GCC Indirect Tax Weekly Digest

UAE developments

FTA publishes new Public Clarification (VATP012)

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published a new Value Added Tax (VAT) Public Clarification on the importation of goods by agents on behalf of VAT-registered persons (VATP012).

VATP012 addresses situations where a VAT-registered agent imports goods on behalf of the VAT-registered owner of the goods. As the importing agent would have provided their own TRN at the time of importation, the VAT amount would be automatically populated in Box 6 (goods imported into the UAE) of the agent’s VAT return.

There would therefore need to be adjustments made to both the VAT return of the importing agent and that of the owner of the goods.

The Public Clarification provides two options for making this adjustment:

1. The importer and owner both make an adjustment in Box 7 of the VAT return (adjustments to goods imported into the UAE) for the value of the imported goods (negative for the importer and positive for the owner), and the owner recovers the import VAT declared in Box 7 in Box 10 (supplies subject to the reverse charge provisions); or
2. The importing agent issues a statement to the owner compliant with Article 50(7) of the UAE VAT Regulations, which acts as a tax invoice allowing the owner to recover the input tax in Box 9 of the VAT return.

Note that in option 1, the owner and importing agent must agree in writing to make the adjustments, and both parties must retain this agreement in addition to customs documentation.

KSA developments

GAZT publishes VAT guide on retail sector (Arabic)

The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) has published a VAT guide on the retail sector in Arabic.

The guide addresses the VAT implications of a wide range of situations that consumer businesses in KSA may face, including (but not limited to):

• Setting retail prices and discounts;
• Supplying multiple goods/services for single consideration;
• Zero rating eligible medical goods and exports;
• Adjustments to consideration (e.g. retrospective discounts and bad debts);
• Nominal supplies (e.g. free goods and samples);
• Vouchers/loyalty programs; and
• Special cases (e.g. used goods, e-commerce, and sales agents).

The guide is important for any business in KSA which makes retail supplies. Affected businesses should ensure that their pricing and supply arrangements are in line with the new guidance.

Bahrain developments

NBR publishes VAT return filing manual

The Bahrain National Bureau for Revenue (NBR) has published a VAT return filing manual.

The manual provides an overview of the rules and procedures relating to the VAT return process, and also provides guidance on navigating the NBR portal to file VAT returns and make VAT payments / claim VAT refunds.

The manual also provides details on available options for making payments to the NBR and instructions for each option.

Oman developments

Transitional Excise Tax return deadline extended

The Oman Secretariat General for Taxation (SGT) has indicated that the deadline for filing the transitional Excise Tax return, originally set at 30 June 2019, has been extended by 15 days. The transitional return is due for businesses that held any stock of Excise Goods on the introduction of the Excise Law on 15 June 2019.

The format of the transitional return and the exact details required have not yet been made public. However, businesses should look to the import declaration form to determine the information that SGT will require.

It is still not clear how payments of Excise Tax due are to be made, and whether this extension to the deadline for the return will also apply to payments.

Other updates:

• The Excise Regulations have not yet been released; the Excise Law states that the Regulations will be released “within six months from the date of enforcement” of the Law.
• The SGT website is being updated on a regular basis and businesses are advised to check it for further updates, however Deloitte will keep you informed and updated on future major developments as usual.

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.