SKP Group
SKP GCC VAT Alert
24 November 2017
Abdul Aziz Al Ghurair, chairman of the UBF and CEO of Mashreq, on Wednesday called for deferring the implementation of the Value Added Tax (VAT), which is scheduled to be implemented from 1 January 2018. He said, “We need at least 6 months after the issuance of the executive regulation, provided that the measures for online implementation have been finalised”.
 
Source: Khaleej Times 23 November 2017


President and CEO of Dubai Chamber of Commerce and Industry (DCCI) expresses concerns over VAT implementation in 2018
The president and CEO of DCCI, Hamad Buamim told a newspaper agency, Emarat Al Youm that un-readiness of a large number of small and medium-sized enterprises (SMEs) poses a challenge to put VAT into effect early 2018. He also stated that accounting and auditing systems are not ready to impose VAT on SMEs. Buamim affirmed that VAT implementation has positive effects on the local economy and will not weigh on Dubai’s competitiveness as an attractive investment hub.  

Source: Mubasher 21 November 2017


VAT would not be imposed on selling used cars between individuals 
The Director-General of UAE’s Federal Tax Authority (UAE-FTA), Khaled Ali Al Bustani, told to a newspaper agency Al Bayan that VAT would not be imposed on selling of used cars between individuals. However, the tax will be imposed on the sale of used cars if the seller has an official business and is registered with the FTA. 

Source: Mubasher 20 November 2017

 
Federal Tax Authority clarifies on taxability of residential and commercial property
The UAE’s Federal Tax Authority (FTA) has clarified that commercial real estate will be subject to the 5% VAT, with residential units largely exempt. FTA also added that the owners of residential buildings do not need to register for VAT if they have no other business activities.
 
Source: Arabian Business 19 November 2017

 
All food products to be taxed under UAE Law
The Director-General of the Federal Tax Authority, Khalid Al Bustan has confirmed that all food products in the UAE are going to be subject to tax when the nation introduces its 5 % Value Added Tax (VAT) on 1 January 2018.

Source: Shortlist Adu Dhabi 9 November 2017


Did you Know?
Tourists to the UAE would be able to claim back the VAT on purchases they make whilst visiting the country. However, the detailed procedure for claiming the refund is not yet prescribed.
 
Source: Gulf News 8 November 2017
The Kingdom of Saudi Arabia

VAT would also be imposed on petrol
Saudi Arabia's GAZT addressed an online question about VAT rate for petrol. The reply confirmed that the standard Value Added Tax of 5% will be applied to purchasing petrol.

 
Source: Gulf News 19 November 2017


General Authority for Zakat and Tax (GAZT) signs agreement with government agencies to implement VAT
The GAZT will sign a cooperation agreement with the Ministry of Municipal and Rural Affairs to facilitate the compliance of businesses on Valued Added Tax (VAT). Similar agreements would also be followed with the Ministry of Labor and Social Development and Saudi Customs. Through these agreements, GAZT seeks to encourage businesses to register and achieve readiness ahead of the launch of
VAT.

Source: GAZT dated 18 November 2017
 


Did you Know?
All companies, businesses or entities which make an annual taxable supply of goods and services in excess of SAR 375,000 are mandatorily required to register for VAT by 20 December 2017.

However, all taxable persons whose annual taxable supplies exceed the mandatory Registration threshold, i.e. SAR 375,000 but do not exceed SAR 1,000,000 will be exempted from the requirement to register until 20 December 2018.

Source: Official website for VAT in the Kingdom of Saudi Arabia
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