The first Law Update of 2024 is here, and our first focus of the year spotlights Healthcare and Lifesciences, a sector that is undergoing significant growth and development across the MENA region.
Our focus provides an insight into some of the most important regulatory updates across the region, such as the UAE’s groundbreaking law on the use of human genome, Kuwait’s resolution on nuclear and radioactive materials, the new regulations for healthcare services in Qatar, Egypt’s healthcare regulatory framework, and the impact of the Saudi Civil Transactions Law on the healthcare and life sciences sector … and there is so much more!
Beyond the healthcare pages our lawyers share with you multi-sector insights where you will discover articles on Dubai’s DIFC regulatory framework for startups, Bahrain’s commercial agencies law, and we also shed light on Kuwaiti civil code and the advantages of setting up a joint stock company in Saudi Arabia.Read the full edition
As 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.