UAE announces changes to VAT provisions

The amendments — set to take effect on January 1, 2023 — were made in line with international best practices, in light of the GCC Unified VAT Agreement

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By Wam

Published: Fri 28 Oct 2022, 3:55 PM

Last updated: Fri 28 Oct 2022, 6:13 PM

The UAE Ministry of Finance announced amendments to some provisions of the Federal Decree Law No. 8 of 2017 on Value Added Tax (VAT), which will be effective from January 1, 2023.

Under the changes, registered individuals who make taxable supplies will be allowed to apply for an exception from VAT registration — if all their supplies are zero-rated. They may also be eligible if they no longer make supplies other than zero-rated ones.

The Federal Tax Authority (FTA) may forcibly de-register registered individuals in specific cases if deemed necessary.

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The amendment also included provisions that set a 14-day period for the issuance of a tax credit note to settle output tax.

These were some of the major amendments introduced by the Federal Decree-Law No. 18 of 2022 on the Amendment of Some Provisions of the Federal Decree-Law No. 8 of 2017 on VAT.

The new provisions were made in line with international best practices, in light of the GCC Unified VAT Agreement. They are based on past experiences, challenges faced by various business sectors as well as the recommendations received from relevant parties.

The decree-law also included amendments to certain provisions to clarify and confirm the intended meaning of the text; to rephrase; or to improve the legislative sequence of legal provisions.

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Wam

Published: Fri 28 Oct 2022, 3:55 PM

Last updated: Fri 28 Oct 2022, 6:13 PM

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