UAE VAT Updates – Amendments to the VAT Law effective from 1 January 2023
The UAE Cabinet (Cabinet) issued Federal Decree-Law No. 18 of 2022 on 26 September 2022, which amends some of the provisions of Federal Law No. 8 of 2017 on Value Added Tax (VAT Law).
The amendments are effective from 1 January 2023.
It is noteworthy that the VAT Law is amended to revise various Articles. Some of these will have a substantial impact on the current VAT positions adopted by Businesses. Among these are the introduction of new Article on the statute of limitation, the time limit for issuance of a tax credit note, the time limit for issuance of an invoice for continuous supplies, the definition of hydrocarbons, valuation of deemed supply in case of related parties, etc.
Whereas certain amendments are immaterial to many businesses as they relate to changes in wording, incorporating all the related provisions in one place., etc., which will not have a material impact on the VAT positions adopted until now but are inserted to bring more clarity.
We have summarized below some key amendments and their relevance that taxpayers must know:
HOW CAN WE HELP?
Rethink, as an entity, provides Tax advisory, optimization, registration, implementation, compliance, and training services in UAE, Bahrain, KSA, and the GCC.
Our team of senior qualified tax advisors, finance experts, and tax accountants are happy to provide practical help and advice to ensure timely and cost-effective Tax services.
Based on our local and international experience, we understand that VAT is a complex tax and will certainly suffer numerous changes in the upcoming years. Rethink’s VAT services are aimed to suit both basic and complex returns for SMEs and larger enterprises.
WHO ARE WE?
Re/think is a boutique accounting, audit, advisory, regulatory compliance, and tax advisory firm with offices in Dubai and Abu Dhabi (ADGM) focused on providing businesses of varying sizes with timely, proactive, and customized business solutions from start-up and early development to the latest stages of a business lifecycle.
Director – Tax