GCC Indirect Tax Weekly Digest

UAE developments

FTA publishes updated Excise Tax Returns user guide

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published an updated version of its Excise Tax Returns user guide.

The guide, which is intended to help taxpayers navigate the FTA’s e-Services portal when submitting Excise Tax returns, has been updated with additional requirements.

Of particular note to businesses dealing in the new categories of Excise Goods introduced from 1 December (sweetened drinks, electronic smoking devices and tools and liquids used in electronic smoking devices and tools) is a new declaration, EX203D Stockpile Declaration (section 2.1.6 of the guide).

Previously, stockpilers of Excise goods were required to record the Excise Tax liability directly into the Excise Tax return. The updated guidance indicates that EX203D must instead be submitted separately, prior to submission of the Excise Tax return for the tax period. The guide includes details about the process and information required when submitting the declaration.

This will be particularly important for businesses filing their December 2019 Excise Tax return by 15 January 2020 in respect of the new Excise Goods falling within the scope of Excise Tax from 1 December 2019.

In addition, the guidance related to EX203B Lost & Damaged Declaration (section 2.1.5 of the guide) has been updated to reflect that the FTA may request a Destruction Certificate as supporting evidence. Once the FTA requests a Destruction Certificate upon reviewing the EX203B declaration, a new EX203B declaration cannot be submitted until the Destruction Certificate process is complete. Details about the Destruction Certificate submission process are provided in section 2.1.5.1 of the guide.

FTA publishes updated New Residences VAT Refund user guide

The FTA has published an updated version of its New Residences VAT Refund user guide.

The guide details the process whereby UAE nationals may request a Value Added Tax (VAT) refund on certain expenses related to the construction of a new residence in the UAE.

Refunds may be requested via the FTA’s e-Services portal, and the new version of the guide provides details about this process and the required documentation. 

The update replaces the previous manual process, whereby a form and supporting documentation were to be submitted by email to the FTA.

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.