VATP030

Issue

Value Added Tax ('VAT') in the UAE is regulated by the Federal Decree-Law No. 8 of 2017 on Value Added Tax ('Decree-Law'). The Federal Decree- Law No. 18 of 2022 on the Amendment of Some Provisions of the Federal Decree-Law No. 8 of 2017 on Value Added Tax has been issued, which amends or updates several articles of the Decree- Law and takes effect on 1 January 2023.

Summary

The following Articles of the Decree-Law have been amended:

– Article 1 on Definitions, including the insertion of new definitions.

– Article 5

– Article 7

– Article 13

– Article 15

– Article 21

– Article 26

– Article 27

– Article 30

– Article 33

– Article 36

– Article 45

– Article 46

– Article 48

– Article 55

– Article 57

– Article 61

– Article 62

– Article 65

– Article 67

– Article 74

– Article 76

– Article 77

– Article 80

– Article 83

A new Article 79 bis has also been inserted in the Decree-Law on Statute of Limitation. This Article is further clarified in this Public Clarification.

The list above does not include Articles where the translation to English has been enhanced.

This Public Clarification is specifically intended to inform persons of the changes in the VAT Decree- Law, in relation to the main amendments as effective from 1 January 2023:

1. New definitions (Article 1)

2. Exception from registration for persons already registered for VAT (Article 15)

3. Deregistration initiated by the FTA (Article 21)

4. Place of supply of goods when the date of supply is determined under Article 26(1) of the Decree-Law (Article 27)

5. Clarifying the place of residence of the principal where its agent regularly negotiates and contracts in favour of the principal, or regularly maintains inventory of the principal to fulfill supply arrangements (Article 33)

6. Value of supply and deemed supply between related parties (Article 36)

7. Clarifying the period within which tax credit notes must be issued (Article 62)

8. Clarifying the period within which tax invoices and tax credit notes must be issued (Article 67)

9. Statute of limitation (Article 79 bis)

Detailed analysis

New definitions