GCC Indirect Tax Weekly Digest

KSA developments

GAZT updates guidance on appointed directors

The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) has updated its Economic Activity and Employee Benefits guidelines in accordance with its recent announcement that members of boards of directors are not considered taxable persons in their capacity as directors, and the remuneration paid to them is not subject to Value Added Tax (VAT) in KSA.

Section 5.1 of the Economic Activity guide has been amended in light of the new policy and states that members of boards of directors (or appointed members of similar bodies) are not considered by GAZT to be independent of the organization and are not considered to be carrying out an independent economic activity in their capacity as directors.

Section 3.2 of the Employee Benefits guide has also been amended to set out this position.

The Economic Activity guide further states that such persons are not considered taxable persons when carrying out their appointed role and should not register for VAT, charge VAT, or raise VAT invoices for these activities.

However, the guide notes that if the same person also carries out an independent activity, such as independent consulting services, a registration obligation may arise.

GAZT updates guidance on invoicing language requirements

GAZT has updated the language requirements in the English version of its Invoicing and Records guide. The requirements were previously updated in the Arabic version of the guide.

Tax invoices in KSA must be issued in Arabic (in addition to any other language shown as a translation), with Arabic considered the definitive information on the invoice.

However, the updated guide allows for certain information to be shown in a ‘Western’ or ‘Romanized’ format as part of the definitive Arabic portion of the invoice. Section 4.2.1 of the guide provides details and examples of what is allowed.

UAE developments

FTA reiterates DTS timeline and requirements

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has issued a press release reiterating the timeline and requirements of the Digital Tax Stamp (DTS) scheme, which is intended to monitor Excise Tax compliance and combat the illegal trade of tobacco products in the UAE.

The FTA noted that from 1 May 2019, importing any type of cigarettes not bearing stamps will be banned, and from 1 August 2019, selling, distributing, or manufacturing any unmarked cigarette products will be banned in the UAE.

Two different types of stamps are to be used, with red stamps required on domestic and inbound duty-free cigarette products, and green stamps required on outbound duty-free cigarette products.

Oman tax seminar

Deloitte to hold Oman tax seminar on 1 May 2019

Deloitte will be holding a comprehensive tax seminar in Muscat, Oman on Wednesday, 1 May 2019. The aim of the event is to discuss the unprecedented changes that are taking place in the regional and local tax arena with a main focus on the recent tax reforms in Oman.

The seminar will address recent VAT developments and their potential impact on businesses, and the introduction of Excise Tax in Oman. Further, developments related to direct, corporate, withholding, and international tax in Oman will be discussed. The event will include a Q&A session.

Event details

Date
Wednesday, 1 May 2019.

Time
08:30am until 12:30pm, followed by lunch.

Venue
To be shared in the confirmation email.

Fee
60 OMR per participant.

Registration

To register as an attendee, please follow this link.

If you wish to send us your list of questions before the event, please get in touch.

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.