GCC Indirect Tax Weekly Digest

UAE developments

FTA publishes updated version of VAT Refunds for Business Visitors guide

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published an updated version of its guide on Value Added Tax (VAT) refunds for business visitors.

The list of eligible countries has been updated to include “Korea”, which is understood to refer to the Republic of Korea (South Korea).

The VAT refund scheme for business visitors allows foreign businesses to recover the VAT on certain expenses incurred in the UAE, subject to certain conditions.

The scheme is open to businesses which meet the following criteria:

• No place of establishment or fixed establishment in the UAE;
• Not a taxable person in the UAE;
• Not carrying on a business in the UAE; and
• Carrying on a business and registered for VAT (or equivalent) overseas.

The deadline for submitting claims for VAT paid during 2018 has now passed, and the claiming period is not yet open to submit refund claims for the 2019 calendar year. However, non-resident businesses should ensure they consistently monitor the UAE VAT paid during the course of the year in order to ensure compiling and submitting claims is as straightforward as possible once the next refund window opens.

Deloitte has a team of VAT specialists in the region who can assist you through the process. For more information, please speak to your usual Deloitte contact or any of the team listed below.

KSA developments

GAZT publishes guide on Excise Tax registration and Tax Warehouses

The Kingdom of Saudi Arabia (KSA) General Authority for Zakat and Tax (GAZT) has published a new guideline on Excise Tax in relation to Excise Tax registration and licensing of Tax warehouses. The guide is currently published in Arabic only.

The guide describes the process of registration, including amendments to an existing registration or a deregistration, and the administration requirements and obligations for an Excise Registrant.

The guide also provides information on Excise Tax suspension arrangements, and details the process for obtaining and maintaining a Tax Warehouse licence for each facility where goods are held in suspension.  Additionally, the guide discusses the requirements for movement of goods under Excise Tax suspension, and in cases of loss of Excise goods from a Tax Warehouse.

Deloitte has a team of Excise Tax specialists in the region who can assist you through the process of preparing for the expansion of Excise Tax in KSA to cover sweetened drinks and e-cigarettes, as well as managing your ongoing Excise Tax compliance obligations. For more information, please speak to your usual Deloitte contact or any of the team listed below.

Oman developments

New Tax Authority established

The Oman Secretariat General for Taxation (SGT) no longer exists and has been replaced by a new tax authority.

As per Royal Decree 66/2019, published in the Gazette on 20 October 2019, a new body called the Tax Authority shall replace the existing SGT and report directly to the Council of Ministers. The new Tax Authority will be led by HE Sultan Al Habsi.

This announcement sends a clear statement that taxes in Oman are becoming more important and businesses need to ensure compliance and be ready for the introduction of new taxes as they occur. The next tax expected to be introduced in Oman is VAT and we hope that the new Tax Authority will be able to release some more information on the expected timelines so businesses can be prepared.

If you wish to discuss further, please get in touch with the Oman Indirect Tax Team or your usual Deloitte contact.

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.