Chinese English

Update on VAT: UAE Announces Provisional Changes

MEDIA / Articles / Update on VAT: UAE Announces Provisional Changes
The Federal Decree-Law No. 18 of 2022 on the Amendment of Certain Provisions of the Federal Decree-Law No. 8 of 2017 on VAT was just announced by the Ministry of Finance (the Amendment Law).

The Federal Decree-Law No. 8 of 2017 on VAT, which shall take effect on January 1, 2023, is modified in several ways by the Amendment Law.

Among the significant changes are the following:
  • Registered persons may request for an exemption from VAT registration if they solely produce zero-rated supplies and don't make (or no longer make) standard-rated supplies.
  • Setting a 14-day window for the issuance of a Tax Credit Note to pay output tax aligns it with the same window for the issuance of Tax Invoices.
  • The Federal Tax Authority (FTA) may forcefully deregister registered persons if it is deemed necessary.
Additional changes have been made to various clauses in order to confirm and clarify their intended meanings.

These changes have been implemented in accordance with the GCC Unified VAT Agreement taking into account international best practices, prior experiences, and difficulties faced by various business sectors.
This article's information is meant to serve as a general introduction to the topic. You should seek specialized guidance regarding your unique circumstances.

Do you wish to stay informed?

Thank you for your interest in Freemont Group, the specialists in company formation, asset protection and legal and advisory . Feel free to contact us with any inquiry you might have. We will provide you with a free initial consultation, and a customized solution for your personal situation.