GCC Indirect Tax Weekly Digest


GCC Indirect Tax Weekly Digest

October 21, 2020

Oman developments

Oman: VAT Law now published in the Official Gazette

Following the announcement of implementation of VAT in Oman earlier last week, the government has now published the Oman VAT Law (‘’the Law”) in Arabic in the Official Gazette No. 1362 dated 18 October 2020. As per the Law, VAT would come into effect from 16 April 2021. The Law acts as a basis for implementation of VAT and stipulates certain principles, which must be followed by businesses in Oman. As we understand, the Law is in conformity with the GCC VAT Framework Treaty; and certain sectors/transactions are to be exempted or zero-rated like: financial services, education services, healthcare services, transportation, etc. More details are excepted in the Executive Regulations, which are likely to be released in two months from now.

UAE developments

FTA introduces new version of eDirham system

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has announced the
introduction of a new version of the eDirham system to pay taxes in the UAE.

The new system will take effect from November 2020, with a transition phase taking place through October 2020, after which the old version will no longer be available.

The FTA states that the new version of the eDirham system provides more options, is easier to use, and adheres to higher safety standards.

Deloitte Indirect Tax Consumer Business webinar on 3 November 2020

The last few months have seen significant economic and social disruption, and in particular the Consumer Business sector has been affected as supply chains and customer habits have been impacted. In addition, the UAE FTA has increased audits and scrutiny of business’ tax compliance.

Please join us for our upcoming Indirect Tax Consumer Business webinar which will take place on Tuesday, 3 November 2020 at 12:00 pm (UAE time).

In our upcoming webinar, our team of UAE Indirect Tax specialists will explore the following topics of particular concern to the Consumer Business sector:

  • The VAT implications of staff accommodation arrangements;
  • Recent legislative changes impacting the VAT treatment of the export of services;
  • VAT Designated Zone rules and common supply chain issues;
  • The VAT implications of promotions, discounts, and rebates;
  • The tax disputes and appeals process; and     
  • Customs Duty updates.

Please click here to register. We look forward to having you join us.

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.

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