The Oman Tax Authority (OTA) has published several new clarifications on Value Added Tax (VAT) in Oman, relating to the following:
The publication of these clarifications is important for businesses to gain a better understanding of the VAT rules and implications on their business operations in light of the recent implementation of VAT in Oman on 16 April 2021.
Based on our experience in other Gulf Cooperation Council (GCC)
jurisdictions which previously implemented VAT, businesses should expect the
OTA to publish guidelines and clarifications on a wide range of sectors and
transactions. These will be critical for businesses to understand in practical
terms how the VAT legislation applies to complex or sector-specific aspects of
their operations
The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published an updated version of its guide on VAT refunds for business visitors.
The guide clarifies that, when additional countries are made eligible for the scheme, refunds may only be requested by applicants on expenses incurred on or after the effective date of agreement between their country and the UAE.
In addition, the required documents to be submitted with an application have been updated as follows:
In addition, the list of eligible countries (which remains the same) has been moved to a separate document here.
The deadline to submit applications for expenses incurred in the 2020 calendar year is 31 August 2021. As such, businesses eligible to apply should carefully review the amended guidance in order to provide the correct documentation to the FTA before the deadline.
In particular, businesses should give consideration to requirements relating to attestation, delivery of hard copies, and demonstrating proof of payment, and allocate sufficient time to have all the required documents ready and provided to the FTA before the deadline.
The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published an updated version of its Real Estate Value Added Tax (VAT) guide.
Section 13.2 of the guide has been updated in line with the recent update to the UAE VAT Regulations, which amended the period within which a refund claim must be made relating to a new residence built by a UAE citizen to 12 months from the date of completion of the newly built residence. The refund claim was previously required to be made within 6 months of the date of completion of the newly built residence.
According to media reports, in a recent interview, Crown Prince Mohammed bin Salman of the Kingdom of Saudi Arabia (KSA) indicated that the increased VAT rate of 15% in KSA is a temporary measure which is expected to be in place for a minimum of one year and maximum of five years.
The VAT rate in KSA was raised on 1 July 2020 from 5% to 15% as part of a number of economic initiatives implemented by the KSA government last year in response to the economic impact of the COVID-19 pandemic.
This indicates that the KSA government plans to re-align its VAT regime with the other GCC states which have retained their standard rate of VAT at 5%. As such, businesses should expect potential tax policy changes in the coming months and years as the economic impact of the pandemic subsides.
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.