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UAE Ministry of Finance Amends Provisions of VAT Law

The UAE ministry of finance issued Federal Decree-Law No. 18 of 2022 amending some provisions of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT).

The Decree-Law includes amendments to certain provisions to clarify and confirm the intended meaning of the text; to rephrase; or to improve the legislative sequence of legal provisions.

According to the new amendments, registered persons who make taxable supplies are allowed to apply for an exception from VAT registration if all of their supplies are zero-rated or if they no longer make any supplies other than zero-rated supplies.

Furthermore, the amendments include setting a 14-day period to issue a tax credit note to settle output tax, in line with the time frame set for issuing tax invoices.

If deemed necessary, The Federal Tax Authority (FTA) may also forcibly deregister registered persons in specific cases.

The Decree-Law will enter into effect on 1st of January 2023.