VAT Newsletter
January 2019
Hello
Hello and welcome to the october edition of VAT newsletter
VAT Newsletter
April 2019
Read the latest news on VAT Guides, General Updates and GCC Updates.
Scroll down for more
In This Issue
JUMP TO A SECTION THAT INTERESTS YOU
Updates related to UAE
Other GCC Updates
Download full version
This website is to show off the key points of our annual report. Download the full version to print if you need to. There will also be a download button for each section to help you find the information that you need.
Check out our latest jobs
We have hundreds of opportunities up for grabs. Check our careers page for openings.
global offices
50
employees
23,000
VAT Alert
Updates related to UAE
grantthornton.ae
© 2018 Grant Thornton UAE. All rights reserved.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.
To discuss the VAT public clarifications further contact our team at grantthornton@ae.gt.com
Steve Kitching
About Us
Grant Thornton is one of the world’s leading organisations of independent assurance, tax and advisory firms. We help dynamic organisations unlock their potential for growth by providing meaningful, forward looking advice. More than 50,000 people across over 130 countries, are focused on making a difference to clients, colleagues and the communities in which we live and work.
Partner, Tax Advisory
T : +971 4 388 9925
Email : steve.kitching@ae.gt.com
Value Added Tax (‘VAT’) Updates
Related Articles
Home
Other GCC Updates
UAE Updates
MENU
Other GCC Updates
UAE Updates
1. VAT Financial Guarantee or Cash Deposit Release for Non Registered Importers User Guide VAT 702
The Federal Tax Authority (‘FTA’) has issued a user guide allowing non-registered importers to submit a request to liquidate (either completely or partially) an e-Guarantee. The guide also explains the procedure to refund either completely or partially an e-Dirham deposit provided while importing goods under tax suspension regime. This request is made through ‘VAT 702 Form’ which allows the non-registered importer to notify the FTA regarding liquidating Financial Guarantee or refunding a Cash Deposit.
The guide provides clarification on when VAT 702 form should be submitted, who should submit the form, and a detailed procedure on how to access and complete the form online.
The VAT Financial Guarantee or Cash Deposit Release for Non Registered Importers User Guide can be accessed using the following link:
https://www.tax.gov.ae/pdf/VAT%20702%20user%20guide.pdf
2. VAT User Payment Guide
The FTA has updated the VAT User Payment Guide introducing the section ‘Allocation of Payments’. With this new section, the user is now able to choose one of the three payment allocation options on the e-service portal. These are:
1. Tax Liability Cleared First: This option means that payments will be allocated in relation to settle the outstanding tax liabilities first (starting with the oldest), and thereafter, to settle any administrative penalties Liabilities (starting with the oldest). The FTA has set this as the default option.
2. Administrative Penalties Cleared First: This option allows the user to allocate payments towards clearing any outstanding administrative penalties (starting with the oldest), and subsequently to settle their tax liabilities (starting with the oldest).
3. Oldest Liability Cleared First: The third option allows the user to settle their liabilities in chronological order, starting with the oldest liability, regardless of whether the payment is in relation to tax or administrative penalties.
The Updated VAT User Payment Guide can be accessed using the following link:
https://www.tax.gov.ae/pdf/Payment%20User%20Guide_English_V4.pdf
Excise Tax Updates
3. Digital Tax Stamps (‘DTS’)
On 15th April 2019, the FTA announced features of the official DTS and required to be placed on all cigarette packs circulated in local markets and has urged full compliance with Cabinet Decision No. (42) of 2018 On Marking Tobacco and Tobacco Products and with Federal Tax Authority Decision No. (3) of 2018 on Implementing the Marking Tobacco and Tobacco Products Scheme.
The FTA has reaffirmed the penalties which will be imposed for non-compliance with the scheme. The timeline of the scheme was reiterated with the FTA stating that from 1st May 2019, importing any type of cigarettes not bearing the DTS would be banned and from 1st August 2019, selling, distributing, or manufacturing any unmarked tobacco products will be banned across all local UAE markets.
The FTA Announcement can be accessed using the following link:
https://www.tax.gov.ae/FederalTaxAuthorityAnnouncesFeatures.aspx
Other Updates
4. UAE Customs
Dubai Customs has recently issued the following Customs Notices in the month of April:
• Customs Notice No. (4/2019) on air export, re-export and transit via courier companies
Link: https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN4_2019.pdf
• Customs Notice No. (5/2019) on placing digital tax stamps on tobacco and tobacco products
Link: https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN5_2019.pdf
• Customs Notice No. (6/2019) on nicotine e-products (as opposed to traditional nicotine products)
Link: https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN6_2019.pdf
New Guide on Financial Services
Other GCC
Updates
grantthornton.ae
© 2018 Grant Thornton UAE. All rights reserved.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.
To discuss the VAT public clarifications further contact our team at grantthornton@ae.gt.com
Steve Kitching
About Us
Grant Thornton is one of the world’s leading organisations of independent assurance, tax and advisory firms. We help dynamic organisations unlock their potential for growth by providing meaningful, forward looking advice. More than 50,000 people across over 130 countries, are focused on making a difference to clients, colleagues and the communities in which we live and work.
Partner, Tax Advisory
T : +971 4 388 9925
Email : steve.kitching@ae.gt.com
The Kingdom of Saudi Arabia ('KSA')
Other GCC Updates
Related Articles
Home
Other GCC Updates
UAE Updates
MENU
1. Board of Directors
The GAZT has released a statement affirming that members of Boards of Directors of companies, bodies and institutions are not subject to VAT. The press release confirmed that board of directors are not required to register for VAT or issue tax Invoices for their services.
Link to the press release (in Arabic):
Click Here
2. Imports and Exports VAT Guide
The General Authority of Zakat and Tax (“GAZT”) in the KSA have published an updated version of the Imports and Exports VAT Guide particularly focusing on the documentation and evidence required to indicate that the goods being transported outside of GCC Territory.
Link to Imports and Exports VAT Guide:
https://www.vat.gov.sa/sites/default/files/2018-09/VAT_import_Export_Guideline_English.pdf
3. VAT Oil and Gas Guideline
The GAZT in KSA has recently published the VAT Oil and Gas Guide which aims to provide further clarification to taxpayers with regards to the VAT implications of transactions in the oil and gas sector. The Guide specifies definitions and VAT considerations in each of the following areas:
• Exploration and production sectors, also known as ‘Upstream’ activities;
• Transport and trading also known as ‘Midstream’ activities; and
• Refining and distribution, also known as ‘Downstream’ activities
The Oil and Gas Guideline can be accessed using the following link:
https://www.vat.gov.sa/sites/default/files/2019-05/Vat_Oil_Gas_Guideline_Eng_Rv1.pdf
4. Other VAT Guides
The KSA GAZT has also published the following Guidelines:
The VAT Guideline Economic Activity, which can be accessed using the following link:
https://www.vat.gov.sa/sites/default/files/2019-04/VAT_Economic_Activity_Guideline_Eng%5B2%5D.pdf
The English version of the Transfer of a Business Guideline, which was previously only published in Arabic. It can be accessed using the following link:
https://www.vat.gov.sa/sites/default/files/2019-04/Vat_BT_Guideline_Eng1%5B4%5D.pdf
The VAT on Employee Benefits Guideline, which can be accessed using the following link:
https://www.vat.gov.sa/sites/default/files/2019-04/VAT_Employee_Engagement_Guideline_Eng_Rv1.pdf
(II) Bahrain
1. VAT Education Booklet
The Bahrain National Bureau for Revenue (‘NBR’) has published a booklet on the VAT treatment of goods and services that are related to the provision of educational services. The booklet explains the cases wherein educational services are taxable at zero-rate. The guide also provides examples of supplies that will not qualify as educational services and will therefore, be taxable at the standard rate of 5%.
The booklet also provides additional guidance with regards to third party considerations, VAT treatment of grants and sponsorships received, school transportation services and online educational courses.
The VAT Education Booklet can be accessed using the following link:
https://s3-eu-west-1.amazonaws.com/nbrproduserdata/media/9wbmabvgD7XP1RhbJAXoMRcPLA5LRuG49dh17vJ4.pdf
Updates related to VAT - UAE
Excise tax Updates - UAE
VAT Newsletter
January 2019
Hello
Hello and welcome to the october edition of VAT newsletter
VAT Newsletter
March 2019
Register for our VAT WEBINAR, read the latest news on VAT Guides, General Updates and GCC Updates.
In This Issue
JUMP TO A SECTION THAT INTERESTS YOU
Updates related to Value Added Tax
Join us for VAT Webinar
Updates related to Excise Tax
Direct Tax Updates
GCC Updates
Download full version
This website is to show off the key points of our annual report. Download the full version to print if you need to. There will also be a download button for each section to help you find the information that you need.
Check out our latest jobs
We have hundreds of opportunities up for grabs. Check our careers page for openings.
global offices
50
employees
23,000