Dubai: The Ministry of Finance in the UAE has announced some changes to VAT provisions. The ministry amended some provisions of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT). The new changes will come into effect from January 1, 2023.
As per 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. The authority will setup 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. The Federal Tax Authority (FTA) may forcibly deregister registered persons in specific cases if deemed necessary.
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The new changes were announced in line with international best practice in light of the GCC Unified VAT Agreement, challenges faced by various business sectors as well as the recommendations received from the relevant parties.
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