GCC Indirect Tax Weekly Digest has been saved
GCC Indirect Tax Weekly Digest
January 22, 2020
FTA publishes standard Turnover Declaration Letter template
The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published a standard Turnover Declaration Letter template.
The letter is to be used by businesses applying for Value Added Tax (VAT) registration in the UAE and provides an overview of turnover by month since 2017. The letter is to be printed on the business’ letterhead and signed and stamped before submission to the FTA.
Businesses in the UAE may be allowed or required to register for VAT as follows:
- On a voluntary basis, if their total taxable supplies or taxable expenses in the previous 12-month period, or the total of these amounts anticipated in the next 30 days, exceeds AED 187,500; or
- On a mandatory basis, if their total taxable supplies in the previous 12-month period, or the total taxable supplies anticipated in the next 30 days, exceeds AED 375,000.
The purpose of the Turnover Declaration Letter published by the FTA appears to be for the purposes of tracking exactly when a business exceeded either of these thresholds, in order to better assess the eligibility to VAT registration and the date on which a business ought to have been registered by.
NBR announces annual VAT return period for smaller businesses
There is some good news for VAT registrants with annual supplies of less than BHD 100,000 as they will be able to submit an annual, simplified one-time VAT return. The Bahrain National Bureau for Revenue (NBR) has announced this news following the decision made by the Cabinet during its meeting in December 2019. It is both intended to, and should ease the compliance burden on smaller businesses in Bahrain.
Specific information about the procedures to be followed for the annual VAT filing will be released in future by the NBR.
VAT expected to be introduced in Oman in 2021
In a recent and wide ranging interview for Bloomberg T.V. discussing the Oman economy, Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry in Oman, stated that VAT would be introduced in Oman in early 2021. The minister also mentioned that “VAT is something people don't like but is something we have been lobbying for.”
Assuming this latest statement is correct, any business in Oman should take note that VAT could be introduced within 12 months and need to ensure that they are ready. Preparing for VAT for all businesses requires time and planning and VAT has an impact on more than just the finance function.
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.