GCC Indirect Tax Weekly Digest

KSA developments

VAT amnesty and Customs self-correction scheme expiring on 30
September

The Kingdom of Saudi Arabia (KSA) Value Added Tax (VAT) amnesty will expire on 30 September 2020; therefore we urge clients and taxpayers to take action now with respect to progressing any amendments, late registrations or corrections to previously submitted VAT returns. Given the recent increase in the VAT rate, now would be an opportune moment to ensure that July and August VAT returns are in conformity with the laws.

In addition, the Voluntary Disclosure Program (VDP) for Customs which was originally announced on 1 January 2020 as a six-month window for importers to correct past Customs records without penalties was recently extended to 30 September 2020.

This is a prime opportunity for importers to correct any under-declared import and dutiable values, misclassified goods where lower duties were paid and or non-compliance with exemption conditions – importers will only be required to settle the underpayments that are due.

We would be pleased to discuss the likely impact and issues that you may need to deal with. With the end of the VAT amnesty and Customs VDP being only 3 weeks away, there is a limited timeframe to ensure all measures are considered and we urge that prompt action be taken in this regard.

UAE developments

FTA launches app to verify legality of tobacco products

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has announced in a press release that it has launched a new app which allows users to verify that tobacco products are compliant with the Digital Tax Stamps (DTS) scheme.

The app allows users to scan the stamp on the tobacco product packaging to verify that it is legitimate, and includes a feature to report non-compliant products from within the app.

The DTS scheme is intended to regulate the sale of tobacco products and avoid tax evasion and the illegal trade of these products.

Oman developments

VAT Law progress

The VAT Law in Oman is now, as we understand, at the final stage of the legislative process and the State Council has sent the law to the Sultan for his approval.

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.