GCC Indirect Tax Weekly Digest
August 11, 2020
FTA suspends reverse charge declaration facility for some taxpayers with overdue amounts
The United Arab Emirates (UAE) Federal Tax Authority (FTA) has suspended the facility to declare Value Added Tax (VAT) under the reverse charge mechanism (RCM) when importing goods into the UAE for some taxpayers with amounts overdue to the FTA.
In a communication sent to affected taxpayers, the FTA stated that in order to reactivate the RCM facility, all overdue amounts must be settled before the end of August 2020 and proof of payment must be sent to the FTA. The FTA will then notify the taxpayer of the bank guarantee value to be submitted to the FTA to reactivate the facility.
VAT amnesty extended to 30 September 2020
The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) has extended to 30 September 2020 the amnesty initiative resulting from the economic impact of the COVID-19 pandemic.
The initiative was originally announced earlier this year and applied to the
period 18 March 2020 to 30 June 2020.
The extension of the initiative means that taxpayers will be exempted from fines for late registration and/or VAT return filing/amendments if all pending obligations and payments are fulfilled no later than 30 September 2020.
GAZT publishes updated Tax Ruling Request guide
GAZT has published updated Arabic and English versions of its Tax Ruling Request guide.
The main changes in the new version include the following:
- Tax Ruling requests can be obtained on Income Tax (including Withholding Tax), VAT and Excise Tax issues;
- The applicant must be the taxpayer, an authorized signatory or an agent applying on behalf of the taxpayer;
- The application must be submitted through the tax portal;
- Additional guidance on the criteria for applying for a Ruling; and
- The guide includes an interactive application form which can be filled in electronically and printed.
Deloitte webinar on tax developments
Deloitte will be holding a virtual tax conference on 18 and 19 August regarding recent tax developments in Oman.
We encourage you to join the webinar, where the Deloitte Oman Indirect Tax team will provide insights and recommendations in light of the recent developments relating to VAT and Excise Tax in Oman.
Please click here to register for the webinar.
In addition, we will continue to bring you real-time updates on the rapid tax developments taking place in Oman.
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.