On 11 August 2022, Dubai Customs launched a new voluntary disclosure program called the Self-Audit Findings. This program encourages importers and exporters in the Dubai, United Arab Emirates (UAE) to voluntarily disclose errors and report irregularities that may have been committed while reporting import and export Customs declarations. The aim is to increase Customs compliance levels among businesses based in Dubai and to strengthen trust and transparency.
One of the key advantages of using this service is to avoid any potential penalties associated with the discovered non-compliance transactions by Dubai Customs. The Self-Audit Findings application must be made before a notification of target Customs audit process.
The UAE Federal Tax Authority (FTA) has published a Decision on the maximum amount of cash refunds under the Tourist Refund Scheme (TRS).
FTA Decision No. 6 of 2022 increases the maximum cash refund of Value Added Tax (VAT) per overseas tourist per 24 hours from AED 7,000 to AED 35,000.
The TRS allows overseas tourists visiting the UAE to obtain refunds of VAT incurred on certain eligible purchases made in the UAE. The change in the maximum cash refund amount is likely intended to promote tourism and shopping by overseas tourists in the UAE.
For more information about the TRS or VAT in the UAE generally, please email any of the contacts below or your usual Deloitte contact.
The Oman Tax Authority (OTA) has published a VAT guide on E-commerce, providing guidance and clarification to businesses engaged in transactions via “electronic means” (including via websites, electronic platforms, online stores, social media or apps). The guide is currently available in Arabic here.
The document sets out VAT implications of different types of E-commerce models i.e. Business-to-Business, Business-to-Consumer, Consumer-to-Consumer, and Consumer-to-Business.
The guide explains what constitutes an ‘Electronically Supplied Service’ (ESS) and provides examples to help taxpayers determine the place of supply for VAT of such services. It also details situations under which an overseas E-commerce business would need to seek VAT registration in Oman, and the VAT implications of transactions performed through agents (whether disclosed or undisclosed).
Suppliers of ESS should carefully review the provisions of the guide. It is important to note that there is no minimum turnover threshold for VAT registration for non-resident businesses operating in Oman – it is therefore critical to understand the obligations as well as what options might be available. Once VAT registered, a non-resident business is likely to need to comply with other requirements (including rules regarding the issuance of tax invoices, filing of VAT returns, etc.).
With the aim to further mitigate the economic effects of the COVID-19 outbreak, the Zakat, Tax and Customs Authority (ZATCA) has announced the relaunch of the initiative to waive penalties on certain taxes, including Corporate Income Tax, Withholding Tax (WHT), Value Added Tax (VAT), Real Estate Transaction Tax (RETT), and any errors relating to e-invoicing. The period to apply for the relief started on 1 June 2022 and will end on 30 November 2022.
What does this mean for your business?
The penalty Amnesty provides an excellent opportunity for businesses to review their past returns on VAT and other taxes, as well as take corrective action where needed. To ensure compliance and minimize the risk of penalties being imposed by the ZATCA after 30 November 2022, we recommend that businesses start reviewing their VAT returns and other taxes as soon as possible.
Deloitte can help
We have designed an approach and methodology to support businesses in identifying and correcting errors and issues in their past VAT returns and other taxes. If you have not yet considered a review of these taxes, our advice is to carry out this exercise.
The reviews can be carried out individually or as part of a coordinated program across all taxes and some of the key focus areas can include:
VAT and RETT Health Check
Corporate Tax and Zakat Health Check
WHT Health Check
E-invoicing Health Check
This is an excellent opportunity to be able to deal with any past errors or difficulties in a practical and effective manner.
Deloitte recently held a webinar on the Tax Amnesty, in both English and Arabic, which can be accessed here.
Deloitte events
Deloitte Customs and Global Trade Academy | Module 1: Key fundamentals impacting your business
The Deloitte Indirect Tax team is pleased to announce the launch of its Customs and Global Trade academy. The first module of the academy will be held in-person in both the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) in September 2022. The sessions will be conducted in English and Arabic dependent on the location. The full academy details, including the dates per location, are listed below.
Academy objective
Customs and Global Trade requirements have been rapidly evolving across the Gulf Cooperation Council (GCC). This academy is intended to help affected businesses understand the likely scope and scale of these requirements, and what changes might be necessary to accommodate them. It will also provide an opportunity for professionals to network with industry peers.
Module 1 – Topics
The first module of the academy will focus the key fundamentals impacting businesses in the GCC and will cover the following areas:
Please note that this is a paid event and at the end of the training session you will be awarded a participation certificate. The full academy details are listed below. We look forward to having you at the academy.
Additional details
Dates
Venue
The venue per location and date will be communicated in the confirmation email.
Fee
The cost to attend this training is 2,500 AED + VAT (2,500 SAR + VAT) and covers all training materials and meals.
Payment details
Once registered, an invoice will be shared with each participant which includes the payment details.
Registration
Please register your interest on the following link
Duration and agenda
09:00 – 09:30am |
Registration and breakfast |
09:30 – 10:00am |
Introduction to Customs in the |
10:00 – 10:45am |
HS code/Tariff classification |
10:45 – 11:00am |
Coffee break |
11:00 – 11:30am |
Preferential and Non-Preferential Origin |
11:30 – 12:30pm |
Customs valuation |
12:30 – 1:00pm |
Test your knowledge |
1:00 – 2:00pm |
Lunch and networking opportunity |
2:00 – 3:00pm |
Customs audits and dispute processes |
3:00 – 3:15pm |
Coffee break |
3:15 – 4:00pm |
Export Controls and sanctions |
4:00 – 4:15pm |
Test your knowledge and closure |
Phase two of the e-invoicing implementation in KSA
E-invoicing was introduced last year in the Kingdom of Saudi Arabia (KSA). Phase one of the implementation, the generation phase, has already gone live on December 4, 2021. Phase two of the implementation, the integration phase, will go live on January 1, 2023. This phase will require taxpayers to integrate their invoicing systems with the Zakat, Tax and Customs Authority (ZATCA) Fatoora Portal in a number of structured waves.
To deal with phase two and to ensure compliance with the regulations, businesses will require detailed systems and processes in addition to considering other changes. Deloitte will be hosting a 60-minute webinar on Monday, 5 September, 2022 to support businesses in preparing for phase two by addressing the following topics:
The land and property sector in the KSA | Key commercial, legal, and tax considerations
The Deloitte Tax and Real Estate advisory teams located in the Kingdom of Saudi Arabia (KSA) are please to invite you to attend our upcoming roundtable discussion taking place on Monday, 19 September 2022 in Riyadh, KSA.
Real Estate and infrastructure sectors are at the epicenter of Saudi Arabia’s Vision 2030 scheme. As per media reports, almost $1 trillion of real estate and infrastructure projects have been announced across the KSA since 2016. With the ongoing pace of development and infrastructure activities in the Kingdom, businesses will need to manage their commercial, legal, and tax aspects carefully in an already fast paced and ever evolving environment.
During this roundtable discussion, our Tax and Real Estate experts, together with Legal experts from Baker McKenzie, will share their insights, amongst others, on the following topics:
This digest is for information purposes only and should not be construed as advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.