GCC Indirect Tax Weekly Digest

UAE developments

Cigarettes without Stamps not permitted to be supplied in UAE from 1 August 2019

In line with the timeline of the Digital Tax Stamps (DTS) scheme in the United Arab Emirates (UAE), from 1 August 2019, it will no longer be permitted to hold out for sale, import, or produce cigarettes anywhere in the UAE unless they carry a compliant Stamp.

This follows the publication in December 2018 of Federal Tax Authority Decision No. (3) of 2018 on Implementing the Marking Tobacco and Tobacco Products Scheme, which set out the timelines applicable to the implementation of the DTS scheme, and the publication in May of Cabinet Decision No. (33) of 2019 on Administrative Penalties for Violations of Procedures related to the Implementation of Marking Excise Goods. This Decision sets out significant penalties for non-compliance with the DTS scheme, ranging from AED 20,000 to AED 50,000 per incident, with the full force of the penalties applying from 1 August 2019.

Bahrain developments

NBR publishes VAT return modifications manual

The Bahrain National Bureau for Revenue (NBR) has published a manual on Value Added Tax (VAT) return modifications. The manual provides taxable persons in Bahrain with an overview of the process of making adjustments, corrections, and self-amendments to a VAT return.

Further, the manual provides an overview of NBR VAT assessments, whereby the NBR may audit businesses’ general compliance with the Bahrain VAT legislation and determine if they are paying or recovering the correct VAT amounts.

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.