GCC Indirect Tax Weekly Digest

KSA GAZT publications

Oil and Gas VAT guide (English)

The Kingdom of Saudi Arabia (KSA) General Authority of Zakat and Tax (GAZT) has published the English version of its Oil and Gas VAT guide. The guide was previously published in Arabic.

The guide defines terms that are not defined for VAT purposes in the GCC VAT Agreement or KSA VAT legislation, such as ‘oil,’ ‘gas,’ and ‘pipeline distribution system.’

The guide also clarifies the rules applicable to supplies of oil and gas in various cases, including:

• the place of supply when supplying oil and gas with or without a pipeline distribution system;
• the VAT treatment of imports and exports of oil and gas, including when the supply takes place before or after import or export clearance; and
• special rules applicable to a supply of goods to or within a Customs Duty Suspension regime.

Further, the guide includes sections addressing the VAT treatment of upstream, midstream, and downstream activities within each sector area.

UAE developments

FTA publishes user guide on VAT refunds for non-registered importers

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published a user guide, dated August 2018, to assist non-registered importers with submitting a request to:

• liquidate partially or completely an eGuarantee; or
• refund partially or completely an eDirham deposit provided while importing goods under tax suspension.

These requests can submitted through the VAT 702 form on the FTA portal.

The guide details the circumstances and eligibility criteria for importers to submit the form, and also includes step-by-step instructions for doing so on the FTA portal.

Unmarked cigarette products banned from import into UAE as of 1 May 2019

In accordance with the timeline set for the Digital Tax Stamp (DTS) scheme, from 1 May 2019, Designated Excise Goods (defined as ‘all types of cigarettes’) which are not marked in compliance with the DTS may no longer be imported into the UAE.

The DTS will enter its final phase on 1 August 2019, at which point unmarked Designated Excise Goods may not be sold anywhere in the UAE.

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.