GCC Indirect Tax Digest - 19 August 2022

This is the GCC Indirect Tax Digest, reporting news of Indirect Tax developments in the Middle East region on a bi-weekly basis. The digest is also available in Arabic on the following?link .

UAE developments

31 August deadline for foreign business VAT refund applications

The deadline to submit applications for foreign business Value Added Tax (VAT) refunds relating to expenses incurred in the United Arab Emirates (UAE) in the 2021 calendar year is 31 August 2022. As such, businesses eligible to apply which have not yet done so should take urgent action to complete the application requirements before the deadline.

The Federal Tax Authority (FTA) has published a guide setting out the process and requirements for foreign business refunds. In particular, businesses should give consideration to requirements relating to attestation, delivery of hard copies, and demonstrating proof of payment, and allocate sufficient time to have all the required documents ready and provided to the FTA before the deadline.

Further, businesses should begin preparing from now and ensuring that they are obtaining the necessary documentation for the refund application relating to expenses incurred in the 2022 calendar year, for which the application period will be 1 March 2023 – 31 August 2023.

For more information about the foreign business refund scheme and how Deloitte can assist you with the application process, please email any of the contacts below or your usual Deloitte contact.

Oman developments

Digital Tax Stamps for Excisable products

The Oman Tax Authority (OTA) will introduce Digital Tax Stamps as?a mandatory requirement for the sale, trading and import of goods subject to the local Excise Tax.?

The OTA has issued a document in Arabic giving guidance, in particular on the methodology to create Digital Tax Stamps and timelines for implementation. This new system is being implemented in phases, starting with tobacco products:

• 30 June 2022: since the end of June this year local manufacturers and importers of excisable products have been able to request original manufacturers to include Digital Tax Stamps on tobacco packaging;
• 14 October 2022: no tobacco products without Digital Tax Stamps will be allowed entry into Oman henceforth; and
• 1 February 2023: no products subject to Excise Tax without Digital Tax Stamps may be sold, traded or imported into Oman from this date.

Increase in tax revenues

The Oman Ministry of Finance recently reported budget, public finance and tax revenues data for the first half of 2022.

We understand that total revenues from Value Added Tax (VAT) stand at OMR 345m (USD 895m), with estimated total budgeted revenues from VAT likely to run to OMR 450m (USD 1,168m) for the full year. This compares to total reported VAT collections in 2021 of OMR 301m (USD 781m). (VAT was introduced on 16 April 2021.)

Corporate Income Tax (CIT) revenue increased by 23.3% in the first half of this year compared to the same period last year; Excise Tax revenues?were at OMR 48m (USD 124m) through mid-2022.

The OTA continues to focus on fostering better tax compliance amongst taxpayers – businesses need to focus resources on complying properly with the rules and ascertaining and discharging tax liabilities correctly in a timely manner.?

Deloitte Customs and Global Trade academy

Module 1: Key fundamentals impacting your business

The Deloitte Indirect Tax team is pleased to announce the launch of its Customs and Global Trade academy. The first module of the academy will be held in-person in both the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) in September 2022. The sessions will be conducted in English and Arabic dependent on the location. The full academy details, including the dates per location, are listed below.

Academy objective

Customs and Global Trade requirements have been rapidly evolving across the Gulf Cooperation Council (GCC). This academy is intended to help affected businesses understand the likely scope and scale of these requirements, and what changes might be necessary to accommodate them. It will also provide an opportunity for professionals to network with industry peers.

Module 1 – Topics

The first module of the academy will focus the key fundamentals impacting businesses in the GCC and will cover the following areas:

• Introduction to Customs in the GCC
• Harmonized System (HS) Code/Tariff Classification
• Preferential/non preferential origin
• Customs valuation
• Customs audits and dispute processes
• Export controls and sanctions

Please note that this is a paid event and at the end of the training session you will be awarded a participation certificate. The full academy details are listed below. We look forward to having you at the academy.

Additional details

Dates

• 8 September 2022 | Location: Dubai, UAE | Training in English
• 14 September 2022 | Location: Riyadh, KSA | Training in Arabic
• 15 September 2022 | Location: Riyadh, KSA | Training in English

Venue

The venue per location and date will be communicated in the confirmation email.

Fee

The cost to attend this training is 2,500 AED + VAT (2,500 SAR + VAT) and covers all training materials and meals.

Payment details

Once registered, an invoice will be shared with each participant which includes the payment details.

Registration

Please register your interest on the following link

Duration and agenda?

Note:?This digest is for information purposes only and should not be construed as an 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.?