GCC Indirect Tax Weekly Digest

FTA publishes new Cabinet Decisions granting special VAT treatment to certain industries

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published two recently approved Cabinet Decisions on the Value Added Tax (VAT) treatment of gold and diamonds, and exhibitions and conferences.

Gold and Diamonds

Cabinet Decision no. (25) of 2018 relates to the VAT treatment of the supply of non-investment gold, diamonds and any product where the principal component is non-investment gold or diamonds (the “Product”).  

The decision would apply only to commercial transactions between registered dealers.  Where a registered dealer supplies the Product to a tax registered recipient who intends to resell the Product, or use it to manufacture the Product, the dealer may not be liable for VAT.  To apply this treatment the recipient must account for the VAT due via the reverse charge mechanism and issue the required written declaration to the supplier. 

The decision is effective from 1 June 2018. 

Exhibitions and Conferences

Cabinet Decision no. (26) of 2018 relates to VAT charged on certain supplies relating to exhibitions, conferences, and related services.  It is effective immediately.

According to the decision, the supplier of exhibition and conference services shall, in certain cases, not be required to collect VAT from customers who are not established in UAE and are not VAT registered / required to be registered in the UAE.  The supplier will instead declare the output tax on its VAT return and may claim a corresponding refund on its VAT return where the relevant conditions are met.

A user guide has been published for suppliers of these services along with a declaration form, organizer form and space supplier form.

Please contact Mark Junkin or your usual Deloitte contact to understand how these decisions may impact on your business.

FTA releases new user guide on Tax Agents and Tax Agencies

The FTA has released a user guide on Tax Agents and Tax Agencies.  The guide provides detailed guidance on the criteria for becoming a Tax Agent or Tax Agency.

The guide also provides procedures for the following: 

• enrolling on the FTA e-services portal as a Tax Agent or Tax Agency;
• linking and de-linking process for Tax Agencies, Tax Agents and Taxable Persons; and
• process for amendment.

 The guide also provides a detailed explanation on how to complete the related forms.

FTA issues decision on tax invoices

This week the FTA published Decision no. (3) of 2018 which provides that a supplier may choose not to include the physical address of the recipient of its supply on the corresponding tax invoice / credit note, provided the mailing address of the recipient is mentioned on the tax invoice.

Please note that this digest is for information purposes only and should not be construed as an 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.