August 2020 VAT Newsletter

In this newsletter, VAT Guide has highlighted the latest GCC VAT news for you. 


E-commerce VAT Guide (VATGEC1)

Recently, the FTA has published its new VAT Guide on E-commerce. 

This document contains guidance about the VAT treatment of supplies of goods and services through electronic means, such as over the internet or a similar electronic network. 

For the purpose of this guide, the UAE refers to the mainland UAE. This guide does not consider supplies of goods to, from or within Designated Zones. Such supplies are discussed separately in  the Designated Zones VAT Guide | VATGDZ1. 

For more details follow the link 

The Sultanate of Oman 

The draft VAT law was approved

The draft VAT law was approved by the Shura Council shortly before the Eid Al-Adha holiday in August and was referred to the State Council.

A Royal Decree adopting the VAT law is expected to be issued shortly thereafter. The Oman Tax Authority has consistently advocated a period of six months from the date of the publication of the VAT law to allow businesses to prepare for the implementation of VAT, which could see an implementation date as early as the first quarter 2021.


An updated form of VAT return

GAZT has issued the updated VAT return form catering the reporting of VAT rate increase on its web portal. Taxpayers are required to confirm whether there are any sales/purchases subject to 5% VAT before filling the VAT return form:
  • If the answer is ‘Yes’, the system will generate the return with VAT rates of 5% and 15%
  • If the answer is ‘No’, the system will generate the return with 15% VAT only

Extended timelines for tax amnesty

GAZT has extended some of the fiscal stimulus initiatives launched earlier through Ministerial Resolution No.3430 dated 5/08/1441AH corresponding to 29 March 2020. The extended measures include:
  • Temporary waiver from the imposition of penalties
  • Extending the support for installments plans
  • Deferral of VAT payments on imports 
  • Accelerating process of refund requests
  • No suspension/seizure of funds
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