AMENDMENT IN TAX LAWS UAE has made changes in the value-added tax legislation. The Federal Decree-Law No. 18 of 2022 has amended the Federal Decree-Law No. 8 of 2017 concerning Value added tax rules. The new decree was issued by H.H. Sheikh Mohamed Bin Zayed AI Nahyan (President of UAE) on 26th September 2022 and will come into effect from 1st January 2023.
Things you must take note of: –
An exception to VAT registration is allowed under Article 15 for both registered and non-registered persons. The exception is applicable when the taxable supplies of the registered person are zero-rated or when he doesn’t make supplies except for the zero-rated ones.
The definitions for Tax Evasion, Tax Audit, Tax Assessment Relevant Charitable Activity, Pure Hydrocarbons and Voluntary Disclosure have been added for clarification.
A new article has been added to incorporate the statute of limitations. In case a notice has been issued to audit the taxable person by the FTA, the limitation period of 5years is non-applicable. A taxable person cannot file a ‘voluntary disclosure’ past 5years from the end of the relevant tax period.
Certain supplies have been kept outside the purview of VAT. The FTA is given the power to deregister registered persons in special circumstances.
Under Article 26, the tax invoice must be issued within 14 days from the date of the supply. The setting period of a tax credit note for the settlement of the output tax has also been kept at 14 days.
It is also pointed out by the AMENDMENT IN TAX LAWS that the UAE government has already made an announcement about a new corporate income tax which will take effect from 1st June 2023. Once the Law is ready, we will give an update on that too.
In case you have any queries regarding the new federal decree, give us a call at +971508014003 or contact email@example.com. We, BSB Legal Consultants, have an army of lawyers specially dedicated to taxation matters. Our tax lawyers will navigate complex laws, guide you with the best strategies in hand, and also defend our clients in courts if and when needed. Contact us for a free legal consultation right away!