include the services provided by the authority, its future directions to enhance youth tax culture in the SME sector and the prominent challenges young people face at SMEs and ways to overcome them.

Read more.

Date: 15 Sep, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/Non-Registered-Excise-Stock-Movement-Guide-English_V1.2-19-08-2022.pdf

Dubai September 15, 2022:

A Public Clarification was published on August 2022 by the FTA on ‘Excise Stock Movement Guide For Warehouse Keepers who are not Registered for Excise Tax’.

This guide helps Warehouse Keepers (WHK) understand their responsibilities of holding a warehouse in a Designated Zone (DZ) in the UAE and navigate the e-Services portal from a systems perspective. It further throws lights on the following aspects:

• The process of declaring Excise Goods that belong to Excise taxpayers that are held in the Designated Zone beginning January, 2021.
• Assist in understanding the Excise Tax compliance obligations that Warehouse Keepers have to comply with.
• An overview of the declaration forms that need to be filed by the Warehouse Keeper of Designated Zones in the UAE holding stock of Excise taxpayers and explanation of the icons and symbols included in the forms.

The sections of the guide offer a detailed explanation about the declaration forms and who, how and when a Warehouse Keeper should complete and submit them to the FTA.

Date: 14 Sep, 2022

External URL: https://www-khaleejtimes-com.cdn.ampproject.org/c/s/www.khaleejtimes.com/uae/uae-announces-worlds-first-paperless-tax-refund-experience-for-tourists?amp=1

Dubai September 14, 2022:

The UAE’s Federal Tax Authority (FTA) announced the world’s first paperless tax refund scheme for tourists.

Khalid Ali Al Bustani, Director General of FTA, said the system has been linked with the retailers hence all the receipts will be generated electronically and tourists will not have to carry paper receipts of their purchases for claiming VAT refunds. UAE is the first country in the world to achieve this milestone.

The tourists need to spend a minimum of AED 250 to claim a VAT refund. In addition, there are a number of kiosks placed at various locations in the country for tourists to claim a refund.

Read more.

Date: 13 Sep, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/FTA-Muwafaq-Emailer-2022-AllaboutVAT.pdf

Dubai September 13, 2022:

In line with the development goals set by the UAE to support small and medium enterprises, which represent the backbone of the national economy, the Federal Tax Authority (FTA) has begun designing and implementing Muwafaq Privilege Package which aims to provide innovative tax solutions to facilitate transactions for SMEs with speed, ease and accuracy.

The highlights of the Muwafaq package include:

• Acceleration of tax registration procedure.
• Preparing and offering low cost tax accounting programs to ease financial burdens of SMEs.
• Prioritization of SME procedure requests to facilitate ease of access to FTA services.
• Cooperation with service providers to offer certain taxpayers support services for SMEs.

View more benefits.

Date: 12 Sep, 2022

External URL: https://bit.ly/3eLtz8o

Dubai September 12, 2022:

The Tax Clinic initiative organised by the Federal Tax Authority (FTA) resumed its field activities across the emirates with sessions in Ras Al Khaimah and Sharjah. The sessions were designed to raise tax awareness and enhance tax compliance , while establishing and maintaining direct communication with business sectors,.

Two rounds of sessions were held last month under the campaign. The first of which was held over three days from 16 to 18 August at Tasheel Enjaz – Alrams Centre in Ras Al Khaimah, while the second round took place at the Tasheel-Al Thiqah Multi-Services Centre in Mleiha in the Emirate of Sharjah from 23 to 25 August.

The Tax Clinic initiative was launched way back in August 2018 in all seven emirates to raise tax awareness, assist taxpayers in overcoming any obstacles they face and ensure self-compliance. FTA representatives present across all locations answer questions about registration, how to file tax returns and pay tax-related obligations. FTA organized these remote awareness sessions under the Tax Clinic initiative for more than two years, bringing together hundreds of business sector representatives and tax system stakeholders.

FTA Director General His Excellency Khalid Ali Al Bustani said “The Federal tax Authority organizes the Tax Clinic campaign in collaboration with Departments of Economic Development and municipalities across all seven emirates, under the framework the FTA established for coordinating with its strategic partners in the public and private sectors providing top-quality services and ensuring the successful implementation of tax legislation.”

Read more.

Date: 11 Sep, 2022

External URL: https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN7_2022.pdf

Dubai September 11, 2022:

The Dubai Customs Authority published customs notice 07/2022 announcing a temporary ban on the export and re-export of iron (ferrous) scrap and paper waste. The customs notice states that the temporary ban on iron scrap and waste paper exports has been extended until September 30, 2022.

The UAE had issued a similar notice in 2020 which said that the ban is effective from May 15, 2020 for a period of four months ending 1September 15, 2020. This was in regards to strengthen the country’s domestic demand.

View the notice.

Date: 10 Sep, 2022

External URL: https://saudigazette.com.sa/article/624404/SAUDI-ARABIA/VAT-of-a-car-exported-from-Saudi-Arabia-cannot-be-refunded

Riyadh September 10, 2022:

Zakat, Tax and Customs Authority (ZATCA) clarified that it’s not possible to refund the paid value-added tax (VAT) on a car that has been exported from the Kingdom of Saudi Arabia. This clarification came while responding to an inquiry from a Saudi citizen asking about the possibility to receive VAT refund after he purchased a car, then exported it from the Kingdom.

He was asked to get a VAT refund in Saudi Arabia after he paid another new VAT in the country to which he exported the car to.

It stated that all the services and commodities are subjected to the VAT with a percentage of 15 percent if it has been provided by the establishment or by an activity or business owner registered in the VAT system.

Read more.

Date: 09 Sep, 2022

External URL: https://timesofoman.com/article/120719-tax-authority-organises-workshops-on-vat-and-corporate-income-tax

Musact September 9, 2022:

The tax authority, in coordination with the General Authority for Economic and Free Zones, organized two workshops on value-added tax and corporate income tax in the Salalah Free Zone, in the presence of several officials and employees of the authority, the industrial city of Raysut (Mada’in), the free zones of Salalah and Mazyona, the office of the governor of Dhofar and investors in the industrial zones.

The first workshop presented by Saeed bin Ahmed Al-Shanfari, Director-General of the Second General Directorate of Taxation, addressed several themes. The most important one was on Value Added Tax Act imposed on all supplies of goods and services in Oman unless exempted or submitted at zero percent. Other topics discussed were VAT mechanism, types of supplies, tax rates and tax-exempt supplies.

Participants were also introduced to VAT returns filing mechanism, annual revenue components, tax collections and services provided by the Tax Authority through its website.

The workshops were attended by a large number of employees and investors in the industrial zones, who widely interacted by asking questions to the tax specialists who in turn provided all the necessary clarifications about the tax.

Read more.

Date: 07 Sep, 2022

External URL: https://www.nbr.gov.bh/releases/142

Manama September 7, 2022:

The National Revenue Authority confirmed that as of October 16, 2022, the distinctive mark system of Digital Stamps will be applied to cigarette products in the country. This decision is implemented in line with the directives of the CEO of the National Revenue Authority, where all cigarette products available for sale must be marked with the stamp for trading in the local market.

The Authority called on all importers and traders in the region to deal in appropriate quantities and not to store large quantities of cigarettes that do not bear digital stamps, so that the stock will be cleared before October 16, 2022.

This directive will help them prepare for the ban on the sale, circulation, possession and supply of cigarettes that do not bear stamps. After the commencement of the digitization phase, any product in the supply chain that isn’t digitally stamped will have to be either destroyed or moved outside the territory of the Kingdom to avoid issues with the law for non-adherence. Penalties can range from administrative fines to cases for Public Prosecution.

Read more.

Date: 05 Sep, 2022

External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_942.aspx

Riyadh September 5, 2022:

The Zakat, Tax and Customs Authority (ZATCA) signed a Memorandum of Understanding (MOU) on tax administration with the Hungarian National Tax and Customs Authority. The MOU was signed by His Excellency the Governor of ZATCA, Eng. Suhail bin Muhammad Abanmi and Mr. Ferenc Fagogeli, Minister of State at the Ministry of Finance and Commissioner of the National Tax and Customs Authority of the Republic of Hungary.

The memorandum includes a general framework for cooperation in the field of tax administration between the two countries. It also discusses ways for cooperation in a number of fields notably in digital solutions, and review of experiences of both sides in tax applications.

This memorandum comes within the framework of the Authority’s endeavor to strengthen its strategic relations at the international level for upgrading tax system and its services.

Read more.

Date: 04 Sep, 2022

External URL: https://twitter.com/MOFKW/status/1564542419823198208

Kuwait City September 4, 2022:

Kuwait and the United Arab Emirates (UAE) have recently signed a treaty for the avoidance of double taxation, as announced by the the Kuwait Ministry of Finance on Twitter.

This is the first tax treaty that Kuwait has signed with a Gulf Cooperation Council member state. The objectives of the tax treaty are to expedite cooperation in tax matters, strengthen ties between the two countries and unite the economic and investment partnerships in the region.

This move is in line with the efforts of both countries to grow commercial trading, boost investment opportunities, enhance development goals and also provide full protection of goods and services exchanged in both the countries.

View more.

Date: 02 Sep, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/قائمة-السلع-الانتقائية.pdf

Manama September 2, 2022:

The National Bureau of Revenue (NBR) updated the selective list of goods subject to excise tax as a continuation of the recent excise tax developments.

Kindly click here to view the entire updated list of goods subject to excise tax.

Date: 01 Sep, 2022

External URL: https://bit.ly/3U0xXRb

Abu Dhabi September 1, 2022:

As part of the lecture series at Majalis Abu Dhabi at the President’s Court, the Federal Tax Authority (FTA) held an awareness session that was broadcast live on Majalis Abu Dhabi’s Instagram account on the procedure for UAE nationals to recover the Value Added Tax (VAT) incurred on building their new residences. The session was broadcast live on Majalis Abu Dhabi’s Instagram account.

The session was held remotely, bringing Emirati citizens together with a team of experts from the FTA who explained the process for refunding VAT to UAE citizens on the construction of their new residences.

Speakers at the session clarified the steps to be taken to recover VAT through the FTA’s e-Services, starting with submitting the refund request with all supporting documents, all the way to receiving the refund amount by bank transfer to the applicant’s account.

During the session, the FTA’s team of experts outlined the criteria for submitting a VAT refund request incurred on the construction of new residences by UAE citizens, explaining the steps needed to create and verify an e-Services account for new users, as well as how to create a special refund requests account. The team also outlined how to submit and track a refund request, the deadline for submission, and the required documents. They also highlighted which potential applicants are eligible to recover VAT on their new homes, as well as which taxes are refundable.

Read more.

Date: 29 Aug, 2022

External URL: https://zatca.gov.sa/ar/RulesRegulations/Taxes/Documents/RETT%20Implementing%20Regulation.pdf

Riyadh August 29, 2022:

A draft of the proposed amendments to the RETT Regulations was issued by ZATCA on 27 June 2022 for public consultation on the National Competitiveness Centre platform.

Zakat, Tax and Customs Authority’s (ZATCA) board of Directors approved all the proposed amendments to various Articles of the Real Estate Transaction Tax (“RETT”) Regulations without any changes. Click here to access the official announcement. Also view the RETT Regulations with approved amendments.

ZATCA has also issued a new version of the RETT Implementing Regulations (in Arabic) after incorporating the approved amendments. Click here to view the entire document.

Date: 28 Aug, 2022

External URL: https://www.khaleejtimes.com/crime/dubai-tobacco-facility-shut-down-for-tax-violations-worth-dh91-million

Dubai August 28, 2022:

Following a joint inspection campaign by the Federal Tax Authority (FTA) in cooperation with the General Administration of the Federal Criminal Police in the Ministry of Interior and the General Command of Dubai Police represented by the General Department of Investigation and Criminal Investigation, a non-compliant commercial establishment was seized and closed in Dubai after it was caught selling tobacco-based products without Digital Tax Stamps.

According to the press release, a total of 5,430,356 packs were confiscated from the violators for not bearing the trademark of Tax Stamps and the tax due on these products amounted to 91,833,016 AED.

The Authority took necessary legal measures against the violating establishment, as part of its continuous efforts to strengthen control over markets and prevent malpractices. The Authority reaffirmed its commitment to enhancing collaboration with all relevant federal and local government entities in order to ensure tax compliance across the emirates.

Read more.

Read more on Digital Tax Stamps to Track and Trace Excisable Products

Date: 16 Aug, 2022

External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_934.aspx

Riyadh August 16, 2022:

During a stringent inspection schedule, the Zakat, Tax and Customs Authority (ZATCA) thwarted an attempt to smuggle 1,100,000 narcotic pills, after finding it hidden in a toys and clothes consignment received through the port of Jeddah Islamic Port.

In coordination with the General Directorate of Narcotics Control, the 5 culprits were arrested right on time. All thanks to the Authority’s efforts, which asserted that it will continue to tighten customs control over the Kingdom’s imports and exports through all its customs outlets, in order to achieve security and protection of society from malpractices.

At the same time, the authority also called on citizens and residents to contribute to combating smuggling in all its forms by communicating any such violations to its hotline 1910 OR 00966114208417 or via e-mail 1910@zatca.gov.sa. Through these channels, the authority receives reports related to smuggling crimes in complete secrecy and will bestow a financial reward to whistleblowers if the notified information is accurate.

View more.

Date: 11 Aug, 2022

External URL: https://zatca.gov.sa/ar/E-Invoicing/Introduction/Guidelines/Documents/E-invoicing%20Detailed%20Technical%20Guidelines.pdf

Riyadh August 11, 2022:

The Zakat, Tax and Customs Authority (ZATCA) of KSA has issued a Simplified guide on E-invoicing requirements in English. The guide aims to provide the taxpayers an overview of the E-invoicing implementation in the Kingdom and its requirements to facilitate their readiness for first and second phase.

The guide acts as a guide for users to understand the taxpayer’s user journey in preparing and successfully onboarding their E-invoice systems, and complying with the E-invoicing regulations with respect to cleared and reported invoices.

View the E-invoicing Detailed Technical Guidelines

Also view the Simplified Guide for E-invoicing Requirements

Date: 10 Aug, 2022

External URL: https://bit.ly/3p8fgNf

Dubai August 10, 2022:

FTA calls tax registrants to benefit from the extension of the grace period for the re-determination of administrative penalties on violating tax law until December 31, 2022.Tax registrants who were not able to benefit from redetermination by December 31, 2021, can now benefit from the one-year extension.

The decision has been taken by the Cabinet in line with the wise leadership’s directives to reduce burdens on business sectors and enhance their abilities to contribute more to the growth of the national economy. The decision is also a part of the FTA’s goal to provide a legislative environment that encourages a high level of tax compliance.

View more.

Date: 09 Aug, 2022

External URL: https://www.nbr.gov.bh/publications/view/DS_manual_importers_Local_Manufacturers

Manama August 9, 2022:

The National Bureau for Revenue (NBR) has issued a detailed manual on Tax Stamp for domestic importers and local manufacturers. The Digital Stamp Scheme is a supervisory system to track excise goods from the manufacturing stage to the point of consumption to limit smuggling instances within the Kingdom of Bahrain, thereby reducing the possibility of Excise evasion.

The manual provides clarity on the digital tax stamp on excise products in the country. It contains the following:

• An overview of the Kingdom of Bahrain’s excise rules and procedures in regard to the Digital Stamps Scheme.
• The necessary guidance needed to navigate the Digital Stamps Scheme online portal and the process of ordering and tracking digital stamps from the perspective of an importer of excise products.

NOTE: The manual intends to provide general information only and does not represent exhaustive or legally binding guidelines. For more information as case, you may directly contact National Bureau for Revenue (NBR) via email ds@nbr.gov.bh

View more.

Date: 08 Aug, 2022

Dubai August 8, 2022:

The Federal Tax Authority (FTA) issued Decision 4 of 2022 for ‘Setting the Time Limit for Claiming Refund of VAT by Tourists’. Following are the key points of the decision.

• One year time limit has been set up for tourists to claim the refund of Value Added Tax through bank card or by cash, from the date of verification of the refund request.
• If Tourist does not claim the VAT refund within one year, in such case operator of the Tax Refunds for Tourist Scheme has to deposit the unclaimed amount to FTA within 1 month from expiration of the time limit of 1 year.

This decision will be effective from 1st June 2022.

View more.

Date: 05 Aug, 2022

External URL: https://www.khaleejtimes.com/crime/uae-lawyer-fined-dh3-million-sentenced-to-3-years-in-jail-for-tax-evasion

Abu Dhabi August 5, 2022:

The Abu Dhabi Criminal Court convicted the accused Asim Ghafoor, who has American citizenship, of committing two crimes of tax evasion and money laundering. The court sentenced him to three years in prison and imposed a fine of AED 3 million, along with deportation from the UAE.

The case arose upon the American authorities’ request for judicial assistance regarding their investigations of the accused for making suspicious money transfers to the state.

The UAE Public Prosecution (PP) started its procedures by studying the judicial assistance request and verifying the nature of the financial transactions related to the aforementioned accounts and bank transfers. Suspicions of money laundering crime aroused as the accused carried out international transfers without proof of their source. Based on the findings of the investigations, the accused was found guilty by the Criminal Court on charges of tax evasion and money laundering.

Read more.

Date: 29 Jul, 2022

External URL: https://bit.ly/3OI8DM2

Muscat July 29, 2022:

For those subject to VAT in the Governorate of Muscat the Auditor Services Department of the Tax Authority launched awareness campaigns on the importance of tax compliance from 24 July to 18 August.

Specialists from the Working Group carried out awareness-raising campaigns in the Auditor Services of the Tax Authority on 24 July by visiting a number of shops in the state of Muttrah. They provided subjects with necessary information on the accurate methods of recording tax and the timely submission of tax returns through the electronic portal of the tax authority.

During the awareness drive, brochures and manuals on tax laws were also distributed. These manuals also explain the step-by-step process to clear all tax transactions in their electronic system.

The widespread campaign contributes to raising awareness of the importance of tax compliance and also helps ease the completion of tax transaction.

View more details.

Date: 27 Jul, 2022

External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/News_912.aspx

Riyadh July 27, 2022:

Zakat, Tax and Customs Authority (ZATCA) clarified that it has started the procedures for implementing Phase II (Integration Phase) of E-invoicing. This phase aims to integrate E-invoicing solutions of taxpayers with ZATCA’s platform -FATOORA, where the authority will inform targeted taxpayers to complete procedures for implementing the second phase.

ZATCA has revealed that the implementation of Phase II of the E-invoicing project will begin on January 1, 2023, with selected taxpayers in the first wave. The selection was based on the revenue subject to VAT for the year of 2021 exceeding 3 billion SAR.

ZATCA stated that Phase II requires additional requirements, the most prominent being the integration of taxpayer’s E-invoicing solutions with FATOORA, issuance of electronic invoices in a specific format, and inclusion of additional fields in the invoice. Furthermore, the procedure of E-invoicing would occur gradually in waves, and ZATCA would inform the requirements directly at least six months prior to the integration date.

Read more.

Date: 22 Jul, 2022

External URL: http://wam.ae/en/details/1395303068351

Dubai July 22, 2022:

The Federal Tax Authority (FTA) significantly expanded its efforts in collaboration with various government departments, ministries and authorities to protect consumers from non-compliant products, combat tax evasion and ensure compliance with tax legislation and procedures.

During the first half of this year, the FTA carried out 9,948 inspection visits in local markets across the country in collaboration with the Ministry of Economy, Customs and Port Security and various Economic Development Departments.

Inspections conducted in the first half of 2022 increased by 104 percent compared to 4,878 inspections conducted in 2021 during the same period.

Read more.

Date: 15 Jul, 2022

External URL: https://www.wam.ae/en/details/1395303060045

Dubai July 15, 2022:

As the UAE gears up for the implementation of corporate tax in 2023. Ajman Free Zone records a significant increase of 33 percent in the number of corporate tax institutions.

H.E Eng. Ali AlSuwaidi, Director-General of Ajman Free Zone, stated that “The Federal Corporate Tax will become applicable in 2023 and is believed to propel the country forward.”

“Businesses are expected to align their relevant processes in order to ensure full compliance with the new law, and will need the assistance of specialized tax advisory firms specializing in this domain. As a global business hub, Ajman Free Zone is prepared to address these requirements with innovative solutions and cost-effective packages, while facilitating growth opportunities for tax advisory companies. Moreover, we recognize the importance of these entities to enhance our performance and ensure compliance with federal regulations.”

“In addition, the introduction of the corporate tax is set to position the UAE as an attractive destination for foreign direct investments. This will drive us to help companies grow and expand, streamline their business processes, and attract more foreign investors who can benefit from the competitive advantages of Ajman, one of the region’s top investment destinations,” he added.

Read more.

Date: 14 Jul, 2022

External URL: https://timesofoman.com/article/118068-suspension-of-withholding-tax-on-dividends-and-interests-extended

Muscat July 14, 2022:

As part of the Sultanate of Oman’s Vision 2040 plan with a vision of achieving high economic growth, His Majesty Sultan Haitham bin Tarik floated Oman’s Economic Stimulus Plan on 3 March 2021. According to the plan, a circular was issued by Capital Market Authority (CMA) announcing the suspension of the collection of withholding tax at 10% on dividends of shares, returns on Sukuk and interests on bonds till May 6, 2022.

The circular was addressed to the general public of investors, public joint stock companies, Muscat Stock Exchange, Muscat Clearing and Depository Company, audit and law firms and the companies operating in the field of securities.

However, in relation to the questions raised on social media by investors and those interested in investing on the Muscat Stock Exchange on the fate of the decision, a new Circular 11/2022 was issued announcing the extension of the suspension of the collection of withholding tax on dividends and interest for a further period of five years till 2025 (i.e no withholding tax will apply during these years). The CMA clarified that this decision to extend suspension till 2025 was taken as part of the economic stimulus plan.

Read more.

Date: 12 Jul, 2022

External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_919.aspx

Riyadh July 12, 2022:

The Zakat, Tax and Customs Authority (ZATCA) has requested all taxpayers from the business sector subject to selective goods tax to submit their tax returns for the months of the last May and June. The deadline for submission is set on the fifteenth of this month without fail.

The Excise Goods Tax in force in the Kingdom is imposed on goods that have a negative effect on public health or the environment at varying rates and the list includes soft drinks, energy drinks, sweetened drinks, and tobacco and its derivatives.

Taxpayers can submit their declarations quickly through the website (zatca.gov.sa), in order to avoid the penalties for non-submission within the specified period. The fines are at the rate of 5% of the value of the tax that should have been declared for each month’s delay in submitting the declaration.

Read more.

Date: 07 Jul, 2022

External URL: https://timesofoman.com/article/118602-omr301mn-collected-as-vat-in-oman-in-2021

Muscat July 7, 2022:

The value-added tax (VAT) increased by 0.3 percent over the estimated figure to reach OMR 301 million in 2021 in Oman. The authorities also collected OMR 103 million in selective tax, an increase of 8.8 percent during the same period.

This followed a unified Gulf Cooperation Council (GCC) agreement to implement VAT to find alternative sources of revenue other than oil and gas.

Statistics further reveal that the total tax and fee revenues decreased by 8 percent to reach OMR1.49 billion at the end of 2021 compared to the approved budget estimate of OMR1.62 billion. This decline was mainly attributed to the repercussions of the COVID-19 pandemic on the national economy which had resulted in frequent closures and restrictions on goods and travel movements through international ports.

Read more.

Date: 01 Jul, 2022

External URL: https://bit.ly/3NFNy49

Dubai July 1, 2022:

The Federal Tax Authority (FTA) has issued a public clarification EXTP007 offering guidance on excise goods. The guide explains the scenarios where relief from excise tax may be granted for excise goods that are found to be deficient, shortage, considered as wastage, or where goods are intended to be destroyed.

The highlights of the public clarification are as follows:

Excise goods that are considered wastage or deficient when located within a designated zone will be treated as released for consumption and therefore will be subject to excise tax. However, as an exception, goods will not be considered to be released for consumption where:

Where these conditions are met, a taxable person will not be required to account for excise tax on deficient or missing goods.

View more in the guide.

Date: 30 Jun, 2022

External URL: https://saudigazette.com.sa/article/622375

Riyadh June 30, 2022:

Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) have denied the existence of a value-added tax (VAT) exemption certificate.

The Authority clarified that all business owners in the region who engage in economic activities are to obligatory register in the VAT system if their annual revenues reach the mandatory limit, which is SR 375,000. However, business owners who engage in economic activities and whose annual revenues are less than SR 187,500 are not obligated to register.

The Authority also clarified that businesses whose annual revenues exceed SR 187,500 but do not exceed SR 375,000 are eligible for the optional VAT registration.

If revenue touch the mandatory registration threshold, then business owners are required to register within 30 days.

Read more.

Date: 29 Jun, 2022

External URL: https://tax.gov.ae/DataFolder/Files/Guides/VAT/VAT%20Guides/VATP029%20Gold%20Making%20Charge15062022.pdf

Dubai June 29, 2022:

The Federal Tax Authority (FTA) has recently released a Public Clarification – VATP029 on Gold Making Charges, iterating that the suppliers of the gold jewellery are required to pay VAT on the making charges component by charging the same in the invoice, which would not be covered under the ‘special reverse charge mechanism’.

This Public Clarification provides detailed guidance on the VAT legislation application pertaining to making charges received by gold jewelers and further explains several instances where the making charges are taxable under VAT or not.

View the file.

Date: 22 Jun, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/E-Invoicing-Implementation-Resolution-Ar.pdf

Riyadh June 22, 2022:

Electronic Invoicing (e-Invoicing) has gone live in Saudi Arabia (KSA) since December 4, 2021 and its further implementation has been planned in two phases:

1. Phase 1– Generation phase- which has gone live since December 4, 2022.
2. Phase 2– Integration phase- to go live on January 1, 2023.

With regards to the Integration phase, it is anticipated that six months before the second go-live date i.e by July 1, 2022, the Zakat, Tax and Customs Authority (ZATCA) will invite the first wave of taxpayers to integrate their IT systems with ZATCA’s Fatoora Portal.

The ZATCA released an updated draft of the e-Invoicing Implementation Resolution in Arabic on May 27, 2022. The changes made to the resolution, annexes and the related technical specifications are relevant for the latter phase that will go live on January 1, 2023.

Date: 15 Jun, 2022

External URL: https://tax.gov.ae/ftatacsoft5cms/DataFolder/Files/Guides/VAT/Awareness/Get%20to%20know%20your%20Tax%20Obligations.pdf

Dubai June 15, 2022:

As a UAE business resident, you need to be aware of your varied tax obligations and abide by the tax laws in the country. That’s why it is important you understand your federal, state and local tax requirements. This will help you file your taxes accurately and make timely payments, thus saving you from penalties and encountering trouble with the law.

In this regard, the Federal Tax Authority (FTA) has issued a Comprehensive Guide on ‘Know your Tax Obligations’ to orient Taxpayers with their tax liabilities. The guide includes:

• Criteria for VAT registration
• Supplies exempt from VAT
• Zero-rated VAT supplies
• VAT records and supporting documentation
• Formation of tax groups
• Creating and using e-services account
• Obligations after tax registration
• Elements of a valid tax invoice
• Timely submission of tax returns and tax return periods
• Entitlement to recover input tax
• Contact details of FTA

For more details log onto www.tax.gov.ae

Date: 14 Jun, 2022

External URL: https://timesofoman.com/article/117882-oman-tanzania-sign-several-agreements-in-various-fields

Muscat June 14, 2022:

The Sultanate of Oman has signed an agreement with the Republic of Tanzania to avoid double taxation and prevent tax evasion on income. A number of other memoranda of understanding have been signed-in various fields that cover energy, tourism, natural resources, higher education and training and national museums.

A tripartite memorandum was signed between the Oman Chamber of Commerce and Industry, the Tanzania Chamber of Commerce, Industry and Agriculture and the Zanzibar National Chamber of Commerce. A memorandum was signed between the Oman Investment Authority and the Zanzibar Investment Promotion Authority.

An investment fund will also be established between the two countries that will be concerned with investment in several fields including agriculture, fishing and mining.

Read more.

Date: 13 Jun, 2022

External URL: https://saudigazette.com.sa/article/621693

Riyadh June 13, 2022:

Saudi Arabia increased customs tariffs on 99 commodities including vegetables, livestock and fish from June 12, 2022.

Mohammed Al-Jadaan, Minister of Finance and Chairman of the Zakat, Tax and Customs Authority (ZATCA), issued the decision of adjusting the customs tariffs based on the ceilings committed by the Kingdom in the World Trade Organization (WTO). The Saudi government is hoping to use custom increases to improve the balance of payments, increase exports and bring the private sector’s contribution to the gross domestic product (GDP) to 65%.

Among the changes are customs tariffs on sheep and goats rising from zero to 7%. Twelve types of fish and shrimp have also seen a rise with a minimum of 6% and a maximum of 15% respectively. A number of vegetables including onions, cucumbers, carrots, eggplant and zucchini now have import tariffs of 5%, up from zero.

The move came pursuant to the powers granted to the finance minister to protect and encourage national industries and local agricultural products.

Read more.

Date: 06 Jun, 2022

External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/news_886.aspx

Riyadh June 1, 2022:

Zakat, Tax and Customs Authority (ZATCA) announced the launch of an initiative to waive fines and penalties for tax payers. The exemption will remain applicable for a 6-month period starting from 1 June 2022 till 30 November 2022.

The fines include delay in registration, late payment, report submissions and other general provisions related to VAT. However, the initiative doesn’t include fines related t tax evasion and fines that had to be paid before the launch of the initiative.

ZATCA has requested taxpayers to fully review the initiative through the simplified guideline available on its website. It includes a detailed explanation of the most important aspects of the decision, the types of penalties and the conditions that apply for benefiting from the exempt fines.

The Authority has urged all taxpayers to benefit from the initiative before it ends on November 2022. Any queries in this regards can be clarified by:

• Dialing their call center number 19993
• Or through their twitter account @Zatca Care
• Or sending an e-mail to info@zatca.gov.sa.

Read more.

Date: 01 Jun, 2022

External URL: https://www.reuters.com/world/middle-east/israel-uae-sign-free-trade-deal-ambassador-2022-05-31/

Dubai June 1, 2022:

Israel and UAE sign a free trade agreement on May 31, 2022. The pact aims to boost ties between the two countries by eliminating most tariffs and lifting their annual bilateral trade to more than $10 billion within five years. As per the official data, Emirati-Israeli trade records stood at $1.2 billion in 2021.

Tariffs will be removed or reduced on 96% of goods traded between the nations including foods, medicine, diamonds, fertilizers, jewelry and chemicals.

The agreement was signed in Dubai by Minister of Economy and Industry Orna Barbivai and her counterpart, UAE Minister of Economy Abdulla bin Touq Al-Marri after months of negotiations.

Read more.

Date: 31 May, 2022

External URL: https://timesofoman.com/article/116617-expat-faces-fine-jail-term-and-deportation-for-tax-evasion

Muscat May 31, 2022:

An expat has been fined OMR 1,000 and was imprisoned for a month for non-adherence to tax returns submission. The court also ordered his deportation from the country at the end of his sentence.

Tax Authority said in a statement “The Court of First Instance in the Wilayat of Al Buraimi recently issued a court ruling against one of the companies operating in the Sultanate of Oman that is not obligated to submit tax returns for violating the provisions of the Income Tax Law issued by Royal Decree No. 28/2009 and committing a misdemeanor of non-compliance to submit tax returns.”

The Anti-Tax Evasion Department received a notification from one of the partners in the company on the mishandling of financial transactions. By referring to the records in its electronic system it was found that the accused did not file tax returns.

Read more.

Date: 30 May, 2022

External URL: https://saudigazette.com.sa/article/621162/SAUDI-ARABIA/Passengers-purchases-from-Bahrain-exceeding-SR3000-must-be-disclosed

Dammam May 30, 2022:

The Zakat, Tax and Customs Authority (ZATCA) clarified whether fees will be applied to devices that are transported by travelers from Bahrain via the King Fahd Causeway.

The authority confirmed that travelers coming from Bahrain via the King Fahd Causeway bringing purchases worth more than SR 3,000 would be obliged to disclose it.

ZATCA noted that the fees applied to travelers will only be applied to new items wrapped in factory packaging that has not been used yet. It also indicated that travelers would be charged a value-added tax (VAT) of 15% on all imports they bring with them.

Read more.

Date: 27 May, 2022

External URL: https://saudigazette.com.sa/article/620938

Riyadh May 27, 2022:

Saudi Arabia is contemplating a cut down in the VAT rate which was increased to 15 percent in 2020 during COVID times. The VAT rate was tripled to shore up finances hit by low oil prices and diminishing global demand due to the raging pandemic.

Minister of Finance Mohammed Al-Jadaan said “We will ultimately consider cutting the VAT but at the moment we are still replenishing the reserves.”

Jadaan added “Saudi Arabia’s policy on fiscal sustainability would ensure that reserves do not fall below a certain percentage level of the country’s gross domestic product.”

The world’s biggest crude exporter, whose economy is estimated at $1 trillion, said in its budget for 2022 that the Fiscal Sustainability Program aims to de-couple the economy from oil price fluctuations, realizing several economic benefits for the non-oil economy and the private sector.

Read more.

Date: 26 May, 2022

External URL: https://www.newsofbahrain.com/bahrain/81376.html

Manama May 26, 2022:

The Ministry of Industry in cooperation with the National Bureau of Revenue (NBR) began inspections in the city to trace down tax violators early this year. Inspections were carried out in nearly early 40 trading outlets across Bahrain to ensure stringent compliance with the readjusted VAT rules. The retail outlets found guilty of tax evasion are facing fines and jail terms.

Eighteen trading establishments are facing fines of up to 10,000 BD for having violated the VAT laws in the region. The lawbreakers can also be jailed for five years.

The ministry and NBR stressed the importance of complying with readjusted VAT regulations and urged customers to report defaulters on their hotline 80008001 or send an email to vat@nbr.gov.bh

Read more.

Date: 18 May, 2022

External URL: https://zatca.gov.sa/ar/MediaCenter/News/Pages/News_879.aspx

Riyadh May 18, 2022:

During the inspection process of one of the vehicles at Al Haditha port, Zakat, Tax and Customs Authority (ZATCA) managed to thwart an attempt to smuggle 29,000 Captagon pills found hidden in an artistic way inside glass boxes containing cheese.

The Captagon pills were discreetly inserted in plastic gloves and placed inside cheese containers, which were then cleverly placed within the luggage carried by the smuggler inside the vehicle. In coordination with the General Directorate of Narcotics Control, the consignment was seized and the culprit was arrested.

The authority confirmed that smugglers are seeking to exploit everything to try to introduce such contraband into the Kingdom through its land, sea and air customs outlets. However, the authority is on the lookout for such illegal attempts and seeks to combat drug smuggling of all kinds in its Kingdom.

The authority called on everyone to contribute to combating smuggling and protecting the society and the national economy by reporting defaulters on the number designated for security reports (1910) or via e-mail 1910@zatca.gov.sa or the international number (00966114208417).

Read more.

Date: 17 May, 2022

External URL: https://zatca.gov.sa/ar/HelpCenter/guidelines/Documents/E-commerce%20Guideline.pdf

Riyadh May 17, 2022:

The General Authority of Zakat and Tax (GAZT) launched an interactive guide to educated online stores about the requirements of value-added tax. The guide will further enable e-storeowners to abide by their duties related to value-added tax and guide them on how to register, file a declaration and pay the due tax.

The guide outlines electronic stores as those operating through independent websites, social media platforms, smartphone applications, or instant chat applications.

The guide also does clarify the obligations of online store owners whose annual sales exceed 375,000 riyals annually before the Zakat and Income Authority. It includes registering for value-added tax, displaying the tax certificate in the online store, and filing tax returns on time.

View the Value-Added Tax Guide for E-Shops in Arabic.

Read more.

Date: 13 May, 2022

External URL: https://wam.ae/en/details/1395303034112

Abu Dhabi May 13, 2022:

A Memorandum of Understanding (MoU) was signed between Abu Dhabi Ports Group and Kuwait General Administration of Customs for Virtual Trade Corridor between the two countries. This agreement will help in simplification and facilitation of cross-border trade with the help of new policies, procedures and integrated solutions.

With the establishment of the new virtual trade corridor, customs authorities in both countries will be able to access pre-arrival information for international cargo movements, making cross-validation of information significantly faster and promoting pre-clearance of goods. The MoU will also provide for accelerated procedures for expediting shipments of perishable goods and reduce dwell time at borders. The digital integration also has significant safety and security benefits, improving visibility for authorities over any possible risks associated with goods that move between the two nations, as well as reducing the inspection rate and simplifying procedures for authorization holders.

UAE Ambassador to Kuwait, Dr. Al Neyadi said, “The UAE and Kuwait have a vast cooperation opportunity as they both have exceptionally promising markets. We are confident that the cooperation between AD Ports Group and Kuwait General Administration of Customs will enhance trade exchange between the two countries, and will support their efforts in achieving digital transformation goals, streamlining shipping procedures to reduce transportation and shipping costs, as well as expanding economic cooperation.”

Read more.

Date: 09 May, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/Financial-Services-Sector-VAT-Guide.pdf

Muscat May 9, 2022:

The Oman Tax Authority (OTA) has finally issued a long-awaited VAT Guide for the Financial Services Sector in English on its website.

The Guide offers guidance on the application of the VAT Law and its Executive Regulations. It cover prime topics in banking, insurance, and Islamic Finance and outlines VAT treatments for many transactions and items, making it a useful reference for banks and other financial institutions when establishing suitable VAT treatment.

Date: 06 May, 2022

External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authoritys.board.of.directors.adopts.ftas.financial.statements.for.2021.explores.development.plans.aspx

Dubai May 6, 2022:

During a meeting at the Authority’s headquarters, the Board of Directors reviewed a report on FTA’s plans to further enhance its tax system’s procedures and upgrade its services. The Authority wishes to offer customers fast and hassle-free services on an easy-to-use digital platform in line with international best practices. The report called for implementing a host of initiatives to advance the FTA’s performance through continuous development and follow-up that uplift its tax system efficiency to meet taxpayers’ aspirations. On a different note, the FTA Board also examined the progress made in developing the draft corporate tax law.

HH Sheikh Maktoum issued directives to maintain the pace of upgrades to FTA’s services, boost the UAE’s competitive edge in terms of services offered, and support the country’s vision to become the world’s highest-ranking government on trust and performance indicators. The directives call for focusing on the customer and enhancing competencies to become a world leader in government services, drawing on UAE’s principles for the next 50 years.

The Happiness of FTA Customers

FTA’s reports demonstrate its efforts to maintain high performance scores across all activities and elevate its services to ensure satisfaction of all customers from varied segments of the society. His Highness iterated “FTA is committed to strengthening its relations with all entities involved in implementing the tax system in the government and private sectors, and to fulfilling its role in driving nationwide economic diversification policies through the administration and collection of federal taxes, in line with best practices.”

HH Sheikh Maktoum explained “The Authority is constantly reviewing its executive regulation for each tax legislation in order to ensure top-level performance and streamlined procedures. The phases ahead will witness sweeping developments and upgrades to tax systems in order to enhance overall service quality.”

Read more.

Date: 05 May, 2022

External URL: https://gulfnews.com/business/analysis/uae-corporate-tax-law-will-continue-incentives-for-free-zone-based-entities-1.1651386482142

Dubai May 5, 2022:

Since the announcement of UAE’s nine percent corporate income tax (CIT) from June 2023, a widely discussed topic has been the taxability of free zone entities. The great news is that Corporate Tax will continue to benefit free zone-based entities with a host of incentives.

The UAE Ministry of Finance (MoF) issued a public consultation document inviting comments from stakeholders on the proposed legislation. This progressive step provides an opportunity for businesses to play a key role in formulating the UAE Corporate Tax law. The consultation document outlines the following points:

• The UAE Corporate Tax regime will honour the tax incentives currently being offered.
• Zero percent CIT rate will be applicable if the free zones entity earns income from outside UAE or within free zones.
• Audited financial statements are a must.
• Mainland branches of free zone entities will be taxed at the regular tax rate on mainland income.
• Free zone entities with passive income such as dividend, royalty and interest from the mainland will attract a zero percent tax rate. Similarly, such entities in designated zones for VAT purposes supplying goods to the mainland will also be eligible for zero percent rate.
• Free zone entities can be a regional sourcing hub; however payments made by mainland entities will not be a deductible expenditure.
• Any other mainland sourced income to the free zone will disqualify it from the zero percent rate.
• Free zone entities can make an irrevocable decision to be subject to the regular corporate tax rate.
• For computing taxable income, accounting profit/loss would be the starting point. The default tax year would be the Gregorian calendar year. Dividends and capital gains would be exempt subject to certain conditions. Expenses on account of interest payments have been limited to 30 per cent of EBITDA and only 50 per cent of entertainment expenses would be allowed as deduction.

Read more.

Date: 30 Apr, 2022

External URL: https://www.mof.gov.ae/en/resourcesAndBudget/Pages/Corporate-Tax-Submission-Public-Consultation.aspx

Dubai April 30, 2022:

The Ministry of Finance (MoF) issued a Public Consultation Document of the proposed Corporate Tax Law by FTA UAE.
– Click here to view and download the document.

MoF urges taxpayers to provide clear and concise comments or views on the main features and implementation of the UAE CT regime in the region. You are encouraged to focus your comments on aspects of the proposed CT regime that may help to reduce compliance cost or complexity and improve certainty for both the tax administration and taxpayers alike. Comments on areas not covered in this document are also welcomed.

NOTE: Views to be submitted on or before 20 May 2022.

For support call 800533336 or send an email to info@mof.gov.ae

Date: 29 Apr, 2022

External URL: https://tax.gov.ae/en/media.centre/news/the.fta.launches.raqeeb.aspx

Dubai April 29, 2022:

The Federal Tax Authority (FTA) launched Raqeeb, a “whistle-blower program for tax violations and evasion that aims to raise the level of tax compliance in the UAE and reduce tax evasion cases.

Effective from April 15, 2022, the whistle-blower program allows the Authority to receive reports from individuals on tax evasion cases, tax-related fraud, and violations of tax legislation. It also allows the Authority to verify the reports and grant monetary rewards to informants when certain conditions are met.

The Authority emphasized the newly launched whistle-blower program aims to enhance transparency and competitiveness in the field of doing business, raise tax compliance rates, and boost tax awareness and society’s confidence in the tax system. The program also motivates individuals to carry out their social responsibilities and contribute to combating tax violations. Informants will be given monetary rewards if the report leads to a collection of tax amounts worth more than AED 50,000.

Reporting information can be done through the Authority’s website, which contains a comprehensive guide on the reporting mechanism, procedure for obtaining monetary rewards and other legal matters related to the program.

Date: 26 Apr, 2022

External URL: https://gulfbusiness.com/saudis-zakat-tax-and-customs-authority-launches-app-to-improve-taxpayer-experience/

Riyadh April 26, 2022:

The Zakat, Tax and Customs Authority (ZATCA) has designed a new application to offer fast, reliable, and high-quality services to taxpayers. The App allows taxpayers from the business sector to complete their services in a much more effective manner. It also offers technical solutions to improve the taxpayer’s experience and contributes to enhancing the level of services provided by the Authority.

The ZATCA APP in total provides a host of 33 services, such as submitting zakat and tax returns, registering businesses and establishments, submitting objections, and viewing zakat and tax certificates. The application also allows taxpayers to inquire about the payment processes instead of visiting the Authority’s branches.

One of the most prominent advantages provided by the app is the online payment service that helps in completing the process of services in a more reliable and secure manner.

Read more.

Date: 25 Apr, 2022

External URL: https://www.khaleejtimes.com/business/compliance-on-tax-regulations-rises-in-q1

UAE April 25, 2022:

During the first quarter of 2022, businesses across the UAE have adopted the new tax structure and increased their compliance on regulations by depicting 2.42 percent growth in registration for value-added tax (VAT), as per data reports.

The Federal Tax Authority (FTA) said the number of VAT registrants rose to 367,157 this quarter (January-March) compared to 358,468 in the same quarter last year.

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, issued directives to maintain the pace of upgrades made to the FTA’s services in line with international best practices and digital transformation plans.

Read more.

Date: 22 Apr, 2022

External URL: https://timesofoman.com/article/115553-shops-urged-to-put-list-of-all-vat-exempt-items-in-oman

Muscat April 22, 2022:

Shop owners in Oman have been urged by the Consumer Protection Authority (CPA) to clearly label the list of zero-rated VAT products so as to not confuse or try to trick customers into paying more for such goods.

The CPA issued a notice stating “We direct all the commercial centers and shops across the various governorates of the Sultanate of Oman to affix labels mentioning all goods exempt from value-added tax.” Most of these VAT exempt items are staples essential for day-to-day life.

The list of items exempted from VAT include:
• Foodgrains such as wheat, rice, barley and corn, and flours made from them.
• Milk products in their various forms, i.e. plain milk, milk powder, cheese and yoghurt.
• Varieties of breads; water, salt and sugar.
• Fruits and vegetables.
• Meat, fish, and poultry.
• Coffee and tea.
• Medicines and baby products.

Read more.

Date: 20 Apr, 2022

External URL: https://timesofoman.com/article/115722-submit-your-tax-returns-by-this-date-tax-authority

Muscat April 20, 2022:

The Oman Tax Authority (OTA) has urged taxpayers subject to the provisions of Value-added Tax (VAT) to submit tax returns for the first three months of 2022 by the end of April.

The Tax Authority said in a statement: The period for submitting tax returns for the first quarter of 2022 ends on April 30. Hence the concerned are requested to file their returns before the lapse of the mentioned period.

Read more.

Date: 19 Apr, 2022

External URL: https://tax.gov.ae/en/media.centre/news/bahraini.delegation.introduced.to.the.uaes.marking.tobacco.and.tobacco.products.scheme.aspx

Dubai April 19, 2022:

In a joint virtual meeting between officials from the Federal Tax Authority (FTA) and the National Bureau for Revenue (NBR), an official delegation from the Kingdom of Bahrain was oriented on the UAE’s Marking Tobacco and Tobacco Products Scheme.

Implemented by FTA, the Digital Tax Stamps system enables the tracking of tobacco products electronically to combat tax evasion, protect consumers from fraud, prevent the sale of illegal products, and ensure the collection of due taxes on tobacco products sold in the market. FTA’s representatives briefed the attendees on the objectives, scope and steps for implementing the various phases of the Tobacco Products Marking Scheme.

His Excellency Khalid Ali Al Bustani, Director-General of the FTA, discussed ways to enhance cooperation, develop relations and work together to build expertise in the field of taxation. His Excellency opined that the meeting reflects the strong bilateral relations between the two countries, as well as their commitment to strengthen their partnerships in the field of taxes by exchanging information and experiences. He added ‘These meetings are essential to enhance cooperation between tax authorities in neighboring countries and to benefit from the regulations applied in the tax sector.’

Read more.

Date: 15 Apr, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/2022-04-14-Raqeeb-Whistleblower.pdf

Dubai April 15, 2022:

The Federal Tax Authority (FTA) released a user guide to help prepare informants on submitting information and leads in a confidential manner to inform the FTA of any natural or legal person evading tax, or committing other tax offenses. This measure aims to raise the level of tax legislation compliance in the country and reduce tax evasion cases.

This guide is designed to help :
• Understand the whistleblowing program.
• Report business practices that violate the applicable tax legislation.
• Understand the process and eligibility to receive a monetary reward where tax is successfully collected from tax offenders.
• Provide accurate answers to the questions on the whistleblowing form by explaining what information is required to provide.
• Understand the icons and symbols to complete the whistleblowing form.

Read more about the Whistleblower System for violation and tax evasion.

Date: 08 Apr, 2022

External URL: https://tax.gov.ae/en/media.centre/news/fta.launches.youth.council.aspx

Dubai April 8, 2022:

The Federal Tax Authority (FTA) has launched a Youth Council, an initiative in alignment with the Federal Youth Authority. The council intends to support and empower the youth in the region.

The newly formed council will simultaneously enable the FTA to benefit from the ideas and vision of its council members and fulfill several objectives. This includes adopting its members’ suggestions to continuously improve its services, preparing a new generation of future leaders and providing a platform for innovation. The outputs are linked with the FTA senior management for use in implementing the Authority’s future strategies.

His Excellency Khalid Ali Al Bustani, Director-General of the FTA, stressed that this important step comes within the framework of government directions to enhance the empowerment of young people in various sectors and facilitate their role in public, community and business life.

Read more.

Date: 07 Apr, 2022

External URL: https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/E-Services_Interactive_Guideline.pdf

Riyadh- April 7, 2022:

The Zakat, Tax and Customs Authority (ZATCA) has compiled a list of guidelines to guide taxpayers and business owners in the region to use their e-services portal. The detailed guide comprises an in-depth explanation of the e-services offered and helps taxpayers to learn more about successfully processing transactions online.

The guide consists of service steps to complete each procedure for ZAKAT, VAT, Excise Tax, Withholding Tax, Corporate Income Tax, Real Estate Tax Service, Customs and General Services. The ultimate goal is to educate taxpayers to perform varied transactions and make the experience much easier and faster.

View the guidelines in the file.

Date: 06 Apr, 2022

External URL: https://zatca.gov.sa/ar/HelpCenter/guidelines/Documents/Objection%20on%20ZATCA%20decisions.pdf

Riyadh- April 6, 2022:

The Zakat, Tax and Customs Authority (ZATCA) has released a detailed guide clarifying the process to file an objection against a tax assessment raised by ZATCA. This is for those cases where taxpayers disagree with their decision.

The guide is available only in Arabic at the moment and can be viewed here.

Date: 04 Apr, 2022

External URL: https://www.khaleejtimes.com/uae/new-uae-corporate-tax-ministry-to-review-reduce-service-fees-for-businesses

Dubai- April 4, 2022:

The UAE Ministry of Finance (MoF) announced on 31 January 2022 that it will introduce a federal corporate tax regime in the region, which will come into effect on 1 June 2023 and will apply to net profits generated during financial years starting on or after 1 June 2023.

In lieu of this, the MoF plans to review the services fees in all ministries and federal entities. The review aims to reduce the fees in order to lessen the financial burden on the business community in the country.

Read more.

Date: 01 Apr, 2022

External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.confirms.systems.for.vat.refund.scheme.for.tourists.aspx

Dubai- April 1, 2022:

The Federal Tax Authority (FTA) confirmed that the VAT Refund Scheme for Tourists is witnessing continuous advancement and expansion. It has introduced more facilities to streamline and speed up the refund process for tourists eligible for a tax refund.

The authority noted that the system witnessed a significant increase in demand recently, as travel restrictions eased out. Mega event EXPO 2020 also helped the tourism sector in the UAE recover from the setback caused by the pandemic. The government’s efforts in supporting the travel industry was also another contributing factor.

The Refund Scheme for Tourists includes an integrated electronic system that creates a direct link between 13 air, land, and maritime entry/exit ports across UAE, with more than 13800 registered stores, allowing tourists to submit tax refund requests on their purchases. The system allows eligible tourists to reclaim the VAT incurred, provided they meet the specified criteria. The UAE is one of the first countries to implement such a Refund System characterized by the speed of completion, ease of procedures, and clarity.

During the Global Tourism Forum held at Expo 2020 Dubai, FTA in collaboration with its authorized operator (Planet) for VAT Refund Scheme – showcased the pandemic’s implications on shopping patterns and consumers’ behaviours along with economic indicators of recovery globally and locally. The event brought together representatives from many departments including the Department of Economic

Read more.

Date: 24 Mar, 2022

External URL: https://gulfnews.com/business/kuwait-govt-moves-closer-to-selective-tax-system-1.86623564

Kuwait- March 24, 2022:

Due to high inflation rates and turmoil in global markets, both the national assembly and the people of Kuwait are likely to reject the VAT system in future. Hence the Kuwaiti government has deferred its plans to implement value-added tax (VAT) any time soon.

However, Kuwait is contemplating a move towards the implementation of a selective taxation system ranging from 10 to 25 percent. This excise tax will cover tobacco products, sweetened drinks, expensive goods such as watches, jewelry and precious stones as well as luxury cars and yachts, instead of VAT.

Sources expect that the selective tax will fetch around 500 million dinars annually to the government.

View more.

Date: 23 Mar, 2022

External URL: https://tax.gov.ae/en/media.centre/news/fta.launches.new.website.with.topnotch.features.that.promote.happiness.among.customers.and.enhance.tax.system.efficiency.aspx

Dubai- March 23, 2022:

The Federal Tax Authority (FTA) has launched an advanced website to provide an innovative digital experience, clarity of content and user-friendly browsing for taxpayers. The latest electronic display technologies on the site also enhance customers’ satisfaction and happiness, and further improve the tax system efficiency.

The Authority stated that its new website www.tax.gov.ae is designed to educate and spread awareness about tax rules and regulations in the country. The website allows digital participation and provides services in accordance with needs of taxpayers.

The platform offers 24/7 direct interaction between the Authority, business sectors, relevant authorities in the government and private sectors, and all interested groups inside and outside the country. FTA also reaffirmed that its new website incorporates advanced features to enable people of determination to access services and information with ease.

Read more.

Date: 22 Mar, 2022

External URL: https://timesofoman.com/article/114481-cpa-probes-complaints-about-vat-fraud-by-commercial-establishments

Muscat- March 22, 2022:

The Consumer Protection Authority (CPA) has started an investigation into complaints filed by consumers against some commercial establishments for charging value-added tax on products that are free of tax.

The Authority said “Work is underway to further probe into the matter, verify the accuracy and arrest the violators.”

The authority is fully monitoring the markets, and has requested consumers to actively report any violations that contradict regulations and laws of the land, that were established to organize markets, and protect consumer rights.

Read more.

Date: 21 Mar, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/قرار-رقم-89-2022-بتحديد-السلع-الغذائية-الخاضعة-لضريبة-القيمة-المضافة-بمعدل-الصفر-بالمائة.pdf

Muscat- March 21, 2022:

Oman Tax Authority (OTA) through Decision No. 89/2022 has expanded the list of zero-rated food items under zero-rated VAT. The new list now includes food products such as barley, corn, wheat, soybeans, cotton seeds, coconut or copra, and poultry food.

The products which are eligible for zero-rating are classified as per the Harmonized Code of Oman Customs tariff. The list is currently available only in Arabic.

Date: 19 Mar, 2022

External URL: https://www.nbr.gov.bh/releases/116

Manama- March 19, 2022:

Since the roll-out of the law to double VAT in January 2022, the Ministry of Industry, Commerce and Tourism, in cooperation with the National Revenue Authority(NBR), conducted inspection campaigns on shops and commercial establishments. As many as 40 shops and commercial establishments were inspected in the Kingdom to check their compliance. The main aim of the inspections was to spread awareness of the mechanisms to be followed to apply VAT in its modified basic proportion and ensure the interest of consumers.

The inspection campaigns detected around 29 violations that require the imposition of administrative fines that may reach 10,000 Bahraini Dinars in accordance with the law and also necessitated the closure of two precautionary stores. NBR is geared to take legal measures against the violating facilities, and refer those proven of an evasion crime to the authorities. Penalties could even reach up to five years imprisonment and a fine equivalent to three times the evaded added value.

Citizens and residents who come across any violation of the VAT law can report their complaints to the authorities by dialing 80008001 24/7 or sending an email to vat@nbr.gov.bh

Read more.

Date: 18 Mar, 2022

External URL: https://zatca.gov.sa/en/MediaCenter/News/Pages/news_482.aspx

Riyadh – March 18, 2022:

Tax inspectors at Zakat, Tax and Customs Authority’s (ZATCA) carried out more than 1,300 visits in markets and shops in the Kingdom as part of the national program to combat commercial concealment.

The inspections took place in Riyadh, Makkah, Medina, Qassim, and Jazan, and included various shops, such as auto parts markets, health, food and beverages, oil and gas. Riyadh region witnessed the highest number of inspections, with a total of 126 visits.

According to the Authority, the visits resulted in the detection of 88 cases of initial suspicion of commercial concealment. This comes with ZATCA’s keenness to unify efforts in coordination with its government sector partners to combat commercial concealment in all its forms, minimize commercial transaction violations and increase tax compliance.

Read more.

Date: 16 Mar, 2022

External URL: https://tax.gov.ae/en/media.centre/news/fta.participates.in.7th.uae.national.sports.day.with.a.full.agenda.of.athletic.activities.aspx

Dubai – March 16, 2022:

National Sports Day is held every year in the UAE with the participation of sporting enthusiasts in athletic, physical, and heritage activities the entire day. This national occasion is organized in line with directives from His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

The Federal Tax Authority (FTA) participated in the 7th UAE National Sports Day under the theme ‘The UAE Unites Us’ with an agenda of athletic activities, that included bicycle racing, walking, and other sports activities. Prizes were distributed to the winners and participants.

The activities helped promote a culture of sports and brought in positive vibes among FTA staff. The Authority encouraged its employees to make sports a part of their daily lives, to support both their physical and mental health.

FTA Director General His Excellency Khalid Ali Al Bustani said that the sports events reported significant participation from their employees who exhibited great enthusiasm and a sporting spirit.

View more.

Date: 11 Mar, 2022

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

Muscat – March 11, 2022:

As part of its effort to improve the efficiency of the tax system, Oman Tax Authority (OTA) signs the Convention on the Provision of Tax Stamp Services. The Authority signed an agreement to provide digital stamp services with De la Rue International, the world’s leading tax stamp printing company that specializes in the design of distinctive tax stamps.

The project of printing high-security digital stamps on selective products will be implemented in several phases gradually in the Sultanate of Oman. Each stage will target one type of selective goods traded in markets and the first phase is likely to begin in April for the targeted tobacco and cigarettes products. The last phase will involve the determination of the date for non-acceptance of goods without stamps.

Read more.

Date: 04 Mar, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/الدليل-الإرشادي-لضريبة-القيمة-المضافة-الأشخاص-المرتبطون.pdf

Muscat – March 4, 2022:

The Oman Tax Authority (OTA) released VAT Guide for Associated (Related) Persons including VAT groups in Arabic.

Guidance is provided on the formation of tax groups for VAT. Associated persons may register as a tax group for VAT purposes if the following conditions are met:

• All persons are tax resident in Oman;
• All persons are legal persons;
• All persons are registered for VAT according to the law;
• One person (the parent entity), in or outside the group, must have control over all other persons in the tax group;
• No person is a member of another tax group;
• None of the persons are registered in a special regime zone.

Date: 28 Feb, 2022

External URL: https://www.khaleejtimes.com/economy/is-uae-planning-to-introduce-income-tax-minister-clarifies

Dubai – February 28, 2022:

UAE’s Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi clarified that income tax is not on the table in an interview with Bloomberg.

The interview comes in the wake of the UAE’s MoF’s decision to introduce corporate tax on business profits from financial years starting on or after June 1, 2023. With a standard statutory tax rate of nine percent and a zero percent for taxable profits up to AED 375,000 to support small businesses and startups, the UAE corporate tax regime will be amongst the most competitive in the world. The minister opined that corporate tax was received positively by the country’s corporate sector as the tax will replace most of the fees companies are currently paying.

Based on the MoF’s Corporate Tax FAQs, individuals will also be subject to corporate tax when they conduct business in the UAE under a commercial license 1.e under a freelance license).

Date: 18 Feb, 2022

External URL: https://www.tax.gov.ae/en/press-releases/Key-Initiatives-Showcased-During-UAE-Innovates-2022

Dubai – February 18, 2022:

The Federal Tax Authority (FTA) has launched several initiatives set to take place across the UAE throughout February. The ‘UAE Innovates 2022’ initiative would promote a culture of government innovation by engaging the community in ambitious projects to design future experiences and develop initiatives that support the government’s plans to shape a better future, in collaboration with individuals and entities.

His Excellency Khalid Al Bustani, Director-General, FTA, asserted the Authority’s commitment to participating in the annual activities of the ‘UAE Innovates’ initiative. Through its participation, FTA encourages innovation and engages the public in the digital transformation process and the National Innovation Strategy, which aims to position the UAE among the most innovative countries around the world.

FTA is participating in the UAE Innovates Exhibition at the Festival Garden in Expo 2020 Dubai as part of the Innovation Month. The FTA team will introduce visitors to its innovative digital and electronic system for the Tourist VAT Refund Scheme to process requests easily and on time. The system reflects the UAE’s ongoing efforts to support the tourism sector and position itself as an ideal tourist destination.

Read more.

Date: 17 Feb, 2022

External URL: https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Policies/DCP53_2022.pdf

Dubai – February 17, 2022:

Dubai Customs released a new Policy i.e Customs policy no. 53/2022 on client registration for acquiring customs codes.

This Policy comes into effect from the date of issuance and supersedes any conflicting provisions. Earlier, Customs policy no. 28/2009 dated 22 October 2009 detailed the client registration-related matters.

The new policy regulates the client registration procedure for obtaining special identification codes and simplifies the transactions with Dubai Customs. This enables clients to adhere to stipulations laid for different custom transactions.

Date: 09 Feb, 2022

External URL: https://zatca.gov.sa/ar/HelpCenter/guidelines/Documents/Reclassifies_VAT_Penalties.pdf

Riyadh – February 9, 2022:

The Zakat, Tax and Customs Authority (ZATCA) published an announcement on its website regarding penalties for violations of VAT rules. However, it is only available in Arabic.

View the reclassification of VAT Penalties by ZATCA.

As part of the announcement, the previous fines have been amended ushering in a more cooperative and educational approach for penalizing taxpayers for their non-compliance with VAT rules than previously.

Read more.

Date: 04 Feb, 2022

Manama – February 4, 2022:

From January 1 2022, the standard rate of value-added tax (VAT) in Bahrain increased to 10 percent from the previous rate of 5 percent.

Under the new transitional rule, supplies made during 2022 pursuant to a contract signed on or before 23 December 2021 are subject to VAT at a rate of 5 percent until the contract expires, is renewed or is amended (whichever is earliest).

For further clarifications the National Bureau for Revenue (NBR) has released a detailed manual in English for taxpayers:

• VAT return filing manual for tax periods in 2022 (Filing payment and returns).
• A simplified VAT return filing manual applicable for tax periods in 2022.

For addressing any of your queries related to the new manual, get in touch out tax experts.

Date: 01 Feb, 2022

External URL: https://www.khaleejtimes.com/uae/uae-announces-new-tax-to-go-into-effect-next-year

Dubai – February 1, 2022:

The Ministry of Finance has announced that the UAE will introduce a federal corporate tax on business profits effective for financial years starting on or after June 1, 2023. With a standard statutory tax rate of 9 percent, the UAE corporate tax regime will be amongst the most competitive in the world.

The Ministry also confirmed that there will be no tax on profits of up to AED 375,000, in a move to support small businesses and startups.

The corporate tax will apply to all businesses and commercial activities alike, except for the extraction of natural resources which will remain subject to Emirate level corporate taxation.

No corporate tax will apply on personal income from employment, real estate and other investments, or any other income earned by individuals that do not arise from business or other forms of commercial activity.

UAE businesses will be given sufficient time to prepare for the introduction of corporate tax. The Ministry of Finance will issue further information on the new tax regime toward the middle of the year to help businesses get ready.

Read more.

Date: 31 Jan, 2022

External URL: https://www.dohanews.co/qatar-introduces-new-passengers-tax-at-its-airports/

Doha – January 31, 2022:

Qatar Civil Aviation Authority announced that passengers arriving, leaving or transiting through Hamad International Airport will now have to pay extra service tax starting from April 1, 2022.

An official notice was sent to all airline managers and travel agents which included the amendment of the current fees and the introduction of new security and air freight infrastructure fees at Qatari airports.

The new tax will be applied to all tickets issued on or after February 1, 2022 and will be officially implemented from 12am Doha time on April 1, 2022.

To know more details about the fees to be paid by passengers click here.

Date: 27 Jan, 2022

External URL: https://www.tax.gov.ae/en/press-releases/Federal-Tax-Authority-One-Year-Extension-on-Grace-Period-to-Benefit

Dubai – January 27, 2022:

The UAE’s Federal Tax Authority (FTA) extended the grace period to benefit from re-determination of administrative penalties on violating tax laws until December 31, 2022.

The reduced administrative penalties amount to 30 percent of the total unpaid penalties that were imposed before June 28, 2021. The authority further elaborated that tax registrants who were not able to benefit from redetermination by December 31, 2021, can benefit until December 31, 2022.

The Cabinet decision provided an opportunity for the business sector to benefit from the reduction of administrative penalties. The decision will reduce burdens on business sectors and enhance their abilities to contribute more to the growth of the national economy. The decision is also a part of the FTA’s goal to provide a legislative environment that encourages a high level of tax compliance.

Read more.

Date: 24 Jan, 2022

External URL: https://timesofoman.com/article/111098-muscat-municipality-to-reintroduce-municipal-tax

Muscat – January 24, 2022:

Muscat Municipality has issued a circular to business owners stating that the tax on all commercial activities and establishments, which were stopped as part of the economic stimulus package, will be reactivated from January 1, 2022.

The economic stimulus plan aimed at supporting the recovery efforts to mitigate the economic repercussions induced by Covid-19, which included an exemption from the municipal tax for hotel establishments, tourist restaurants, amusement centers and parks until the end of 2021.

Read more.

Date: 18 Jan, 2022

External URL: https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN15_2021.pdf

Dubai – January 18, 2022:

Government of Dubai and the Dubai Customs Authority issues Customs notice No. (15/2021) for e-commerce companies in the region.

It applies to commercial companies, including SMEs, free-zone companies, logistics companies, and customs warehouses that provide online retail and selling services for goods and products through e-commerce channels. Both B2C and B2B transactions are covered in the notice.

The notice has been issued for the purpose of simplifying and facilitating customs procedures and regulating the movement of goods through cross-border e-commerce channels.

Date: 17 Jan, 2022

External URL: https://www.arabianbusiness.com/gcc/kuwait/kuwaits-mps-strongly-refuse-imposing-taxes-to-address-budget-deficit

Kuwait- January 17, 2022:

During the National Assembly’s session, MPs in Kuwait have strongly refused economic reforms that would involve imposing taxes on citizens in the country to address the budget deficit.

According to a state-run news agency, a number of politicians called for solutions to address the country’s budget deficit –A record KD10.8 billion ($36bn) deficit in 2020, up 175 percent from a year earlier.

During the session, the MPs affirmed the need to allow the oil sector to rely on other oil-related substances to create multi-income sources. However, it was emphasized that this solution shouldn’t be touching upon taxation.

Presently, Kuwait does not impose income tax on income earned by individuals. However, companies in the region pay 4.5 percent of their net profits, that includes zakat and labor support and a contribution to the Foundation for the Advancement of Sciences.

View more.

Date: 12 Jan, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/VAT-Registration-procedures-for-non-resident-applicants-1.pdf

Muscat- January 12, 2022:

The Oman Tax Authority (OTA) has published a guide on VAT Registration procedures for non-resident applicants.

The guide explains the relevant provisions of the VAT Law and the VAT Regulations regarding the VAT obligations of non-resident people. This includes guidance for non-residents to register with the OTA when the conditions for registration are met. This forms the date from which they are obliged to pay the tax in accordance with the provisions of this Law.

The person who has no place of residence in the Sultanate may appoint a responsible person or tax agent (representative) in Oman, for the specific procedures.

View more.

Date: 07 Jan, 2022

External URL: http://www.allaboutvat.com/wp-content/uploads/2022-01-06-VAT-Taxayer-guide-Oil-and-Gas.pdf

Muscat- January 07, 2021:

Oman Taxation Authority (“OTA”) has issued a guide to provide additional interpretation and guidance for the application of the VAT Law and its corresponding executive regulations to the Oil and Gas Industry in Oman. The guide throws clarification on important practical aspects for the industry in Oman.

The aspects include the applicability of VAT for upstream, midstream, and downstream activities performed by the sub-contractors, contractors, and operators. Each of these areas has been elaborately discussed through the guide. It also includes the scope of zero-rating under Article 93 of the Executive Regulations, which is one of the crucial areas for businesses operating within the sector.

Click here to view the detailed guide – VAT Taxpayer Guide- Oil and Gas.

For more information, please contact Oman Tax Authority:
P.O. Box: 285, P.C. 100, Muscat
Hours: Sunday – Thursday | 07:30-14:30
Telephone: +968 2474 6996
Email: info@taxoman.gov.om

Date: 04 Jan, 2022

External URL: https://www.lloc.gov.bh/HTM/K3321.htm

Manama- January 04, 2022:

Bahrain has published Law 33 of 2021 in the Official Gazette, which provides for the increase in the standard VAT rate from 5 percent to 10 percent with effect from January 1, 2022.

Article 4 of the law includes a transitional provision for supplies under a contract concluded prior to 1 January 2022. This includes that the 5% rate will continue to apply for such contracted supplies until the contract expires, is amended or is renewed or lapsed post a year after the law is effective, whichever is earlier.

Date: 03 Jan, 2022

External URL: https://www.nbr.gov.bh/vat_faqs/17

Manama- January 3, 2022:

NBR (National Bureau for Revenue) has released a set of FAQS on the transitional measures related to the VAT rate increase in Bahrain. The basic percentage of value-added tax has been changed from 5 percent to 10 percent effective from January 1, 2022.

Supplies of goods or services made on or after January 1, 2022, will be subject to 10% value-added unless the supply is zero-rated, exempt or falls within the transitional provisions set out below.

Date: 23 Dec, 2021

External URL: https://www.newsofbahrain.com/bahrain/77327.html

Manama- December 23, 2021:

Bahrain Shura Council, the upper house of the National Assembly, approves the draft law to double VAT to 10 percent in the country.

The Gulf’s smallest economy is seeking ways to cut spending and bring its budget back to balance in 2024.

Besides approving the VAT bill, MPs in Bahrain approved increasing social welfare and support allowance by 10 percent. Under the new social welfare system to be implemented from January 1, a low-income Bahraini would receive BD77 monthly, a couple would receive BD132 up from the current BD120, and each child BD25 (unchanged) but with the BD150 cap removed for the total given to a family.

Read more.

Date: 21 Dec, 2021

External URL: https://www.wam.ae/en/details/1395303004260

UAE- December 21, 2021:

The Federal Tax Authority (FTA) organized field tours to the ‘Self-Service Kiosks’ in Dubai International Airport to ensure the system’s readiness. (As part of the VAT Refund Scheme for Tourists)

The tour was arranged in line with FTA’s strategy to offer services that meet taxpayers’ aspirations and its commitment to abiding by Cabinet Decision No. (41) of 2018 on Introducing the Tax Refunds for Tourists Scheme.

During the tour, FTA Director-General Khalid Ali Al Bustani claimed that the services simplify VAT refund requests for tourists on purchases they make during their stay in the UAE. The streamlined procedure identifies taxes eligible for refunds, verifies purchased items are with the tourist and facilitates tax recovery.

Read more.

Date: 16 Dec, 2021

External URL: https://www.tax.gov.ae/-/media/Files/EN/PDF/Guides/Reconsiderations-User-GuideEnglishV10-17-11-2021.pdf

UAE- December 16, 2021:

The FTA of UAE has issued a Reconsiderations User guide for both Registered and Non-registered users.

The guide in detail explains in detail the process to be followed for filing of reconsideration form. It helps taxpayers navigate the e-Services portal from a systems perspective, to successfully complete the filling of the Reconsiderations form. It is designed to help you:

• Create an e-Services account with the FTA.
• Provide accurate answers to the questions on the Reconsideration form by explaining the information required.
• Understand the icons and symbols you see while completing the form.

It is pertinent to note that since 19 November 2021 , Reconsideration requests service are available on the e-services portal instead of FTA’s website.

Date: 15 Dec, 2021

External URL: https://gulfnews.com/world/gulf/oman/oman-confirms-no-plans-to-increase-vat-1.84370035

Muscat- December 15, 2021:

Oman’s Minister of Finance Sultan bin Salim Al Habsi has confirmed that the state will not follow Saudi Arabia and Bahrain on VAT rise. Omani Ministry declared that the standard 5 percent Value Added Tax (VAT) rate continues in 2022. Al Habsi affirmed ‘We have seen some countries increase the VAT tariff but our government has no intention to increase the current VAT.’

This move comes despite neighboring countries Saudi Arabia (15%) and Bahrain (10%) both raising VAT from the original Gulf Coordination Council launch rate of 5%. Of the six GCC states, Kuwait and Qatar are yet to implement VAT as part of the agreed VAT and Customs Union.

Read more.

Date: 14 Dec, 2021

External URL: https://www.tax.gov.ae/-/media/Files/FTA/links/Public-Clarification/VATP028---Input-Tax-Recovery---Mobile-Phones-Airtime-and-Data---29-11-2021.pdf

UAE- December 14, 2021:

Due to COVID-19, there has been an increase in work-from-home arrangements, resulting in some instances where employers pay for Phones, Airtime, and Packages’ expenses to allow employees to perform their roles remotely. Many businesses enter into agreements with telecommunication service providers to make mobile phones, airtime (call minutes) and data packages available to their employees to perform their roles outside office hours or at locations away from the office.

In this regard, the UAE Federal Tax Authority (FTA) published a new VAT Public Clarification (VATP028) that provides guidance on the application of the VAT legislation in respect of the recovery of input tax incurred on Phones, Airtime, and Packages acquired for business use.

Date: 13 Dec, 2021

External URL: http://www.allaboutvat.com/wp-content/uploads/Guided-to-developed-FATOORA-compliant-QR-code.pdf

Riyadh- December 13, 2021:

The Zakat, Tax and Customs Authority (ZATCA) published a guide that gives a technical explanation on how to develop a Fatoora compliant QR code for E-invoices. In accordance with the E-invoicing resolutions issued by ZATCA, all simplified invoices must contain a QR code containing certain prescribed information.

Electronic Invoicing is a procedure that aims to convert the issuance of paper invoices into an electronic process that allows the exchange and processing of invoices, credit and debit notes in a structured digital format between the buyer and seller. (View the E-invoicing guidelines)

View the guide on how to develop a Fatoora compliant QR code .

Read more: The first phase of mandatory electronic invoicing (FATOORAH) regulations have come into force in Saudi Arabia on December 4, 2021.

Date: 09 Dec, 2021

External URL: https://www.khaleejtimes.com/economy/bahrain-to-double-value-added-tax-from-5-to-10

Manama- December 9, 2021:

The Gulf’s smallest economy Bahrain has announced the doubling of value-added tax (VAT) to 10 percent from 5 percent in 2022. The reform is part of its plans to fix the Gulf state’s finances.

The VAT increase likely to start next year could contribute receipts of about 3 percent of the gross domestic product in the next few years, up from about 1.7 percent this year, a rating agency has estimated.

“The successful approval of the VAT increase by parliament is a critical milestone within our economic recovery plans and our aim of achieving a balanced budget by 2024,” the ministry of finance said.

Saudi Arabia tripled its VAT rate to 15 percent last year to bolster state revenue when oil prices slumped. The UAE and Oman imposed a 5 percent VAT under a common 2018 framework by the GCC. Kuwait and Qatar have yet to implement the tax.

View more…

Date: 05 Dec, 2021

External URL: https://saudigazette.com.sa/article/614322/SAUDI-ARABIA/E-invoicing-in-Saudi-Arabia-comes-into-force

Riyadh- December 5, 2021:

The first phase of mandatory electronic invoicing (FATOORAH) regulations have come into force in Saudi Arabia on December 4, 2021. FATOORAH project is expected to produce a major positive impact on the Saudi economy by bringing down hidden economic transactions and promoting fair competition.

Read more- ZATCA announces Penalties for E-Invoicing Violation

The first phase of E-invoicing means the complete cessation of using and issuing handwritten invoices. Now onwards, all tax payers are obliged to generate electronic invoices using compliant e-invoicing systems. Manual and hand-written invoices through text editors or number analysis applications will no longer be valid.

The authority lauded its efforts for spreading enhanced awareness amongst taxpayers and their readiness before the implementation date. This enabled private sector establishments to prepare well with the requirements for complying with E-invoicing.

The ZATCA has launched an E-Invoicing detailed guide explaining pertaining terms, categories subject to the E-invoicing regulations and types of transactions.

The second phase of e-invoicing will be implemented on January 1, 2023, to establish integration between E-Systems of taxpayers and the authority’s regulations

Read more.

Date: 29 Nov, 2021

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 .

Date: 28 Nov, 2021

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)

Read more.

Date: 24 Nov, 2021

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 :

Read more.

Date: 16 Nov, 2021

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.

Date: 14 Nov, 2021

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.

Read more.

Date: 10 Nov, 2021

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.

Read More.

Date: 04 Nov, 2021

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.

View More.

Date: 03 Nov, 2021

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.

Date: 27 Oct, 2021

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.

Date: 26 Oct, 2021

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.”

Read more.

Date: 25 Oct, 2021

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.

Date: 24 Oct, 2021

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.

Read more.

Date: 12 Oct, 2021

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.

Read more.

Date: 07 Oct, 2021

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

Read more.

Date: 05 Oct, 2021

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.

Date: 03 Oct, 2021

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.

Date: 25 Sep, 2021

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.

Date: 24 Sep, 2021

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.

Date: 23 Sep, 2021

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.

Date: 15 Sep, 2021

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.

Read more.

Date: 13 Sep, 2021

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.

Read more.

Date: 12 Sep, 2021

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.

View more.

Date: 06 Sep, 2021

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.

Date: 05 Sep, 2021

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.

Date: 03 Sep, 2021

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.

Date: 02 Sep, 2021

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.

Date: 26 Aug, 2021

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.

Date: 24 Aug, 2021

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.

Date: 23 Aug, 2021

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.

Date: 19 Aug, 2021

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.

Date: 11 Aug, 2021

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.

Date: 10 Aug, 2021

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.

Date: 09 Aug, 2021

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.

Date: 08 Aug, 2021

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.

Date: 03 Aug, 2021

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.

Date: 02 Aug, 2021

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.

Date: 26 Jul, 2021

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.

Date: 19 Jul, 2021

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:

Click here to view more.

Date: 17 Jul, 2021

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.

Date: 14 Jul, 2021

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.

Date: 11 Jul, 2021

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.

Date: 07 Jul, 2021

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

Date: 05 Jul, 2021

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…

Date: 03 Jul, 2021

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.

Date: 02 Jul, 2021

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.

Date: 01 Jul, 2021

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.

Date: 29 Jun, 2021

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.

Date: 28 Jun, 2021

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.

Date: 27 Jun, 2021

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

Date: 25 Jun, 2021

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.

Date: 24 Jun, 2021

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:

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.

Date: 22 Jun, 2021

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.

Date: 17 Jun, 2021

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.

Date: 16 Jun, 2021

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

Click here to read more.

Date: 10 Jun, 2021

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.

• Cabinet Decision No. 49 of 2021
• Public Clarification TAXP001 – Amendment to the Penalties Regime
• Public Clarification TAXP002 – Redetermination of Penalties

Date: 06 Jun, 2021

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.

Click here to read more.

Date: 30 May, 2021

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.

Date: 29 May, 2021

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.

Click here to read more.

For any queries you may contact our Tax Experts.

Date: 28 May, 2021

External URL: https://www.tax.gov.ae/press-releases/Any-person-or-group-has-the-right-to-apply-for-a-reduction

UAE- May 28, 2021:

The Federal Tax Authority (FTA) has announced that any person or group has the right to apply to the FTA to reduce or exempt them from the penalty imposed for the violation of the provisions of tax legislation, provided that there is an excuse acceptable to the FTA. It must supported by evidence that justifies the existence of the excuse and the violation that led to the imposition of administrative penalties.

The FTA clarified that according to Cabinet Decision No. 51 of 2021 on amending the Executive Regulation of Federal Law on Tax Procedures, any person or group who is found to have violated the provisions of the tax law may submit such a request to the FTA to reduce or exempt from the penalties in accordance with a set of conditions. The FTA must be notified of the request within 40 business days from the end of the acceptable excuse. Also, the person must prove that the violation has been corrected, and the application for exemption or reduction is submitted in accordance with the form specified by the FTA.

The FTA confirmed that, according to the amendments that came into effect on 28 April 2021, an excuse shall not be considered acceptable if the act that led to the violation was deliberate. An excuse can only be deemed acceptable based on a decision made by a tripartite committee formed by the Director-General of the FTA. This committee will study the excuse and accept or reject it, and will issue its decision to reduce or exempt administrative penalties within 40 business days from the date of receiving the application. Applicants shall be notified of this decision within 10 business days from the date of its issuance.

Click here to read more.

Date: 25 May, 2021

External URL: https://jis.gov.jm/cabinet-approves-double-taxation-agreement-between-uae-and-jamaica/

UAE- May 25, 2021:

Cabinet has given approval for the Double Taxation Agreement between the United Arab Emirates (UAE) and Jamaica. This would eliminate double taxation with respect to taxes on income and the prevention of tax evasion and avoidance.

Jamaica Minister of Education, Youth and Information, Hon. Fayval Williams disclosed the update on May 19 during the post-cabinet press briefing at Jamaica House in St. Andrew.

She said the general objectives of the bilateral tax agreement are to provide full protection of taxpayers against double taxation and to allow for the free flow of international trade or cross-border transactions and the transfer of technology. It will prevent discrimination between taxpayers in the international field and provide a reasonable element of legal and fiscal certainty as a framework within which international operations could be pursued. She noted that the agreement fosters cooperation between the tax authorities in the UAE and Jamaica, enabling them to execute their duties more effectively.

Click here to read more.

Date: 24 May, 2021

External URL: https://www.tax.gov.ae/-/media/Files/EN/PDF/Guides/VAT-Payment-for-Commercial-Property-Buyers-User-GuideEnglishv20-06-05-2021.pdf

Dubai- May 24, 2021:

FTA releases a VAT Payment User Guide for Commercial Property Buyers.

The guide is prepared to help persons who are buying or selling a commercial property which is subject to VAT in the UAE to complete their VAT payment on the FTA’s eServices portal. This process will be completed as a miscellaneous payment.

Kindly note that this guide is only applicable to sales of commercial property which are subject to VAT at 5%.

Therefore, it does not apply to:

• Any sales or leases of residential property;
• Leases of commercial property; and
• The sale of a commercial property with the benefit of sitting tenants to a buyer who is a Taxable Person which qualifies as the transfer of a business.

Click here to view the guide.

For any queries you may contact our Tax Experts.

Date: 16 May, 2021

External URL: https://www.khaleejtimes.com/coronavirus-pandemic/india-covid-19-crisis-uae-expats-can-send-relief-material-to-india-without-tax

Dubai- May 16, 2021:

The UAE expatriates can send Covid-related relief material to India without paying customs duty. The Ministry of Finance issued a notification on May3 exempting customs duty, integrated goods and services tax (IGST) and/or health cess on the import of a number of relief materials till June 30, 2021.

The government at the centre said it received a number of representations from charitable organizations, corporate entities, and other associations outside India seeking exemption from IGST on the import of Covid-19 relief material donated or received free of cost from outside India for free distribution. The relief items are already exempted from customs duty till June 2021.

Earlier, the government had also exempted the basic customs duty and health cess on certain Covid-19 related supplies, namely Remdesivir injections or active pharmaceutical ingredients (API), Beta Cyclodextrin and inflammatory diagnostic kits till October 31 and medical grade oxygen, cryogenic transport tanks, other oxygen therapy-related equipment and vaccines till July 31. The new ruling is beneficial for local community groups, businesses and individual expatriates who are keen to supply relief materials to India.

Click here to read more.

Date: 10 May, 2021

External URL: https://www.tax.gov.ae/-/media/Files/FTA/links/Legislation/Excise-tax/FTA-Decision-No-1-of-2021-on-the-mechanism-of-calculating-the-ARSP-of-Excise-Goods.pdf

Dubai- May 10, 2021:

In order to calculate the average retail selling price of the excise goods in the market, the FTA has released a decision approved by the Board of Directors’ at its 15th meeting held on 20 April 2021.

For the purposes of Clause 2 of Article 14 of Cabinet Decision No. 52 of 2019, a Taxable Person shall undertake the procedures outlined in the document for the purpose of identifying the Designated Retail Selling Price as per the sequence mentioned.

Click here to view the Federal Tax Authority Decision No. 1 of 2021 (Unofficial translation) – Issued on 28th April 2021.

Date: 09 May, 2021

External URL: https://www.khaleejtimes.com/news/government/covid-impact-uae-reduces-penalties-on-vat-excise-tax

Dubai- May 9, 2021:

The UAE has reduced penalties on value-added tax (VAT) and excise tax in order to help companies and individuals better cope with the impact of the Covid-19 pandemic. According to newly-released Cabinet Decision No. 49 of 2021, tax payers who currently have penalties pending can see those reduced to 30 per cent, provided they settle them before December 31, 2021.

Going forward, late payment penalties will be reduced to four per cent per month, a substantial reduction from one per cent per day while an overall cap stays at 300 per cent.

The new provisions will be applicable 60 days as from April 28, 2021.

For more information click here.

For any additional queries contact our tax experts.

READ ALSO: THE TOP 8 LIST OF VAT FINES AND PENALTIES LEVIED BY FTA.

Date: 08 May, 2021

External URL: https://www.tax.gov.ae/-/media/Files/FTA/links/Public-Clarification/VATP026---Sole-Establishments---Legal-and-Natural---05-05-2021.pdf

Dubai- May 8, 2021:

The FTA (Federal Tax Authority ) issued guidance on the value added tax (VAT) registration for sole establishments and sole proprietorships.

A natural or legal person may own a number of sole establishments. There has been uncertainty on whether each sole establishment needs to obtain a separate VAT registration or whether all such establishments should be included under one VAT registration. The Public Clarification released clarifies the VAT registration obligations of a person in respect of its sole establishments.

A person owning a number of sole establishments should obtain only one VAT registration for all its sole establishments, and it is not permissible to register each sole establishment separately for VAT.

This does not apply to a one-person company LLC or other similar legal entities that are seen as distinct and separate legal persons from their owners.

The FTA will review in certain cases the VAT registrations by taxable persons in respect of sole establishments and will inform them of the corrective steps to be taken, if any.

Date: 06 May, 2021

Dubai- May 6, 2021:

The Jebel Ali Free Zone (JAFZA) released revised closing dates for the submission of Notification and Economic Substance Report (ESR) by businesses under the Economic Substance Regulations. The Regulations require UAE onshore and free zone companies and certain other business forms that carry out relevant activities to submit the annual Notification form and ESR to their relevant regulatory authority.

JAFZA has extended these deadlines for firms falling under its purview. The revised deadlines are six months after the financial year-end for the Notification Form and 12 months after the financial year-end for ESR. However, business are requested to file documents on the portal of the Ministry of Finance as soon as possible and not wait until the deadline, to avoid any compliance penalties and fines.

If you require advice on document submissions or other compliance with ESR regulations, you may get in touch with our tax experts.

Financial year-end	Notification filing deadline	ESR filing deadline
March 31, 2020	January 31, 2021 (extended deadline)	March 31, 2021
April 30, 2020	January 31, 2021 (extended deadline)	April 30, 2021
May 31, 2020	January 31, 2021 (extended deadline)	May 31, 2021
June 30, 2020	January 31, 2021 (extended deadline)	June 30, 2021
July 31, 2020	January 31, 2021	July 31, 2021
August 31, 2020	February 28, 2021	August 31, 2021
September 30, 2020	March 31, 2021	September 30, 2021
October 31, 2020	April 30, 2021	October 31, 2021
November 30, 2020	May 31, 2021	November 30, 2021
December 31, 2020	June 30, 2021	December 31, 2021
January 31, 2021	July 31, 2021	January 31, 2022
February 28, 2021	August 31, 2021	February 28, 2022
March 31, 2021	September 30, 2021	March 31, 2022
April 30, 2021	October 31, 2021	April 30, 2022
May 31, 2021	November 30, 2021	May 31, 2022
June 30, 2021	December 31, 2021	July 31, 2022

Date: 06 May, 2021

External URL: https://www.nbr.gov.bh/publications/view/VAT_Agent_VAT_Representative_Guide

Bahrain- May 6, 2021:

National Bureau for Revenue (NBR) in Bahrain published a guide in April 2021 on VAT agent or VAT representative.

A VAT agent is a person who is authorized by the NBR to act as an agent on behalf of a VAT payer in his name and on his behalf in relation to the VAT payer’s compliance obligations. It is a voluntary appointment by the tax payer subject to the agent being authorized by NBR.

Non-resident VAT payers who are obliged to register for VAT in Bahrain have the option to appoint a VAT representative. A VAT representative replaces the VAT payer and becomes responsible for all the VAT payer’s obligations towards the NBR.

The VAT Agent / VAT Representative Guide provides guidance and further clarification to those who would like to become a VAT Agent or Representative in Bahrain and the the criteria that must be met. Any person who is interested in becoming a VAT agent or VAT representative should go through this Guide to understand the conditions and the procedure that must be followed.

The guide provides an overview of

• The requirements for obtaining NBR’s approval for getting registered as VAT agent/representative.
• Rules and procedures for VAT payer to appoint a VAT agent/representative.

For any queries reach out to our tax experts.

Date: 04 May, 2021

External URL: https://www.khaleejtimes.com/region/mena/saudi-arabia-to-reconsider-vat-after-achieving-economic-objectives

Riyadh- May 4, 2021:

The Kingdom of Saudi Arabia will reconsider value-added tax (VAT) after it has achieved certain objectives related to its economy and economic growth, a senior official has said.

The decision to increase VAT from 5 % to 15 % from July 1, 2020 was taken by the Saudi government in response to the economic impact of Covid-19 and the decline in revenues from lower oil prices. The Minister of Finance Mohammed Al-Jadaan has said that tripling value-added tax (VAT) to 15% was the best among the tough choices the government took during 2020.

He affirmed that taxes are an essential part of non-oil-dependent countries, indicating that the government’s goal is to expand the economy to reduce the economic burden, off the shoulders of their nationals or the private sector.

“Saudi Arabia will reconsider the value-added tax upon achieving certain objectives, such as the Kingdom’s gross domestic product (GDP) growth, economic broadening, and a steady rise in oil price,” Al Jadaan said.

Click here to read more.

Date: 04 May, 2021

External URL: https://opaz.gov.om/en/news/2021/sezad-and-free-zones-in-salalah-sohar-and-al-mazunah-are-classified-special-zones

Muscat- May 5, 2021:

SEZAD and free zones in Salalah , Sohar, and Al Mazunah are classified as Special Zones and the supply and transportation of goods and services are zero-rated of VAT.

The Public Authority for Special Economic Zones and Free Zones ( OPAZ ) said, ‘The Special Economic Zone at Duqm ( SEZAD ) and the free zones in Salalah , Sohar and Al Mazunah are classified as Special Zones in accordance with the provisions of Article ( 102 ) of the Executive Regulations of the Value Added Tax ( VAT ), issued in the Decision No ( 2021/53 ). This announcement comes post the coordination with the Tax Authority in regards to the implementation of VAT.’

In accordance with the conditions specified in the Article ( 103 ) of the regulations, all these special zones are subject to 0 % tax.

Therefore, OPAZ calls on all companies, enterprises, businesses and establishments operating in these zones to comply with the conditions stipulated in the VAT Executive Regulations, until the Tax Authority of Oman publishes detailed procedures for the purposes of applying VAT at a rate of zero percent in the Special Zones. These conditions include VAT Registration and VAT Administration.

Date: 03 May, 2021

External URL: https://wam.ae/en/details/1395302931770

Abu Dhabi- May 3, 2021:

Five of the major international institutions specialized in assessing competitiveness have ranked the UAE among the top 10 in the world in 28 indicators of competitiveness in the financial and tax sector.

This was highlighted by a report by the Federal Competitiveness and Statistics Centre (FCSC), which documented the rankings of the IMD World Competitiveness Yearbook, the Legatum Prosperity Index, the World Economic Forum’s Travel and Tourism Competitiveness Report, the Global Talent Competitiveness Index (GTCI) and the Global Competitiveness Index 4.0. The report states that the UAE was ranked first in the Real Personal Taxes Index, the Collected Personal Income Taxes Index, the Low Tax Evasion Rate Index, the Collected Indirect Tax Revenues Index, the Lack of Wastefulness in Government Spending Index and the Best Time to File Tax Returns Index.

The UAE was also ranked second globally in the areas of corporate tax collection, real increase in government expenditures, and collection of capital and real estate taxes, while it was ranked third in the areas of intergovernmental transfers, local central governmental debt and rate of low consumption taxes.

In early January 2018, the UAE implemented VAT at 5% on most goods and services that are supplied at every stage of the supply chain. Prior to that in 2017, an excise tax was applied to restrict the consumption of substances that affect health such as tobacco products and energy drinks.

At a time when many countries of the world tend to increase taxes on personal and corporate profits, the UAE ranked first in the world in the absence of income taxes and low rates of tax evasion which strengthens its eligibility to attract foreign investment.

Click here to view more.

Date: 02 May, 2021

External URL: https://www.tax.gov.ae/-/media/Files/EN/PDF/Guides/Real-Estate-Guide-VATGRE1---EN---19-04-2021.pdf

Dubai- May 2, 2021:

Federal Tax Authority (FTA) releases ‘Real Estate Guide‘ that throws guidance on the VAT treatment of supplies of real estate, as well as various common transactions which occur within the real estate sector. The purpose of the document is to provide guidance on how VAT affects businesses which operate within the real estate sector, as well as for owners or landlords of real estate.

This document is meant for owners of commercial and residential real estate, landlords making supplies of commercial or residential real estate, and businesses operating within the construction industry, or making supplies which relate to real estate. Property managers and owners’ associations may also find this guide useful.

Date: 29 Apr, 2021

External URL: https://gulfnews.com/world/gulf/saudi/saudi-arabia-has-no-plans-to-introduce-income-tax-crown-prince-mohammed-bin-salman-1.1619558916351

Riyadh- April 29, 2021:

Saudi Arabia has no plans to introduce income tax and the 15 percent VAT rate is a temporary decision for 5 years, Crown Prince Mohammed Bin Salman said in a TV interview. He also spoke on plans to eventually reduce the VAT rate, iterating that the move to increase the rate to 15 percent was a painful decision that he had to undertake.

In a wide-ranging TV interview to mark the fifth anniversary of the Saudi Vision 2030 strategy, the Crown Prince spoke about the Kingdom’s economic plans, developments and achievements made since the launch of Vision 2030, which aims to diversify the Kingdom’s economy without reliance on oil.

The Crown Prince explained figures related to housing policies, legislation and the private sector’s contribution to the Kingdom’s economy, reviewing many economic figures, most notably the growth reflected in the Saudi stock market index.

Speaking of the future, Mohammed bin Salman said “We would launch vision 2040 after achievement of goals of vision 2030. He also revealed that the Kingdom is in discussions to sell 1 percent of state oil firm Saudi Aramco to a leading global energy company. Aramco previously sold a sliver of its shares on the Saudi bourse in December 2019, generating $29.4 billion in the world’s biggest initial public offering.

Click here to read more.

Date: 28 Apr, 2021

External URL: http://wam.ae/en/details/1395302928924

Abu Dhabi- April 28, 2021:

Obaid Humaid Al Tayer, Minister of State for Financial Affairs, participated in the 113th meeting of the GCC Financial and Economic Cooperation Committee, held virtually on April 22, 2021 and discussed strengthening financial and economic cooperation among GCC countries.

The Committee discussed the recommendations submitted by the GCC Committee of Monetary Authorities and Central Banks Governors during the 76th meeting; the 25th meeting of GCC Customs Union Authority; and the Gulf Market Committee at its 30th and 31st meetings.

Also discussed were the minutes of the 8th meeting of Committee of Heads and Directors of Tax Administrations in the GCC States; the budget for supporting joint activities and programmes to develop youth work in the GCC countries; and the G20 Finance Track’s initiatives that can be issued to the GCC countries. That, in addition to the decisions of the 41st Session of GCC Supreme Council and the decisions of the 21st meeting of the GCC Ministerial Committee of following up the implementation of the GCC Joint Work Decisions.

The committee reviewed the GCC Supreme Council’s decision on agreeing on a system of linking payments in the GCC countries; discussing the programme on achieving economic unity among the GCC countries by 2025; and discussing the issues proposed to the International Monetary Fund (IMF), which they will study and submit at the joint meeting of the GCC Financial and Economic Cooperation Committee, the GCC Committee of Governors of Monetary Institutions and Central Banks and the Director-General of the IMF.

It also reviewed the latest developments related to the GCC-Takamul system, which is an electronic gateway for complaints and enquiries related to the Gulf Common Market. The committee praised its experimental launch among the GCC countries, and asked member countries to provide the data of those in charge of the system in the ministries of finance to the General Secretariat. The official launch of the system will take place during the next meeting of the GCC Financial and Economic Cooperation Committee in October 2021.

Click here to read more.

Date: 27 Apr, 2021

External URL: http://wam.ae/en/details/1395302930003

Abu Dhabi- April 27, 2021:

The Federal Tax Authority (FTA) has conducted more than 2,707 field inspection visits through 35 inspection campaigns across UAE markets in the first quarter of 2021 (Q1-21). This is as part of its ongoing efforts to protect consumer rights and increase the level of tax compliance.

FTA revealed that 256 VAT violations were detected and 248 violations with a total value of AED74 million during Q1.

FTA Director-General, Khalid Ali Al Bustani, confirmed that the sophisticated, cutting-edge tools adopted by the authority during inspections enable teams to accurately carry out their tasks through the latest field electronic mechanisms which correspond to best practices. This contributes to tightening controls on UAE markets to prevent the sale, circulation, and stockpiling of products that have not fulfilled their Excise or VAT obligations.

One of these tools is the mandatory marking of tobacco and tobacco related products which came into effect on 1st January, 2019. It specified the requirement to place Digital Tax Stamp (DTS) on cigarette packs and tobacco products, including water-pipe tobacco and electrically heated cigarettes, after registering them in the FTA database. Each DTS contains data that can be read with a special device to ensure all taxes due on the products have been paid.

Al Bustani added, “The tax compliance rates that have been observed in the outcomes of the inspection campaigns carried out in the first quarter of 2021 highlight the success of the authority’s oversight efforts carried out in cooperation with the competent entities.”

Click here to read more.

Date: 26 Apr, 2021

External URL: https://timesofoman.com/article/100566-companies-require-certificate-to-collect-vat-from-customers-in-oman

Muscat- April 26, 2021:

All companies in Oman need to have a certificate of registration from the Tax Authority before charging customers value added tax (VAT) for goods and services. Those who do add the 5 percent VAT charge to customers without this certificate would be subject to penalties under the law.

According to an official at the organization, this is for all commercial enterprises including SMEs that offer goods or services subject to VAT. If owners of establishments that are not registered with the authority purchase goods from suppliers who have imposed VAT on them, they must retain all of the invoices of goods received, inclusive of VAT prices. The business must then register with the Tax Authority to obtain the registration certificate and commit to submitting tax declarations on time added the official.

VAT at the rate of 5 percent came into effect in Oman on April 16, 2021. The first round for companies to register for VAT took place between February 1 and March 15, 2021.

Although this period has elapsed, companies are required to register themselves in the second duration- April 1 to May 31, 2021.

Click here to read more.

Date: 25 Apr, 2021

External URL: https://tms.taxoman.gov.om/portal/vat-tax

Muscat- April 25, 2021:

Oman Tax Authority has released guides on online registration and a list of most asked questions on VAT on their portal.

VAT Law

• VAT Law Translation

VAT Regulations

• VAT Regulation unofficial english version

Registration Forms

• VAT Registration Application – For Resident no CRN
• VAT Registration Application – For Non Resident

Manual Guides and FAQ’s

• VAT – Individuals – FAQ
• Information Sheet
• VAT – Business – FAQ
• Determining Food Items subject to Value Added Tax at Zero Rate
• Determining the Mandatory and Voluntary Registration Thresholds
• Determining the VAT Registration due Dates and Effective Dates
• VAT Transitional Registration Guide
• VAT Registration Manual Guide – Persons with CRN
• Guide on VAT Non Resident Application

Click here to view the guides.

Date: 22 Apr, 2021

External URL: https://www.tax.gov.ae/press-releases/FTA-holds--interactive-sessions-Tax-Clinic

Abu Dhabi – April 22, 2021:

The Federal Tax Authority (FTA) has held 3 interactive sessions via video conference, as part of the “Tax Clinic” initiative, a policy of direct communication with business sectors to promote tax awareness and avoid the most common errors while implementing tax procedures.

The awareness sessions held in Q1 of 2021focused on the small and medium enterprise (SME) sector. Teams of tax analysts and experts from the FTA’s Registration and Taxpayer Services Departments answered the inquiries of business representatives from across the emirates. The inquires were about tax registration and obligations. They also raised awareness of how to submit returns and pay tax dues without errors.

His Excellency Khalid Ali Al Bustani, Director-General of FTA, emphasized that the FTA is committed to ensure the security and safety of its employees and clients. It maintains constant interaction with those involved in the tax system by organizing webinars and meetings with its partners in the government/private sectors via video conference to adhere to social distancing norms imposed by Covid-19.

Click here to read more.

Date: 21 Apr, 2021

External URL: https://www.tax.gov.ae/press-releases/New-edition-of-the-Basic-Tax-Information-Bulletin

Abu Dhabi – April 21, 2021:

The Federal Tax Authority (FTA) has announced in its latest edition of the Basic Tax Information Bulletin that motor vehicle repairs and maintenance services provided within the UAE are subject to VAT at the standard rate of 5%. This applies even if the costs are charged to an entity based outside the UAE. The new edition mainly targets businesses in the automotive sector, including new car dealers, used car dealers, and servicing and parts’ suppliers.

With regard to repair services and parts provided under a warranty, the FTA clarified that VAT is applicable on the sale of vehicles under warranty and warranty packages purchased separately by the customer. Any subsequent supply of repair services and parts to the owner of the vehicle under warranty is not subject to VAT, provided no additional amount is charged in respect of the repair service or parts.

As per the Bulletin, businesses in the automotive sector making taxable supplies are eligible for the full recovery of input VAT, with the exception of blocked items such as certain entertainment services and purchased, leased, or rented motor vehicles that are available for personal use.

Click here to read more.

Date: 20 Apr, 2021

External URL: https://www.tax.gov.ae/press-releases/ISO-certifications-in-Information-Technology

Abu Dhabi – April 20, 2021:

The Federal Tax Authority (FTA) has received two certifications “ISO 20000” and “ISO 27001” in the information technology services sector: ISO certification for IT Service Management and ISO certification for IT Security Management.

His Excellency Khalid Ali Al Bustani, FTA Director-General, emphasized that the two new certifications enhance confidence in the FTA’s IT services and electronic systems. They are being continuously improved to ensure data protection and improve its services in all sectors. This is being accomplished through the application of a comprehensive quality methodology to complete operations and document them via an integrated system approach.

The Director-General affirmed that FTA since its establishment has been keen to provide a sophisticated digital tax system according to the best international standards. This is to carry out all operations smoothly and facilitate the processes of registration, filing tax returns, tax payments and tax refunds, thereby allowing quick completion.

Click here to read more.

Date: 12 Apr, 2021

External URL: https://timesofoman.com/article/zero-vat-on-488-food-items-in-oman

Muscat – April 12, 2021:

Nearly 500 food products commonly used by people in Oman will be subject to zero taxation under the Value Added Tax, once it comes into effect.

The measure is part of the Social Security Scheme issued by His Majesty Sultan Haitham Bin Tarik, and developed by the Ministry of Commerce, Industry, and Investment Promotion, in association with other government bodies.

Under the scheme, the number of basic food commodities charged a zero rate VAT will be increased to 488 from 93.

Furthermore, all VAT charges related to electricity consumption for citizens who have up to two residential category subscriptions will be paid by the government. VAT is expected to come into effect across the country on April 16.

Click here to read more.

Date: 11 Apr, 2021

External URL: https://www.khaleejtimes.com/business/banking-finance/uae-anti-money-laundering-registration-for-non-financial-entities-individuals-extended-until-april-30

Dubai- April 11, 2021:

The UAE Ministry of Economy announced the extension of the deadline granted to companies in the “specific non-financial business and professions” sector to register in government regulations approved for countering money laundering and combating the financing of terrorism until the end of April 2021.

The decision is due to the large numbers of companies in the sector seeking to register in the last days of the previous deadline, which expired on March 31, taking into account the conditions of companies and the business sector in general during the period of the Covid-19 pandemic.

Click here to read more.

Date: 09 Apr, 2021

External URL: https://www.tax.gov.ae/-/media/Files/FTA/links/Public-Clarification/Bulletin-AUTOMOTIVE-SECTOR-30Mar.pdf

Dubai- April 9, 2021:

FTA released a basic tax information bulletin on Automotive Sector meant for new car dealers, used car dealers, servicing and part’s suppliers.

The bulletin clarifies that supplies made by businesses in the automotive sector are generally subject to VAT, including but not limited to:

• Sales of new and used cars
• Sales of car parts
• Service centers’ services, warranties, and related insurance products

Supplies of qualified means of transport, such as buses that are designed or adapted for public transportation of 10 or more passengers and are actually used for public transportation are, however, zero-rated for VAT purposes.

For further clarification contact our tax experts.

Date: 08 Apr, 2021

External URL: https://www.tax.gov.ae/-/media/Files/FTA/links/Public-Clarification/VATP025---Zero-rating-certain-medical-equipment---06-04-2021.pdf

Dubai- April 8, 2021:

The Federal Tax Authority has published public clarification VATP025 on “Temporary Zero-rating of Certain Medical Equipment”.

The key highlights are:

• The date is extended till 31st December-2021 for VAT at the rate of 0% on certain supplies and import of medical equipment.
• After 31st December-2021 if there is any supply then normal procedures shall apply.

View the list of guides here.

For further clarification contact our tax experts.

Date: 06 Apr, 2021

External URL: https://www.tax.gov.ae/-/media/Files/FTA/links/Public-Clarification/VATP024---Adjustment-on-account-of-Bad-Debts---17-03-2021.pdf

Dubai- April 6, 2021:
FTA has published a public clarification VAT P024 on bad debt relief adjustment. The key points of VATP024 are as follows:

• In the event a supplier does not receive payment from the customer, the supplier may adjust the output vat on the bad debt subject to certain conditions as follows.

– VAT charged and accounted for on the supply (to FTA via tax returns).
– Consideration should have been written off in full or part.
– A duration of six months should have passed from the date of supply.
– Supplier has notified the customer that the amount has been written off.

• Bad debt relief can only be taken to the extent of consideration written off in the accounts.
• During the six months period, FTA considers that supplier should engage with customer to recover the debt.
• The supplier is required to notify the customer and communicate via a letter, email or post to the customer stating the amount of consideration that has been written off. The notification to the customer for the write-off must include:

– Invoice number and date of invoice which has not been paid.
– Amount of consideration which has been written off.
Note:

• It may not be necessary to obtain an acknowledgment from the customer. However, it is prudent to retain the evidence of having sent the notification.
• The adjustment on account of bad debt relief should be made in the “Adjustment column” of Box 1 of the VAT Return. The adjustment amount should be the VAT amount only

These key highlights are for your information only and should require further advice, kindly get in touch with our tax experts.

Date: 05 Apr, 2021

External URL: https://www.omanobserver.om/some-medicines-medical-equipment-exempted-from-vat/

Muscat- April 4, 2021:

The Head of the Tax Authority has issued decision 57/2021 that outlines certain medicines and medical equipment would be subject to value-added tax (VAT) at zero rate. Based on VAT Law promulgated by Royal Decree and based on the requirements of the public interest, it was decided:

Article 1:

Supplies of medicines, herbal medicines, biological preparations, health (hygienic) preparations, food for medical use and medical equipment are subject to value-added tax at zero rates provided a release permit is issued by the Ministry of Health in accordance with the customs code.

Article 2:

This decision shall be published in the Official Gazette and be enforced from April 16, 2021.

Click here to read more.

Date: 31 Mar, 2021

External URL: https://timesofoman.com/article/tax-authority-slams-social-media-rumours

Muscat- March 31, 2021:

The Tax Authority in Oman has denied the application of income tax for individuals starting from 2022 and has clarified that it is a rumour being circulated on social media.

Further, Oman’s Tax Authority in a statement issued online confirms that no official statement or decision has been issued in this regard. The matter is still under study according to what is announced in the medium-term fiscal balance plan. Therefore we note to verify the source of the information through official communication channels.

Click here to read more.

Date: 29 Mar, 2021

External URL: https://gulfnews.com/world/gulf/oman/oman-exempts-some-sectors-from-tax-until-end-of-year-1.78123114

Muscat- March 29, 2021:

As per local media reports, certain sectors such as hotels, tourist restaurants, cinemas, amusement and entertainment centres will be exempted from tax collected by the municipality till the end of the year December 2021 in Oman. The move comes as part of the State’s efforts to support businesses in the wake of coronavirus crisis.

The Muscat Municipality announced that it has decided to suspend collecting taxes from the above sectors until December 2021. The decision is based on the economic stimulus plan to mitigate the impact of Covid-19 crisis.

Date: 28 Mar, 2021

External URL: https://timesofoman.com/article/violators-of-vat-to-face-strict-penalties-in-oman

Muscat- March 28, 2021:

Oman has drafted a series of strict penalties for violators of VAT due to be effective from April 16, 2021.

The Tax Authority mentioned the penalties stipulated are imprisonment for a period of not less than two months, or a fine that is not less than OMR1,000. The maximum penalties can reach imprisonment for three years and a fine that does not exceed OMR20,000. In the event of recurrence, the court may double the fine and increase the maximum penalty for imprisonment by more than half of this limit.

In the event of delay in tax payment, the law imposes a rate of 1 % of the value of the unpaid tax for each month of delay, starting from the end of the specified period for payment and up to the date of payment.

The law has mentioned 17 cases in Articles 100 and 101, and it includes cases of wilful failure to implement some of its provisions, cases of providing incorrect data or documents, and cases of doing what would hinder the employees of the Tax Authority or who are required to carry out their duties.

Click here to read more.

Date: 25 Mar, 2021

External URL: https://www.arabnews.com/node/1830706/business-economy

Riyadh- March 25, 2021:

Saudi officials have issued 40,500 fines related to a number of different kinds of tax violations this year.

Governments worldwide are cracking down on tax evasion after sources public finances took a hammering during the pandemic. Few Gulf countries, including Saudi Arabia, introduced value added tax to boost revenues and reduce the dependency on oil revenues.

About 1.3 million registered taxpayers exist in the Kingdom according to the authority’s website.

Click here to read more.

Date: 21 Mar, 2021

External URL: https://www.saudigazette.com.sa/article/604509/SAUDI-ARABIA/No-customs-duty-for-personal-belongings-worth-SR3000

Riyadh- March 21, 2021:

Saudi Customs has clarified that travelers arriving in Saudi Arabia will not have to pay customs duty on new personal belongings if they are worth less than SR3,000 ($800). The report mentions that threshold for personal shipments is SR1,000 which includes the value of the goods and freight charges. However as per Saudi customs, a 15% value-added tax (VAT) is imposed on imported goods.

Students returning from abroad will be exempted from taxes on household furniture and personal belongings at the end of their studies or at the end of work abroad after submitting a proof of college attendance, it said.

Cars manufactured in 2016 and afterwards are allowed to be imported from UAE to Saudi Arabia, if they follow local specifications and standards and the fuel economy standard. Tax will be applied at 5% of the vehicle’s value, in addition to 15% VAT. The 15% VAT rate also applies to goods imported from other Gulf states, in addition to shipping fees, customs fees and any other charges. These will be applied until the electronic services system among the Gulf countries begins, Saudi Customs said.

Click here for more

Date: 15 Mar, 2021

External URL: https://www.arabnews.com/node/1822606/business-economy

Muscat- March 15, 2021:

Oman plans to cut income tax for small and medium businesses for 2020 and 2021 and will offer long-term residency permits for foreign investors. The plans are part of Oman’s Vision 2040 aimed at diversifying the economy away from oil, which makes up the bulk of state revenues.

Oman is one of the Gulf’s weakest economies and was badly hit by the coronavirus pandemic and low oil prices. The International Monetary Fund revealed its economy likely shrank 6.4 percent in 2020 and anticipates to make a modest recovery to 1.8 percent growth this year.

The measures also include income tax being reduced for companies in sectors aimed at economic diversification that will begin operating this year. Oman will also cut rent at the Duqm Special Economic Zone and industrial areas until the end of 2022.

click here to read more

Date: 14 Mar, 2021

External URL: https://www.tahawultech.com/news/tally-solutions-launches-its-vat-ready-software-tallyprime/

Muscat- March 14, 2021:

Tally Solutions, the leading international business management software provider launched a Value Added Tax (VAT) software, TallyPrime Release 1.1.3 to assist the Oman business owners towards an easy transition to the new tax regime.