spot_img
HomeUAEUAE announces changes to VAT starting 2023

UAE announces changes to VAT starting 2023

spot_img

ABU DHABI, 31 October – The Ministry of Finance has amended some of the provisions in Value Added Tax (VAT) in the UAE.

The changes will take effect from 1 January 2023.

Among the changes made to Federal Decree-Law No.8 of 2017 on VAT, is the provision that registered persons are allowed to apply for an exception from VAT registration if all of their supplies are zero-rated or if they no longer make any supplies other than zero-rated supplies.

Zero-rated supplies are supplies of property and services that are taxable at the rate of 0 per cent. Some examples of zero-rated items include certain foods and beverages, exported goods, donated goods sold by charity shops, equipment for the disabled and prescription medications and is determined by the taxing authority.

Other changes include setting a 14-day period to issue a tax credit note to settle output tax, in line with the time frame set for issuing tax invoices.

The ministry statement said the Federal Tax Authority (FTA) may forcibly deregister persons in specific cases if deemed necessary.

It also includes 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.

No changes were announced to the VAT rate, which remains unchanged at 5 per cent.

The amendments have been made in line with international best practice 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 the relevant parties, added the statement. — Arabian Business

spot_img
spot_img

Stay Connected

203,149FansLike
2,137FollowersFollow
1,156FollowersFollow

Must Read

spot_img

Related News

- Advertisement -spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here