United Arab Emirates

UAE pre-VAT contracts

March 13th, 2018

The United Arab Emirates’ Federal Tax Authority has issued guidance on 3 March on the VAT liabilities for parties in contracts spanning the 1 January 2018 introduction of VAT. Where a contract does not make clear which party will be liable for VAT, and quotes only a VAT exclusive price, then it automatically falls to …


Qatar

Qatar aims for 1 Jan 2019 VAT

March 4th, 2018

Qatar is aiming to introduce VAT on 1 January 2019. It is a member of the 6 Gulf Cooperation Council states that committed to launch a harmonised VAT regime. To date, only Saudi Arabia and UAE have launched the 5% indirect tax system. The Qatari Tax Office is to shortly release guidance on the treatment …


Bahrain

Bahrain VAT launch by end of 2018

February 23rd, 2018

The Bahraini Finance Minister has confirmed the Gulf state’s plan to launch a 5% VAT regime before the end of 2018. The implementation date could be 1 October 2018.  “We’ll be working with parliament on VAT and aim to have everything set up by the end of 2018,” Sheikh Ahmed said. Bahrain, along with Kuwait, …


Saudi Arabia

Saudi Arabia simplified VAT invoice

January 30th, 2018

The Kingdom of Saudi Arabia is relaxing the requirement to produce simplified invoices for B2C sales under the new VAT regime. Initially following the 1 January 2018 introduction of VAT, simplified VAT invoices could only be produced for all sales below Riyals 1,000.  However, the General Authority of Zakat and Tax (GAZT) now states that this is …


United Arab Emirates

UEA e-commerce liable to 5% VAT

January 27th, 2018

The United Arab Emirates tax office, the Federal Tax Authority, has confirmed that e-commerce sales to consumers by foreign vendors are liable to the new 5% VAT regime. Supplies include both physical goods and digital services (i.e. income from: streaming media; apps; software; e-books; journals; and membership sites).  There is an annual selling threshold of …


United Arab Emirates

UAE delays first VAT returns

January 23rd, 2018

The United Arab Emirates Federal Tax Authority has relaxed the initial filing dates for the new VAT regime, launched on 1 January 2018. This is to provide businesses, particularly smaller enterprises, time to adjust to the new indirect tax. Under the new VAT regime, businesses with a turnover above DH150million are required to file monthly …


Israel

Israeli VAT invoice rules

January 22nd, 2018

Invoice date of issue and storage of Israeli VAT VAT invoices must be issued within 14 days of a taxable supply, or cash settlement. Israeli VAT invoices should show the following information: Name, including trading name, and address of supplier and customer VAT number of the supplier, and the words ‘Tax Invoice’ and ‘Authorized Entrepreneur’ Date …


Israel

Israeli VAT rates and compliance

January 22nd, 2018

Israeli VAT rates There are two Israeli VAT rates – standard and nil rates. The current rates are: Although VAT exempted, financial service companies and not-for-profit organisations are liable to a wage and profits tax. Israeli VAT compliance As a tax payer, a VAT registered business must comply with the rules and record keeping requirements …


Israel

Israeli VAT returns

January 22nd, 2018

VAT registered traders must file regular returns with the Israeli Tax Authority. How often are Israeli VAT returns required? The VAT return filing frequency depends on the business’ monthly turnover levels: Monthly: monthly turnover above NIS 1,490,000 Bi-monthly: monthly turnover below NIS 1,490,000 What Israeli VAT can be deducted? Tax payers may reduce the VAT …