GCC Indirect Tax Weekly Digest
December 8, 2020
FTA publishes guidance on stock reporting requirements for Excisable goods
The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published two new Excise Tax guides. The guides relate to Excise stock movements for warehouse keepers who are and are not registered for Excise Tax.
The guides are intended to assist with navigating the FTA’s e-Services portal to submit the relevant declarations for registered and non-registered warehouse keepers to declare the Excise Goods they hold in the Designated Zones (DZs) that they manage from 1 January 2021.
Warehouse keepers who are registered for Excise Tax are required to submit the Opening Stock Declaration (EX204) between 1 January 2021 and 31 January 2021. They must declare the opening stock of Excise Goods belonging to registered Excise Taxpayers in their DZ(s) and should submit the declaration once for each TRN holder.
Warehouse keepers who are not registered for Excise Tax are required to complete the following:
- Declare the Excise stock held in their DZ by owners who are registered for Excise Tax by submitting EX204;and
- Declare the Excise stock held in their DZ by owners who are not registered for Excise Tax by submitting the Non-Registered Excise Stock Movement Declaration (EX204A) in each period from 1 January 2021.
In addition to the requirements set out in these guides, we are aware that the FTA has been contacting Excise taxpayers directly to inform them about additional stock reporting requirements, including the requirement to appoint a certified external auditor to audit the Opening Stock as of 1 January 2021 in each DZ per Excise Tax registrant.
E-invoicing required by 4 December 2021
The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) has issued the final electronic invoicing (e-invoicing) regulations in Arabic on 4 December 2020, setting out that it will be mandatory for resident taxpayers to be fully equipped to issue, save and modify e-invoices by 4 December 2021.
The regulations specify the terms, requirements and conditions related to electronic invoices and electronic credit and debit notes. That said, the exact type of e-invoicing system is yet to be formally published; we expect to see this in the New Year.
It is important to note that the e-invoicing regulations will attract all the provisions related to a tax invoice in the VAT legislation, and any non-compliance will result in penalties from GAZT.
The regulations also note that in addition to these regulations and the VAT legislation, the provisions relating to proof of electronic transactions and electronic signatures provided for in the Electronic Transactions Law in force in KSA shall apply to electronic invoices and notes issued.
Along with the regulations, GAZT has also published an e-invoicing guide and FAQs in Arabic.
Oman virtual VAT academy
With the implementation of Value Added Tax (VAT) in Oman starting from 16 April 2021, companies active in the Financial Services (FS) industry are expected to experience a significant impact on their business operations. The FS industry is subject to special rules, which have been outlined in the VAT legislation, and are expected to lead to additional complexities for the industry. Bearing in mind the penalty regime as per the new legislation, it is essential for businesses to understand the application of these rules in order to reduce the risk of non-compliance and also effectively manage their VAT position.
Deloitte’s indirect Tax practice will therefore dedicate the fifth session of the Oman virtual VAT academy to the FS industry. The session will be held on Tuesday, 15 December, 2020 and will discuss how VAT interacts with companies within the FS industry and what the likely industry issues businesses will face in preparation for entry into the VAT system. For full details and to register your interest, please click here.
Additionally, Deloitte has a dedicated team of VAT experts who can help your business navigate this tax reform by ensuring you understand the impact of all requirements, and provide practical, effective implementation support. Get in touch now – once again if you need input please contact Shaishav Udani, A. S. Saicharan or Sunita Taijwani.
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.