GCC Indirect Tax Weekly Digest

KSA developments

Customs duty rate increases postponed

The Customs duty rate increases which were set to take effect from 10 June 2020 in the Kingdom of Saudi Arabia (KSA) are understood to be postponed. In spite of this we continue to recommend that businesses assess the impact of these changes so they are well prepared for any developments.

In a post on its Twitter account, Saudi Customs has stated that the duty rate increase has yet to take effect, and that the increase and goods affected will be announced in due time.

For more information about the initial announcement of the rate increases, please refer to Deloitte’s alert.
 

UAE developments

Deadline approaching for Tax Year End adjustments

The deadline to submit Tax Year End adjustments is approaching for businesses in the United Arab Emirates (UAE) who submit quarterly returns and have a Tax Year End of February or March 2020.

This is of particular relevance to businesses that make a mixture of taxable and non-taxable (i.e. exempt or non-business) supplies, which are required to undertake input tax apportionment and capital assets scheme adjustments, as detailed in Deloitte’s recent alert.

For businesses with a Tax Year End of February 2020, the adjustments must be shown in the VAT return for the quarterly tax period ending May 2020, due for submission by 28 June 2020.

For businesses with a Tax Year End of March 2020, the adjustments must be shown in the VAT return for the quarterly tax period ending June 2020, due for submission by 28 July 2020.

Deloitte has a dedicated teams of highly experienced VAT specialists in all of the industry sectors effected by input tax apportionment and the capital asset scheme in the UAE. 

We can assist with calculating Input Tax Apportionment annual adjustments, assessing the suitability of special methods, supporting with special method applications, calculating capital asset scheme adjustments, and reviewing suitability of capital asset registers.

Bahrain developments

NBR launches National Portal VAT payment system

The Bahrain National Bureau for Revenue (NBR) has announced the launch of a new VAT payment service, in cooperation with the Information and eGovernment Authority.

The new system allows VAT payments to be made through the National Portal (bahrain.bh). Taxpayers can view due amounts and make payments through the new system, which comes as part of the NBR’s digital transformation initiatives.

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.