GCC Indirect Tax Weekly Digest

March 18, 2022

UAE developments

Application period now open for VAT refunds for foreign businesses in the UAE

As of 1 March 2022, the reclaim window is open for qualifying non-United Arab Emirates (UAE) established businesses to submit their Value Added Tax (VAT) refund requests to the Federal Tax Authority (FTA) for the 2021 calendar year.

During the period of 1 March 2022 until 31 August 2022, the FTA will accept refund applications for the UAE VAT refund for the Foreign Business scheme. Non-UAE resident businesses should now consider whether they have incurred VAT in the UAE and qualify for a refund. The documentation and evidentiary requirements for such a claim are stringent; therefore early action is recommended.

We are also aware that the FTA is currently revisiting prior years’ refund claims. In some instances, the FTA is requesting for further information on previously stalled claims, which may present an opportunity toobtain approval.

With that being said, businesses that have made unapproved claims in prior periods should check whether they have received any recent email correspondence from the FTA (any request should have been sent to the authorized contact at the time of the original claim). Nevertheless, the FTA is providing deadlines for response to further information.

For more details about the eligibility/documentation requirements
for the refund scheme, please refer to Deloitte’s alert.

Our UAE Corporate Tax webpage is now live

We are pleased to launch a new webpage dedicated to the implementation of Corporate Tax (CT) in the UAE.

The content provides guidance during this transitional period and includes direct access to our materials ranging from our alert regarding the initial announcement from the FTA, a recording of our recent UAE CT webinar, an FAQ document with the most asked questions, the Deloitte go-to CT contacts and more. This webpage will be updated as we develop new materials and new information is released by the authorities.

Click here to visit the webpage.


Oman developments

Expansion of list of zero-rated food items

The Chairman of the Oman Tax Authority (OTA), through Decision No. 89/2022 dated 13 March 2022, has expanded the list of zero-rated food items under VAT, to include: barley, corn, wheat, soybeans, cotton seeds, coconut or copra, and poultry food.

The products which are eligible for zero-rating are classified as per the Harmonized Code of Oman Customs tariff. This Decision is available in Arabic on this link

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.

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