GCC Tax & Other Regulatory Communique March 2025
1.?UAE VAT UPDATES
E-Invoicing Consultation Paper released
The Ministry of Finance of UAE has released e-Invoicing Programme Consultation paper which was open for consultation until 27 February 2025. The objective of said consultation paper was to gather feedback from the UAE businesses and e-Invoicing Service Providers on the proposed elements of the UAE e-Invoicing Framework, aiming to create a shared understanding of the requirements and help businesses start planning for e-Invoicing adoption. Said consultation seeks to understand the practical requirements of businesses, and in the process, identify any gaps or additional data fields necessary for operational, regulatory, or analytical purposes etc. along with establishing a common understanding of data elements used in e-Invoices across business communities.
Applicability of RCM on Precious Metals and Precious Stones
The Federal Tax Authority ('FTA') of UAE has issued Cabinet Decision No. 127 of 2024 on “Application of RCM on Precious Metals and Precious Stones among Registrants in UAE”. Said Cabinet decision repeals the earlier Cabinet decision No. 25 of 2018 which was applicable only on supplies of gold and diamonds among registered dealers. The scope of RCM has been expanded in latest Cabinet Decision and includes Precious metals, Precious stones (natural and manufactured (synthetic) diamonds, pearls, rubies, sapphires and emeralds) and jewellery made of any Precious Metals or Precious Stones, or a combination, provided that the value of the Precious Metals or Precious Stones exceeds the value of other components. Said decision is effective from 15 February 2025.
Deadlines extended for Tax Assessment Review and Reconsideration Requests
The?Federal Tax Authority (‘FTA’) of UAE has issued Decision on “Cases of Extension of the Deadlines for Accepting the Submission of a Tax Assessment Review Request or a Request for Reconsideration”. As per said Decision, the FTA may approve extension if the delay is due to exceptional circumstances such as serious illness, death of the authorized signatory or close family members, business disruptions beyond control, loss/damage of records due to disaster, system failures etc. However, the extension will be rejected if the delay is caused by the taxpayer’s unawareness of obligations, reliance on a negligent third party, complexity of case or being preoccupied with business operations etc. Said Decision is effective from 01 March 2025.
2.?UAE OTHER REGULATORY UPDATES
Customs Notice in relation to Paper Waste category
Dubai Customs has issued a Notice No. (03/2025) concerning the addition of customs codes for the paper waste category in accordance with the regulations of the Industrial Waste Valorization Policy. Said update follows Customs Notice No. (03/2024) and aligns with Cabinet Decision No. (118) of 2023, which sets the regulatory framework for the valorization of industrial waste. It is to be noted that few new harmonized customs codes have been assigned to paper waste as mentioned in detail in said Notice. Said Notice is effective from 13 February 2025, and any conflicting provisions will be nullified.
3. BAHRAIN VAT UPDATES
VAT Return Submission and Simplified VAT Declaration Form updated guides
The National Bureau of Revenue ('NBR') of?the Kingdom of Bahrain has recently updated the VAT Return Submission Guide and?Simplified VAT Declaration Form Guide. Said updates aim to streamline the VAT return process, providing clear guidelines for both standard and simplified return filings. The VAT Return Submission Guide provides necessary instructions to facilitate while browsing the National Revenue Authority’s electronic portal and the forms to be filled out. The Simplified VAT declaration guide provides the overview of the process of changing/selecting between the two types of VAT declaration, i.e. full declaration and simplified declaration as well as instructions for submission.
4.?KSA OTHER VAT UPDATES
Guidelines on Requesting an Interpretative Decision
The?Zakat, Tax and Customs Authority?('ZATCA')?of KSA has issued a Guide enumerating the procedure for requesting Interpretative Decisions.?It outlines who is eligible to request an interpretative decision, including both registered and non-registered taxpayers, and outlines the necessary procedures for submission. The Guide details the required documentation, conditions under which requests may be accepted or rejected, and the authority's process for evaluating and responding to such requests. It also specifies that interpretative decisions serve as an Authoritative opinion rather than amendments to tax regulations and are not subject to objection by the Applicant.
Guidelines on Advance Pricing Agreements
The?Zakat, Tax and Customs Authority?('ZATCA')?of KSA has issued Advance Pricing Agreements (APA)?guidelines to proactively prevent potential future Transfer Pricing disputes. The Guide offers background information and practical guidance on the procedures and steps required for Taxpayers to apply for an APA with the Authority. It is to be noted that the guide also outlines how APA applications will be processed and represents the Authority's perspective on application procedures. The goal of publishing said Guideline is to minimize any ambiguities for Taxpayers on the implementation and application of APA.?