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Find out moreWe are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.
Read the full editionAs you may be aware, Bahrain will introduce VAT with effect from 1 January 2019 and companies in the UAE with operations in Bahrain should immediately assess the impact of the VAT on their business in Bahrain.
We are actively assisting clients on the implementation of VAT in Bahrain and have a dedicated local team on the ground. Click here for more information on the implementation of VAT in Bahrain and Al Tamimi’s VAT offering.
Tourist Refund Scheme to come into effect on 18 November 2018
The Federal Tax Authority (FTA) has recently announced that the Tourist VAT Refund Scheme will come into effect on 18 November 2018. The first phase envisages the digital system of the Scheme to be implemented at the Abu Dhabi, Dubai and Sharjah international airports. It is expected that the system will be fully operational and rolled out to all airports and land and seaports in the UAE by mid-December.
FTA publishes VAT guidelines on ‘Charities’
The FTA recently published VAT guidelines on charities which set out criteria for a charity to qualify as a designated charity for VAT purposes. The guide explains the circumstances under which activities of a charity will be treated as business or non-business activities for VAT purposes. The guide also clarifies the application of the deemed supply rules to charities. In addition, the guide confirms that charities that carry on a business and make taxable supplies in excess of the mandatory registration threshold should register for VAT and that designated charities may be able to recover VAT incurred in respect of their charitable activities under a special refund scheme.
FTA publishes updated VAT guidelines on ‘Real Estate’
The FTA issued a new version of the VAT guide on real estate. The guide clarifies that in the case of retention payments, the date of supply will be triggered at the earliest of (i) date the retention payment is made; (ii) the date of issuance of a tax invoice in relation to the retention; and (iii) 12 months from date of completion of work.
Further, the guide also clarifies that in the context of snagging, where the customer holds the retention payment permanently and VAT has already been accounted for, the supplier may make an adjustment in its VAT return either by declaring it as a ‘bad debt’’ (if payment is still due) or by issuing a tax credit note (if it is accepted that no payment is due at all).
Please do not hesitate to contact Al Tamimi’s Tax Team if you require any assistance.
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