Everything You Need To Know About The Amendment of VAT Law

Definitions

Old Provisions: New Addition

New Provisions: 1. Relevant Charitable Activity: An activity for a purpose other than profit or benefit to any proprietor, member, or shareholder of the Charity, which is undertaken by the Charity in the course or furtherance of its charitable purposes or objectives to carry out a charitable activity in the State

2. Pure Hydrocarbons: Any of the various pure compounds of the chemical formula consisting solely of hydrogen and carbon (CxHY).

3. Tax Evasion: The Person’s use of illegal means, resulting in the reduction of the amount of the Due Tax, non-payment thereof, or a refund of Tax that the Person did not have the right to have refunded.

4. Tax Audit: A procedure undertaken by the Authority to inspect the commercial records or any information, data or goods related to a Person to verify the fulfilment of its obligations in accordance with the provisions of this Decree-Law or the Tax Procedures Law.

Article 5 (Supply of Goods)

Old Provision- Entry into a contract between two parties entailing the transfer of Goods at a later time, pursuant to the conditions specified in the Executive Regulation of this Decree-Law.

New Provision: Entry Into a contract between two or more parties entailing the transfer of goods at a later time, pursuant to the conditions specified in the Executive Regulation of this Decree-Law.

Article 7 (Supply in Special Cases)

Old Provision: NEW ADDITION

New Provision: The following shall not be considered a supply:

1. The sale or issuance of any Voucher unless the Consideration received in respect thereof exceeds its advertised monetary value, as specified in the Executive Regulation of this Decree-Law.
2. The transfer of the whole or an independent part of a Business from a Person to a Taxable Person for the purposes of continuing the Business that was transferred.
3. Any other supply specified in the Executive Regulation of this Decree-Law.

Article 13

Old Provision:

1. Every Person, who has a Place of Residence in the State or an Implementing State and is not already registered for Tax, shall register in the following situations:
   1. Where the total value of all supplies referred to in Article (19) exceeded the Mandatory Registration Threshold over the previous 12-month period.
   2. Where it is anticipated that the total value of all supplies referred to in Article (19) will exceed the Mandatory Registration Threshold in the next thirty (30) days.
2. Every Person, who does not have a Place of Residence in the State or an Implementing State and is not already registered for Tax, shall register for Tax if he makes supplies of Goods or Services, and where no other Person is obligated to pay the Due Tax on these supplies in the State.

Article 15 (Registration Exception)

Old Provision: The Authority may accept a Taxable Person from mandatory Tax Registration upon his request if his supplies are only subject to the zero rate

New Provision: The Authority may accept a Taxable Person from Tax Registration, whether he is registered or not, upon his request if his supplies are only subject to the zero rate

Article 21 (Tax De-registration Cases)

Old Provision: A Registrant shall apply to the Authority for Tax Deregistration in any of the following cases:

1. If he stops making Taxable Supplies.
2. If the value of the Taxable Supplies made over a period of (12) consecutive months is less than the Voluntary Registration Threshold and said Registrant does not meet the condition stipulated in Clause (2) of Article (17) of this Decree-Law.

New Provision:

1. A Registrant shall apply to the Authority for Tax deregistration in any of the following cases
   1. If he stops making Taxable Supplies.
   2. If the value of the Taxable Supplies made over a period of 12 consecutive months is less than the Voluntary Registration Threshold and the Registrant does not meet the condition stipulated in Clause 2 of Article 17 of this Decree-Law.
2. The Authority may, in accordance with the controls and conditions specified in the Executive Regulation of this Decree-Law, issue a Tax deregistration decision if the Authority finds that continuity of such Tax Registration may prejudice the integrity of the Tax system.
3. Tax deregistration shall not result in the relinquishment of the Authority’s right to claim any Due Tax or Administrative Penalties.

Article 26 (Date of Supply in Special Cases)

Old Provision: The date of supply of Goods or Services for any contract that includes periodic payments or consecutive invoices shall be the earliest of any of the following dates, provided that it does not exceed one year from the date of the provision of such Goods and Services:

1. The date of issuance of any Tax Invoice.
2. The date payment is due as shown on the Tax Invoice.
3. The date of receipt of payment.

New Provision: The date of supply of Goods or Services for any contract that includes periodic payments or consecutive invoices shall be the earliest of any of the following dates:

1. The date of issuance of any Tax Invoice.
2. The date payment is due as specified on the Tax Invoice.
3. The date of receipt of payment.
4. The date of expiration of one year from the date the Goods or Services were provided.

Article 27 (Place of Supply of Goods)

Old Provision: Clause 3: The place of supply of Goods that includes Export or Import shall be as follows:

a. Inside the State in the following instances:

1. If the supply includes exporting to a place outside the Implementing States.
2. If the Recipient of Goods in an Implementing State is not registered for Tax in the state of destination, the total exports from the same supplier to this state do not exceed the mandatory registration threshold for said state.
3. The Recipient of Goods does not have a Tax Registration Number in the State, and the total exports from the same supplier in an Implementing State to the State exceed the Mandatory Registration Threshold.

New Provision:  Clause 3: The place of supply of Goods that includes Export or Import shall be as follows:

a. Inside the State in the following instances:

1. If the supply includes exporting to a place outside the Implementing States.
2. If the Recipient of Goods in an Implementing State is not registered for Tax in the state of destination, and the total exports from the same supplier to this state does not exceed the Mandatory Registration Threshold for such state.
3. If the Recipient of Goods in the State does not have a Tax Registration Number, the total exports from the same supplier in an Implementing State to the State exceed the Mandatory Registration Threshold.
4. If Clause 1 of Article 26 of this Decree-Law applies, and the ownership of Goods is transferred in the State

Article 30 (Place of Supply in Special Cases)

Old Provision: Clause 8: For the Supply of transportation Services, the place of supply shall be where transportation starts. The Executive Regulation of this Decree-Law shall specify the place of supply for transportation Services if the trip includes more than one stop.

New Provision: Clause 8: For the supply of transportation Services or Transport-related Services, the place of supply shall be where the transportation starts. The Executive Regulation of this Decree-Law shall specify the place of supply for transportation Services and Transport-related Services if the trip includes more than one stop.

Article 33 (The Agent)

Old Provision: The Place of Residence of an agent shall be regarded as the Place of Residence of the principal in the following two cases:

1. If the agent regularly exercises the right of negotiation and enters into agreements in favor of the principal.
2. If the agent maintains a stock of Goods to fulfill supply agreements for the principal regularly.

New Provision: The Place of Residence of the principal shall be considered as being the Place of Residence of the agent in any of the following cases:

1. If the agent regularly exercises the right of negotiation and enters into agreements in favor of the principal.
2. If the agent maintains a stock of Goods to fulfil supply agreements for the principal regularly

Article 36 (Value of Supplies and Deemed Supply for Related Parties)

Old Provision: Value of Supply for Related Parties

As an exception to Articles (34) and (35) of this Decree-Law, the value of the supply or Import of Goods or Services between Related Parties shall be considered equal to the market value if the following conditions are met:

1. The value of the supply is less than the market value.
2. If the supply is a Taxable Supply and the Recipient of Goods or Recipient of Services does not have the right to recover the full Tax that would have been charged to such supply as Input Tax.

New Provision: Value of Supply and Deemed Supply for Related Parties

As an exception to Articles 34, 35, and 37 of this Decree-Law, the value of the supply or Import of Goods or Services between Related Parties shall be considered equal to the market value if all of the following conditions are met:

1. The value of the supply is less than the market value.
2. If the supply is a Taxable Supply and the Recipient of Goods or Recipient of Services does not have the right to recover the full Tax that would have been charged on such supply as Input Tax.

Article 45 (Goods and Services Subject to Zero Rate)

Old Provision: Clause 4: Supply of air, sea and land means of transport for the transportation of passengers and Goods as specified in the Executive Regulation of this Decree-Law.

Clause 5: Supply of Goods and Services related to the supply of the means of transport mentioned in Clause (4) of this Article and which are designed for the operation, repair, maintenance or conversion of these means of transport.

Clause 6: Supply of aircrafts or vessels designated for rescue and assistance by air or sea.

Clause 12: The supply of crude oil and natural gas.

Clause 14: The supply of preventive and basic healthcare Services and related Goods and Services according to what is specified in the Executive Regulation of this Decree-Law.

New Provision: Clause 4:Supply or Import of air, sea and land means of transport for the transportation of passengers and Goods as per the criteria and conditions specified in the Executive Regulation of this Decree-Law.

Clause 5: Supply of Goods or Services, or Import of Concerned Goods, related to the supply of the means of transport mentioned in Clause 4 of this Article and which are designated for the operation, repair, maintenance or conversion of these means of transport.

Clause 6: Supply or Import of air or sea rescue and assistance aircrafts or vessels.

Clause 12:The supply or Import of crude oil and natural gas.

Clause 14: The supply of preventive and basic healthcare Services and related Goods and Services, and Import of concerned related Goods according to what is specified in the Executive Regulation of this Decree-Law.

Article 46 (Supply Exempt from Tax)

Old Provision: Clause 1: Financial services that are specified in the Executive Regulation of this Decree-Law.

New Provision: Clause 1: Supply of financial services that are specified in the Executive Regulation of this Decree-Law.

Article 48 (Reverse Charge)

Old Provision: Clause 3: If a Registrant makes a Taxable Supply in the State to another Registrant of any crude or refined oil, unprocessed or processed natural gas, or any hydrocarbons, and the Recipient of these Goods intends to either resell the purchased Goods as crude or refined oil, unprocessed or processed natural gas, or any hydrocarbons, or use these Goods to produce or distribute any form of energy, the following rules shall apply:

1. The Registrant making the Supply shall not charge Tax on the value of the supply of the Goods referred to in this paragraph.
2. The Recipient of the Goods shall calculate the Tax on the value of the Goods supplied thereto and shall be responsible for all applicable Tax obligations and for calculating the Due Tax in respect of such supplies.

Clause 4:The provisions of Clause (3) of this Article shall not apply in any of the following situations:

1. Where, before the Date of Supply, the Recipient of Goods has not provided a written confirmation to the supplier that his acquisition of the Goods is for the purpose of resale.
2. Where, before the Date of Supply, the Recipient of Goods has not provided a written confirmation to the supplier that he is a Registrant and the supplier has not verified the Tax Registration of the Recipient of Goods by means approved by the Authority.
3. Where the Taxable Supply would be subject to Tax at the rate of 0% in accordance with Clause (1) of Article (45) of this Decree-Law. d. Where the Taxable Supply includes a supply of Goods or Services other than the Goods referred to in Clause (3) of this Article.

Clause 5: Where a Recipient of Goods of any crude or refined oil, unprocessed or processed natural gas, or any hydrocarbons confirms in writing to the supplier that he is a Registrant for the purposes of applying Clause (3) of this Article, the following shall apply:

1. The supplier shall not be liable for calculating the Tax in relation to the supply unless he was aware or supposed to be aware, that the Recipient was not a Registrant at the Date of Supply.
2. The Recipient shall be liable for the calculation of any Due Tax in respect of the supply.

New Provision: Clause 3: If a Registrant makes a Taxable Supply in the State to another Registrant of any crude or refined oil, unprocessed or processed natural gas, or Pure Hydrocarbons, and the Recipient of these Goods intends to either resell the purchased Goods as crude or refined oil, unprocessed or processed natural gas, or Pure Hydrocarbons, or use these Goods to produce or distribute any form of energy, the following rules shall apply:

1. The Registrant making the Supply shall not account for Tax on the value of the supply of the Goods referred to in this Clause.
2. The Recipient of the Goods shall calculate the Tax on the value of the Goods supplied to him and shall be responsible for all applicable Tax obligations and for calculating the Due Tax in respect of such supplies.

Clause 4: The provisions of Clause 3 of this Article shall not apply in any of the following situations:

1. Where, before the Date of Supply, the Recipient of Goods has not provided a written declaration to the supplier that his acquisition of the Goods is for the purpose of resale, or use for production or distribution of any form of energy.
2. Where, before the Date of Supply, the Recipient of Goods has not provided a written declaration to the supplier that he is a Registrant and the supplier has not verified the Tax Registration of the Recipient of Goods by means approved by the Authority based on the data provided in the declaration.
3. Where the Taxable Supply would be subject to Tax at the zero rate in accordance with Clause 1 of Article 45 of this Decree-Law.
4. Where the Taxable Supply includes a supply of Goods or Services other than the Goods referred to in Clause 3 of this Article.

Clause 5: Where a Recipient of Goods of any crude or refined oil, unprocessed or processed natural gas, or Pure Hydrocarbons declares in writing to the supplier that he is a Registrant for the purposes of applying Clause 3 of this Article, the following shall apply:

1. The supplier shall not be liable for accounting for the Tax in relation to the supply unless he was aware or supposed to be aware, that the Recipient was 24 Federal Decree-Law No. 8 of 2017 and its amendments – Unofficial translation not a Registrant at the Date of Supply.
2. The Recipient shall be liable for the calculation of Due Tax in respect of the supply.

Clause 8: The Cabinet may issue a decision specifying other Goods or Services that are subject to the reverse charge and specify the relevant conditions and provisions.

Article 55 (Recovery of Recoverable Input Tax in the Tax Period

Old Provision: Clause 1: Taking into consideration the provisions of Article (56) of this Decree-Law, the Recoverable Input Tax may be deducted through the Tax Return relating to the first Tax Period in which the following conditions have been satisfied:

1. The Taxable Person receives and keeps the Tax Invoice as per the provisions of this Decree-Law, provided that the Tax Invoice includes the details of the supply related to such Input Tax, or keeps any other document pursuant to Clause (3) of Article (65) of this Decree-Law in relation to the Supply or Import on which Input Tax was paid.

New Provision: Clause 1(a): Taking into consideration the provisions of Article 56 of this Decree-Law, the recoverable Input Tax may be deducted through the Tax Return relating to the first Tax Period in which the following two conditions have been satisfied:

1. If any of the following cases has occurred:

1. The Taxable Person receives and retains the Tax Invoice as per the provisions of this Decree-Law, provided that the Tax Invoice includes the details of the supply related to such Input Tax, or keeps any other document pursuant to Clause 3 of Article 65 of this Decree-Law in relation to the Supply on which Input Tax was paid.
2. The Taxable Person imports the Goods, and receives and retains invoices and Import documents in accordance with the provisions of this Decree-Law and its Executive Regulation in relation to the Import on which Input Tax was paid or declared.
3. The Taxable Person imports the Services, and receives and retains invoices in accordance with the provisions of this Decree-Law and its Executive Regulation in relation to the Import on which Input Tax was declared.

Article 57 (Recovery of Tax by Government Entities and Charities)

Old Provision: A Cabinet Decision shall be issued at the suggestion of the Minister determining the Government Entities and Charities entitled to recover the full amount of Input Tax paid by them, except for:

1. Tax excluded from recovery as specified in the Executive Regulation of this Decree-Law.
2. Tax paid for Goods and Services used to perform exempt supplies.

New Provision:

1. Without prejudice to the general provisions of Input Tax recovery, Government Entities and Charities entitled to recover the full amount of Input Tax shall be determined in a Cabinet Decision issued upon the recommendation of the Minister, according to the following:
   1. Input Tax paid by the Government Entity for the purposes of its Sovereign Activities.
   2. Input Tax paid by the Charity for the purposes of its Relevant Charitable Activity.
2. As an exception to the provisions of Clause 1 of this Article, the following shall be excluded from recovery:
   1. Tax excluded from recovery as specified in the Executive Regulation of this Decree-Law.
   2. Tax paid for Goods and Services used to perform Exempt Supplies.

Article 61 (Instances and Conditions for Output Tax Adjustments)

Old Provision: Clause 1(e): e. If the Tax was charged in error.

New Provision: Clause 1(e): If the Tax was charged or Tax treatment was applied in error.

Article 62 (Mechanism for Output Tax Adjustment)

Old Provision: Clause 2: If the Output Tax calculated by the Registrant exceeds the Output Tax which should have been charged on the supply, the Registrant shall issue a Tax Credit Note according to the provisions of this Decree-Law.

New Provision: Clause 2: If the Output Tax calculated by the Registrant exceeds the Output Tax which should have been charged on the supply, the Registrant shall issue a Tax Credit Note according to the provisions of this Decree-Law within 14 days from the date in which any of the situations provided for in Clause 1 of Article 61 of this Decree-Law took place

Article 65 (Conditions and Requirements for Issuing Tax Invoices)

Old Provision: Clause 4: Any Person who receives an amount as Tax pursuant to any document issued by him shall pay this amount to the Authority even if it is not due.

New Provision: Clause 4: Any Person receiving an amount as Tax or issuing a Tax Invoice in respect of an amount, must pay such amount to the Authority, and this amount shall be regarded as being similar to Due Tax under the provisions of this Decree-Law.

Article 67 (Date of Issuance of Tax Invoice)

Old Provisions: The Registrant shall issue a Tax Invoice within 14 days as of the date of supply as stated in Article (25) of this Decree-Law.

New Provisions:

1. The Registrant shall issue a Tax Invoice within 14 days from the date of supply as stated in Article 25 or Article 26 of this Decree-Law.
2. The Executive Regulation of this Decree-Law shall determine the cases that are subject to periods other than that specified in Clause 1 of this Article, or the cases in which the Tax Invoice shall be issued immediately in accordance with the controls specified therein

Article 74 (Excess Recoverable Tax)

Old Provisions:

1. With the exception of what will be stipulated in the Executive Regulation of this Decree-Law, the Taxable Person shall carry forward any excess Recoverable Tax to the subsequent Tax Periods and offset such excess against Payable Tax or any Administrative Penalties imposed under this Decree-Law or Federal Law No. (7) of 2017 on Tax Procedures in subsequent Tax Periods until such excess is fully utilised, in the following cases:
   1. If the Taxable Person's Recoverable Input Tax set forth in this Decree-Law exceeds the Output Tax payable for the same Tax Period.
   2. If the Tax paid to the Authority by the Taxable Person exceeds the Payable Tax according to the provisions of this Decree-Law, other than in the instance mentioned in paragraph (a) of Clause (1) of this Article.
2. If there remains any excess for any Tax Period after being carried forward for a period of time, the Taxable Person may apply to the Authority to reclaim the remaining excess. The Executive Regulation of this Decree-Law shall specify the time limits, procedures and mechanisms of returning any remaining excess to the Taxable Person.

New Provisions:

1. Subject to the provisions of the Tax Procedures Law and its Executive Regulation, and without prejudice to the Authority's right to offset in accordance with the provisions of Clause 2 of this Article, the Taxable Person shall be entitled to apply to the Authority to recover excess Recoverable Tax, or part thereof, in accordance with the time limits and procedures specified in the Executive Regulation of this Decree-Law, in the following cases:
   1. If the Taxable Person's Recoverable Input Tax set forth in this Decree-Law exceeds the Output Tax payable for the same Tax Period.
   2. If the Tax paid to the Authority by the Taxable Person exceeds the Payable Tax according to the provisions of this Decree-Law, other than in the instance mentioned in Paragraph (a) of Clause 1 of this Article.
2. The Authority shall offset the excess Recoverable Tax against the Payable Tax or any Administrative Penalties imposed in accordance with the provisions of this Decree-Law or Tax Procedures Law.
3. If no request is submitted to recover the excess after offsetting, the excess Recoverable Tax will be carried forward to the subsequent Tax Periods.

Article 76 (Administrative Penalties Assessment)

Old Provisions: Without prejudice to the provisions of Federal Law No. (7) of 2017 on Tax Procedures, the Authority shall issue an Administrative Penalty Assessment to the Person and notify the Person of the same within five (5) business days as of the date of issuance in any of the following cases:

1. Failure by the Taxable Person to display prices inclusive of Tax according to Article (38) of this Decree-Law.
2. Failure by the Taxable Person to notify the Authority of applying Tax based on the margin according to Article (43) of this Decree-Law.
3. Failure to comply with the conditions and procedures related to keeping the Goods in a Designated Zone or moving them to another Designated Zone.
4. Failure by the Taxable Person to issue the Tax invoice or an alternative document when making any Supply.
5. Failure by the Taxable Person to issue a Tax Credit Note or an alternative document.
6. Failure by the Taxable Person to comply with the conditions and procedures regarding the issuance of electronic Tax Invoices and electronic Tax Credit Notes.

New Provisions: Without prejudice to the provisions of the Tax Procedures Law, the Authority shall issue an Administrative Penalty Assessment to the Person and notify the Person of the same within 5 business days from the date of issuance in any of the following cases:

1. Failure by the Taxable Person to display prices inclusive of Tax according to Article 38 of this Decree-Law.
2. Failure by the Taxable Person to notify the Authority of applying Tax based on the margin according to Article 43 of this Decree-Law.
3. Failure to comply with the conditions and procedures related to keeping the Goods in a Designated Zone or moving them to another Designated Zone.
4. Failure by the Taxable Person to issue the Tax invoice or an alternative document when making any Supply.
5. Failure by the Taxable Person to issue a Tax Credit Note or an alternative document.
6. Failure by the Taxable Person to comply with the conditions and procedures regarding the issuance of electronic Tax Invoices and electronic Tax Credit Notes.

Article 77 (Tax Evasions)

Old Provision: If it is proven that a Person who is not a Registrant acquires Goods referred to in Clause (3) of Article 48 of this Decree-Law, claiming that he is a Registrant, he shall be considered as having committed Tax Evasion and shall be subject to the penalties provided for in Federal Law No. (7) of 2017 on Tax Procedures.

New Provision: Without prejudice to the instances of Tax Evasion referred to in the Tax Procedures Law, if it is proven that a Person who is not a Registrant acquires Goods referred to in Clause 3 of Article 48 of this Decree-Law, claiming that he is a Registrant, he shall be considered as having committed Tax Evasion and shall be penalised in accordance with the Tax Procedures Law.

Article 80 (Transitional Rules)

Old Provision: Clause 1: If the supplier receives Consideration or part thereof or issues an invoice for Goods or Services before the Decree-Law comes into effect, the date of supply shall be the same as the effective date of the Decree-Law in the following instances if they occur after the effective date of the Decree Law:

1. ransfer of Goods under the supervision of the supplier.
2. Placing the Goods at the recipient’s disposal.
3. The completion of assembly or installation of the Goods.
4. The issuance of the customs declaration.
5. The acceptance by the Recipient of Goods of the supply.

Clause 3: The Executive Regulation of this Decree-Law shall set forth special provisions related to the implementation of this Decree-Law where a contract has been concluded before the effective date of the Decree-Law but the supply under the contract is wholly or partly made after the effective date of this Decree-Law.

New Provision: Clause 1: If the supplier receives Consideration or part thereof or issues an invoice for Goods or Services before the Decree-Law comes into effect, the date of supply shall be considered to be the effective date of the Decree-Law in the following instances if they occur after the effective date of the Decree-Law:

1. Transfer of Goods under the supervision of the supplier.
2. Placing the Goods at the recipient’s disposal.
3. The completion of assembly or installation of the Goods.
4. The issuance of the customs declaration.
5. The acceptance by the Recipient of Goods of the supply.

Clause 3: The Executive Regulation of this Decree-Law shall determine the provisions for the application of the Decree-Law where a contract has been concluded before the effective date of this Decree-Law but the Goods and Services were supplied wholly or partly after the effective date of this Decree-Law.

Article 83

Old Provision: In case of absence of a special provision in this Decree-Law, the provisions of Federal Law No. (7) of 2017 on Tax Procedures shall be applied.

New Provision:  In the absence of any special provision in this Decree-Law, the provisions of the Tax Procedures Law shall be applied.

Article 79 (BIS): Statute of Limitations-

The Authority may not conduct a Tax Audit or issue a Tax Assessment to the Taxable Person after the expiration of 5 years from the end of the relevant Tax Period, except in the following cases:

1. If he has been notified of the commencement of such Tax Audit's procedures before the expiration of the 5 years, provided that the Tax Audit is completed or the Tax Assessment is issued within 4 years from the date of notification of the Tax Audit. (Clause 2 of article 79)
2. If such Tax Audit or Tax Assessment issuance relates to a Voluntary Disclosure submitted in the fifth year from the end of the Tax Period, provided that the Tax Audit is completed or the Tax Assessment is issued within one year from the date of submission of the Voluntary Disclosure. (Clause 3 of article 79)
3. In the case of Tax Evasion, the Authority may conduct a Tax Audit or issue a Tax Assessment within 15 years from the end of the Tax Period in which the Tax Evasion occurred. (Clause 6 of Article 79)
4. In case of Tax Registration failure, the Authority may conduct a Tax Audit or issue a Tax Assessment within 15 years from the date the Taxable Person should have registered for Tax. (Clause 7 of article 79)

However, the Cabinet may, according to a suggestion by the Minister, issue a Decision to amend the period specified for the completion of the Tax Audit or the issuance of the Tax Assessment as per Clauses 2 or 3 of Article 79.

It has also been mentioned that no voluntary disclosure may be submitted after the expiration of 5 years from the end of the relevant Tax Period.

Clause 8: The statute of limitation outlined in this Article shall be interrupted for any reasons provided in Federal Law No. 5 of 1985, promulgating the Civil Transactions Law or any other Federal law replacing it.

AMCA Insights

These amendments mainly focus on making certain areas more clear to its users. These changes will further assist its users in better interpretation and implementation. It further elaborates and adds on the tax treatment involving reverse charge mechanism, Tax involving charities, and the time limits for tax audits and assessments. It also clarifies the time limit for the submission of voluntary disclosure. All these amendments will lead to a better understanding of the UAE VAT Law.

For further information on any of the amendments or any other VAT-related queries, contact AMCA.