GCC Indirect Tax Weekly Digest

Bahrain NBR reveals VAT return format

Bahrain developments

NHRA publishes circular on zero-rated medical devices

The Bahrain National Health Regulatory Authority (NHRA) has published a circular stating that medical devices are zero-rated for VAT. The circular includes a list of medical devices which the policy applies to.

The NHRA previously published a circular which indicated that registered medicines and approved health products are zero-rated.

Businesses in the healthcare sector should familiarize themselves with the healthcare goods that are zero-rated, and ensure that they apply the correct VAT treatment to their supplies to avoid significant penalties for non-compliance.

Deloitte can provide comprehensive transaction mapping services to determine the VAT treatment of a business’ supplies and purchases in accordance with the Bahrain VAT legislation.

UAE developments

Expo 2020 participants eligible for VAT refunds

The United Arab Emirates (UAE) Cabinet has issued a Decision (Cabinet Decision No. 1 of 2019) which sets out that official participants in Expo 2020 may claim a refund of the VAT paid on the import or export of commodities and services relating to their participation in Expo 2020, subject to certain conditions.

The Decision is not currently available on the Federal Tax Authority (FTA) website.

Official participants are defined as all countries and international government organizations participating in Expo 2020 as exhibitors on a non-commercial basis.

In order to obtain a refund, a refund application is to be submitted to the Expo 2020 Office. The FTA or Expo 2020 Office may conduct inspections or request further information as part of the application process.

The Decision states that Implementing Decisions will be issued to put the necessary mechanisms in place.

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.