The Introduction of VAT in GCC · Positive message of continued spending by Government to boost...

The Introduction of VAT in GCC

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OUR GUEST SPEAKER

Finbarr Sexton Partner Tax Advisory Ernst & Young Qatar

GCC Overview 1

Why VAT 2

GCC VAT and its key features 3

Today’s agenda

GCC Overview

1

Economic and fiscal drivers for changes in GCC

Continuing low oil prices, plans to boost economic growth and international regulatory changes are driving governments to implement tax law changes and enforcement practices.

We are likely to see considerable tax activity in GCC as governments introduce a broad range of changes to tax laws, regulations and tax practices to increase tax yields and broaden their revenue base.

► Corporate tax in UAE, and Business Profits Tax (BPT) in Kuwait

► Higher tax rates in Oman ► WHT in Kuwait ► Broader definitions of PE

in Saudi Arabia, Kuwait and Iraq

► GCC framework agreed and passed

► Confirmation of local plans by all GCC countries, for introduction from 1 January 2018

► VAT implemented in Egypt in 2016

► New tax on vacant urban land in Saudi Arabia

► New excise duties on unhealthy (alcohol and sugar-based) food products

► Increased desktop or field audits of source documentation during tax assessment process

► Deemed profit filings discontinued or discouraged

► Implementation of TP regulations or principles

► BEPS information exchange initiatives

► Foreign Account Tax Compliance Act (FATCA) rules and measures in most GCC countries

1 2 3 4 5

New income tax laws Introduction of VAT Other taxes and fiscal measures

More stringent tax enforcement BEPS and FATCA

KSA - Economic and fiscal landscape: Overview

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Three pillars of Saudi Vision 2030

Non-oil government revenues: SAR1,000b (US$266.67b) by 2030 from SAR163b (US$43.47b) in 2016

Annual Umrah visitors: 30m by 2030 from 8m in 2016

Non-oil exports as percentage of GDP: 50% by 2030 from 16% in 2016

Public Investment Fund assets: SAR7,000b (US$1,866.69b) by 2030 from SAR600b (US$160b) in 2016

Private sector contribution to gross domestic product (GDP): 65% by 2030 from 40% in 2016

Power generation capacity: 75GW by 2030 from 57GW in 2016

Unemployment rate: 7% by 2030 down from 11.6% in 2016

Female labor force: 30% by 2030 from 22% in 2016 Saudi Vision 2030: highlights

Qatar - Economic and fiscal landscape: Overview

► Qatar’s second national development strategy 2017–22 is under development, to be published by Q2 2017

► Continued focused on diversification of economy ► US$200b infrastructure program continues advance of 2022 World

Cup ► National Oil Company (Qatar Petroleum) continues international

expansion through acquisitions, JVs, investments in liquefied natural gas (LNG) through Qatar Petroleum International (in Cyprus, Mozambique, and others)

► Greater focus by Qatar sovereign wealth fund on US, Asia and emerging markets as it pivots from Europe

► Current trade blockade and political dispute hurting the economy and a significant source of uncertainty

“The Qatar National Vision aims at transforming Qatar into an advanced country by 2030, capable of sustaining its own development and providing for a high standard of living for all of its people for generations to come.”

45.50%

29.40%

12.40%

9.20%

2.90%

0.50%

100%

Real estate

Transport

Utilities

Oil and gas

Industrial

Petrochemicals

Total

Investment spending by sector (2015–18)

(Percent shares shown)

Source: MEED Projects and QNB Economics analysis

Kuwait - Economic and fiscal landscape: Overview

► The fiscal deficit is expected to narrow in 2017 as the price of oil gradually improves and the Government implements fiscal reforms.

► In line with the Vision 2035 strategic plan, capital spending on large infrastructure projects is expected to remain unaffected. However, delays are expected in the implementation of recently awarded projects, and some projects may be “re-tendered.” The five-year plan for 2015–20 envisages capital spending of US$112.7b on large projects.

► The Government’s planned capital spending of KWD34b (US$111b) through 2020 includes significant private investment. The Kuwait Authority for Partnership Projects (KAPP) has awarded US$6.6b worth of PPP contracts.

► The Government is looking for additional sources of revenue through the introduction of new taxes, reduction of subsidies on fuel, electricity and water, as well as foreign investment.

Oman - Economic and fiscal landscape: Overview

► Positive message of continued spending by Government to boost economic activity ► Planned austerity measures to continue ► GDP expected to increase with 2% growth in oil and gas and 4.7% in non-oil sectors ► Focus on diversification of economy managed by a new Tanfeedh (performance management and delivery)

unit ► Public-Private-Partnerships (PPPs) for execution of major projects — PPP framework expected in 2017 ► Amendments to Oman Income Tax Law (ITL) ► New Foreign Capital Investment Law expected in 2017 ► VAT and excise tax to be introduced as part of GCC initiative ► Impact of declining oil prices

► Projected deficit of OMR3b (US$7.8b) ► Spending of OMR11.7b (US$30.4b) ► Oil price at US$45 per barrel ► Oil production at 990,000bpd

Oil price volatility of Oman crude (US$)

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UAE - Economic and fiscal landscape: Overview

► Growth is expected to be reaching 3.6% in 2018 ► Oil production is expected to rise due to investments in oilfield development ► Non-oil growth is also projected to rebound due to;

► Expected improvement in oil prices and its positive effects on confidence and financial conditions dampen the effects of fiscal consolidation;

► Megaproject implementation ramps up ahead of Dubai’s hosting of Expo 2020. ► UAE is expected to implement a GCC-wide value added tax (VAT) by 2018 ► New bankruptcy and investment laws are also being prepared with a potential positive impact on investment

Why VAT in the GCC

2

Key reasons why VAT is going to be introduced in the GCC

► Declining oil prices have resulted in a steep fall in government revenues across GCC economies.

► With the drop in oil prices, GCC economic growth went down to just 2% in 2016 from a peak of 8.8% in 2011. The forecast for the next three years of the aggregate GCC economies’ real GDP growth is approximately 3.2%.

41.4 46.6 23.2 32.8

0

50

Saudi Arabia GCC average (unweighted)2013 2016

► Kuwait, Qatar and Saudi Arabia have moved from budget surplus to deficits in the last four years

► Heavy reliance on hydrocarbon revenues means the tax burden has been very light across the GCC region, relative to other jurisdictions (2% as against the G20 average of 29.1%)

Government revenues as a percentage share of GDP

Overall non-oil tax burden as percentage share of GDP

Africa 22.2 GCC 2.0 MENA 6.2 Asia-Pacific (APAC) 21.1 Europe 36.2 North America 29.1 OECD 34.3 G7 average 35.5 G20 average unweighted 29.1

With the drop in oil prices, GCC economic growth down from a peak of 8.8% in 2011 to just 2% in 2016 Aggregate GCC economies’ real GDP growth; year-on-year % change; including 3 year averages

10.1 9.0

6.0 6.8

4.1

6.1

-2.1

4.6

8.8

5.7

3.4 3.2 3.8

2.0 1.4

3.3 3.2 3.2

-4

-2

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

% change y/y 3 year average growth rate - to year stated

Forecast

Source; EY Knowledge analysis; Oxford Economics

Oil price declines have led to a precipitous drop in government revenues across GCC economies

24.6

72.5

49.9 50.0

41.4 40.8 46.6

21.5

52.8

38.0 35.1

23.2 26.2 32.8

0

10

20

30

40

50

60

70

80

Bahrain Kuwait Oman Qatar Saudi Arabia United ArabEmirates

GCC average(unweighted)

2013 2016

Largest percentage point

General government revenues as a % share of GDP across GCC economies; 2013 compared with 2016

Source; EY Knowledge analysis; IMF World Economic Outlook

Kuwait, Qatar and Saudi Arabia have move from budget surplus to deficits in the last four years

-3.4

26.1

-0.3

19.3

6.5

-5.1

-14.2

-8.4

-21.1

-8.3

-16.8

-6.9

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates

Annual government balance as a % share of GDP across GCC countries

2013 2016Source; EY Knowledge analysis; Oxford Economics

Heavy reliance on hydrocarbon revenues means the tax burden has been very light across the GCC, relative to other jurisdictions

Overall tax burden as percentage share of country GDP; for GCC only non-oil total tax burden shown, other country groups are total tax burden as % share of GDP. Illustrates considerably lower standard tax burden in GCC

Source; EY Knowledge analysis; OECD; IMF Article IV consultations; IMF staff paper: Diversifying Government Revenue in the GCC: Next Steps, October 2016

29.1

35.5

34.3

29.1

36.2

21.1

21.7

6.2

2.0

22.2

0 5 10 15 20 25 30 35 40

G20 average unweighted

G7 AVERAGE

OECD

North America

Europe

APAC

Latin America and the Caribbean

MENA

GCC

Africa

Current status on GCC VAT

The current challenging environment, driven by low oil prices, has resulted in major difficulties for companies and governments in the region. Governments are facing budget deficits that will need to be funded. Government revenue diversification is a top priority, and the introduction of VAT is one of the key initiatives for action.

The principles in a GCC VAT system will follow a European Union model to reflect that the new VAT regime will follow the direction of the GCC Customs Union – a single economic zone for the movement of goods and services.

► 20 April 2017: Publication of GCC VAT Framework Agreement

► 30 May 2017: KSA VAT law published for comment ► 19 July 2017: KSA VAT Implementing Regulations was

published for comments ► 28 July 2017: KSA VAT Law was published in the Official

Gazette ► 23 August 2017 : UAE MoF released the VAT law

In June 2016, government officials of the GCC have formally approved the implementation of VAT in the region. They indicated that the target date for the introduction of VAT is January 2018.

► The VAT framework has entered into force and will be imposed in the GCC as of early January

► Each Member State will incorporate the provisions of the VAT framework into their domestic VAT law and expand on these provisions through VAT regulations

GCC KSA

► 1 January 2018: Target date for the introduction of VAT in KSA and UAE

► During 2018: Other Member States will introduce VAT

Jan 2018 5%

The supply of goods and services will be taxed at a 5% rate of VAT, except the following:

► 0% VAT rate for exports, basic and certain goods and services

► Exempted goods and services

GCC VAT Where are we?

2016 2017 2018

Implementation All GCC states must implement VAT in 2018.

Domestic VAT The GCC VAT Framework Agreement will be the overarching legislation, and each GCC member state will adopt its provisions into its own domestic VAT law.

Ongoing work All GCC countries are working to implement VAT by 1 January 2018, to avoid distortions arising from intra-GCC trade. Distortions may occur when one country has implemented VAT, but another country has not and, therefore, does not have mechanisms to deal with charging VAT from business to business and onward to the consumer.

Compressed window Initially, GCC countries had committed to giving businesses 18 months to achieve compliance by 2018. However, this time frame has now been compressed to a far shorter duration, due to delays in ratification of national VAT laws

Ratification GCC VAT Framework Agreement finalized

GCC VAT and its key features

Key features of GCC VAT

EU type VAT model as GCC is a common economic zone.

1.

Framework agreement as overarching legislation allows for limited deviations. 2.

Each GCC member state will adopt the framework provisions into its own domestic VAT law. 3.

The GCC VAT Framework Agreement

Key principles of GCC VAT

What the key principles of the proposed system are likely to be

Restriction on deduction of input VAT on exempted supplies and nonbusiness expenses

0% tax on exports

Reverse charge principle to apply to intra-GCC supplies of goods and services

Mandatory US$100,000 and elective US$50,000 VAT registration thresholds

VATable supplies of goods and services

A single standard VAT rate of 5%, as well as 0% and exempt

VAT exemption to be narrow — government, health and education

Financial services — partly exempt

Imports — VATable at the point of entry into the GCC

Key features of GCC VAT

Intra-GCC supplies

► Single GCC territory concept ► VAT design constrained by existence of customs union ► Reverse charge mechanism to account for intra-GCC

supply of goods and services

► VAT due at point of entry ► VAT return and payment: Tax period shall not be less than one month; deadline for submission of returns subject

to national law ► Exceptions:

► Free zones 0% rated — national law will need to address VAT requirements for businesses operating in free zone

► Customs warehousing arrangements or other suspension arrangements

Imports

Salient features of GCC VAT

► VAT regimes: 5%, 0%, exempt ► VAT registration — annual sales thresholds

► Mandatory: US$100,000 ► Optional: US$50,000

► Expected tax period: two calendar months or quarterly, depending on GCC states (in some instances, the tax period may be for one month only)

► Electronic invoicing: Saudi Royal Court Decree No. 24957 mandated that private sector keep accounting records and apply electronic invoicing systems

► Fines and penalties include the following: ► Failure to register ► Failure to pay taxes on scheduled dates ► Filing false or misleading data ► Failure to submit VAT declaration ► Record-related fines ► Tax evasion-related fines

Salient features of GCC VAT

Exports

► Must be transported outside the GCC ► 0% rate on all goods and related services ► Records of export ► Evidence of export

► Free zones are special areas within the customs territory of each state — generally seen as foreign territories for customs duty purposes.

► Free zones established by national law and operating within a gated zone are likely to be treated as outside the scope of GCC VAT and are likely to be defined as “designated zones”.

► Service free zones and special economic zones (SEZs) that are likely to be within the GCC will be subject to VAT.

Free zones

Tax Law – Grandfathering provision ► Any Supply of Goods or services made in respect of a contract which does not anticipate the application of

VAT to the Supply may be treated as zero-rated by the Supplier until the earlier of the time the contract expires, is renewed or 31 December 2018 provided that:

► the contract was entered into before 30 May 2017, ► the Customer is entitled to deduct Input Tax in respect of the Supply of Goods or services in full or is an Eligible

Person entitled to a refund of the Tax ► the Customer provides a written certification to the Supplier that Input Tax is able to be deducted or refunded in full

on the Supply.

Transitional provisions – Saudi Arabia

Transitional provisions – United Arab Emirates

► Does not explicitly provide for grandfathering of contracts

► The Executive Regulations will provide special provisions where a contract has been concluded before the effective date of the Decree-Law but the supply under the contract is wholly or partly made after the effective date of this Decree-Law ► In the GCC VAT Framework Agreement, supplies made after the effective date will be subject to VAT

► Agreed price is inclusive of VAT if:

► Contract has been concluded before the enforcement of the VAT Decree regarding a supply to be wholly or partly made after the effective date of the VAT Decree

► There was no clause related to VAT on the supply ► VAT shall be calculated on the supply regardless of whether it has been taken into account when determining the

Consideration for the supply

► VAT will apply if supplies are made after the effective date of the VAT regime notwithstanding if the invoice was issued or the payment was made before such effective date

Financial services overview

GCC Framework

► Broadly two models: ► Narrow exemption model – Asia Pacific (e.g. Australia, New Zealand, South Africa, Singapore and Malaysia) ► Broad exemption model – UK/EU, Canada

► Under the GCC Framework Agreement, the GCC has left it to each of the member states to decide on their

own treatment of financial services.

► Likely that GCC states will adopt the narrow exemption model.

► Implications include partial exemption calculations and single / multiple supply analysis among others.

► Additionally, likely two domestic VAT laws in Qatar, when VAT is introduced in this jurisdiction.

VAT treatment – banking / asset management

Service Current view

Core banking services

‘Fee-based’ financial services are likely to be taxable at the standard VAT rate of 5%. ‘Margin-based’ financial services / products are likely to be exempt (without recovery).

Investment services and asset management activities

Advisory services likely to be taxable at the standard rate. Share trading and issue of shares, bonds and other securities are likely to be exempt.

Private Equity Advisory services likely to be taxable at the standard rate. Share trading and issue of shares, bonds and other securities are likely to be exempt

Islamic financing

Treated similarly to conventional banks i.e. core finance transactions including a fee or profit mark-up are exempt.

Transaction elements and agreements that purchase and sale of movable and immovable assets are taxable at the standard rate.

VAT treatment – insurance

Service Current view

Life insurance Exempt (long-term test). May be issues around what constitutes life insurance.

Non-Life insurance Non-life insurance is likely to be taxable at the standard rate.

Islamic insurance overview Takaful (General and Family (Life)) and ReTakaful arrangements are to be treated in the same way as conventional non-life and life insurance and reinsurance arrangements.

Non-Life (general) Takaful services Same liability as conventional insurance i.e. taxable at the standard rate.

Issues and impacts

Islamic Finance ► Under Islamic banking principles, consideration for financial services may take the form of profit share, spread, dividend or other Islamic sharia

compliant consideration.

► Commercial reality of the supply and equal tax treatment

Holding Companies ► Possible queries from GAZT and FTA querying right to deduct VAT charged on costs

► Economic activity and trade licenses

► Review of cost structure

► VAT grouping – unlikely for a passive holding company and excluded from voluntary registration.

VAT grouping ► Forming a VAT group is possible subject to criteria similar to the UK.

► Establishment only included in VAT group

Other issues ► Permanent establishment risks and potential “force of attraction” principle

► Single / multiple supply issues

Issues and impacts

Insurance services / products ► Some insurance services / products can be zero rated in particular circumstances e.g. non-GCC insured

► Definition of life insurance

► Valid VAT invoices necessary, as only policy documents are presumably used instead at the moment.

► VAT liability of claim recoveries between insurance companies still to be determined e.g. insurance company A assumes the right of the insured person of insurance company B.

Reinsurance services / products

► In general, supply of general reinsurance to a direct insurer belonging in UAE will be treated as taxable at the standard rate of 5%.

► Life re-insurance services will be exempt from VAT.

► Reinsurance cover is not treated as supplied directly in connection with goods or land.

► Input tax recovery will depend on the nature of the insured party

GCC transformation roadmap

Typical challenges and risks we identify in different business sectors

1.

2.

3.

4.

5.

Working capital and cash flow

Penalties, cost of non-compliance and non-recoverability of VAT

Operational readiness of the extended organization (suppliers to customers)

Administrative burden

Scarcity of resources

Impact of VAT across the organization

VAT implementation challenges

► Cash flow ► VAT refunds ► Input tax

recovery ► Tax payments

and accounting periods

► Imported services

► System changes

► System replacement

► Compliance ► Auditability ► Tax engines

► Multiple transaction types

► Vendor registration

► Preferential treatment

► Business structure

► Efficiency ► Reputational

risk ► Large number

of stakeholders

► Fringe benefits ► Communication ► Staff education

and training ► Policy and

procedures

► Group registration

► Compliance ► Tax authority

audits ► Monthly VAT

declarations

► Pricing ► Contracts ► Competitor

distortion

Finance and administration Compliance Information

technology (IT) Procurement Business Human resources Product offerings and marketing

Impact of VAT on your IT landscape

VAT sensitization of the ERP

Accounting Master data Transactional data

Products

Vendors

Customers Financial postings Reporting Sales order

Purchase order

Billing

Invoice receipt

AR and AP tax logic

► Is business-efficient ► Supports legal tax requirements ► Supports multiple sets of books ► Includes inventory locations and

functionality to use ► Mirrors the organizational structure,

including VAT registrations

► Customers: ► VAT registration numbers ► Tax classification

► Materials: ► VAT rate ► Tax classification

► Tax codes: ► Sufficient tax codes ► Proper setup to drive the reporting

process

► Each transaction must receive correct tax treatment for Accounts Payable (AP), Accounts Receivable (AR), intercompany, etc.

► Sufficient data elements need to be incorporated in logic to support business scenarios

► Facilitate collection of data elements where complex group VAT registrations exist

► Alignment between e-invoicing, product codes, and integrated and shopping baskets

► Invoices template should take into account legal requirements.

► The compliance process should take advantage of standard enterprise resource planning (ERP) functionalities to prepare: ► VAT returns ► Listings ► VAT accounting (sales and purchase

ledger) ► Transactional data sets to support VAT

audits

System architecture Key tax master data Tax logic Invoicing and tax reporting

The primary objectives of the Stakeholder Engagement Plan is to: Provide Stakeholders with context for the change and communicate the end-state and the road ahead Promote involvement by providing opportunities for Stakeholders to contribute feedback/input Engage Stakeholders to understand and action changes (for example to supplier contracts or Tax registration)

Stakeholder Engagement Framework and Communication Plan to own and effectively transition to VAT

Familiarization Sessions

Communication Plan

Transition Plan & Stakeholder Acceptance

Supplier Roundtables

Training Sessions

Stakeholder Engagement

Plan

Supplier Roundtables/

Customer Comms

Testing & Acceptance

Contractual changes

Operate

Feedback & Learn

Training & Procedures

37

How to prepare for VAT

Survey of VAT implementation preparedness of companies operating in the GCC states

EY conducted a survey among companies with operations in the GCC with more than 500 respondents and asked three critical questions to determine their preparedness for GCC VAT: ► How prepared is your business for VAT introduction on 1 January 2018? ► On which area of your business are you most focused when preparing for the introduction of VAT? ► How connected is your headquarters ( if headquartered outside of KSA) with your Middle East

entities in preparation for January 2018? The results were alarming, with 50% of businesses surveyed reporting they have not started preparations for VAT. The survey was conducted in December 2016.

VAT implementation preparedness of companies operating in the GCC

50%

29%

6%

4%

11%

How prepared is your business for VAT introduction on 1 January 2018?

ABCDE

A We have not started any preparations. 50%

B We have studied some of the new VAT provisions. 29%

C We have had a workshop with stakeholders. 6%

D We have conducted an impact study. 4%

E We have considered changes needed to our ERP system. 11%


52%

8%

13%

10%

17%

On which area of your business are you most focused when preparing for the

introduction of VAT?

ABCDE

A Compliance 52%

B Procurement 8%

C Education and training 13%

D Customer and vendor pricing 10%

E ERP system readiness 17%


29%

33%

16%

7%

15%

How connected is your HQ with your Middle East entities in preparation for

January 2018?

A

B

C

A No HQ visibility 29%

B Partial HQ visibility 33%

C Full HQ visibility; Middle East entities leading all activities 16%

D Full HQ visibility and involvement for enterprise changes (e.g., ERP); Middle East entities leading all other activities

7%

E Fully connected 15%

How should organizations prepare? Preparation roadmap

VAT-ready VAT workshop VAT plan developed Execution —

implementation and testing

VAT impact study

► Sourcing strategy ► Terms and conditions

of existing contracts ► Negotiations ► Payments processing ► Manufacturing, sales

and distribution

Supply chain

► ERP system capabilities

► System changes ► Transaction

auditability ► Tax automation

Systems

► VAT registrations obtained

► Transitional provisions ► Return reporting and

documentation ► Testing

Compliance

► Impact analysis and tax positions

► Working capital management

► Change management

Tax and finance

► Staff training ► Communication ► Organizational

structure ► Controls

Change management

Start

Excise tax

Excise tax What is excise tax?

► Excise tax is a tax on the production, sale or consumption of a commodity in a country. ► Excise tax will be levied at the import stage or at the production stage of the products within the country. ► The tax will be applied to a narrow base of goods that are primarily seen to have a level of harm associated

with their consumption. These goods include tobacco and sugar-sweetened beverages.

Subject goods and applicable rates An illustration of the rates

Soft drinks

50%

Energy drinks

100%

Tobacco and its derivatives

100%

http://www.google.ae/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiEqJ3X_6DSAhVGcRQKHcMoD60QjRwIBQ&url=http://www.nairaland.com/3450235/6-dangers-soft-drinks&psig=AFQjCNE73ofBcV7ROq09NCEuIDFMwYdtBw&ust=1487759906661299

https://pixabay.com/en/empa-box-drink-beverages-447323/

Ad valorem tax based on retail price

Ad valorem tax — excise tax will be based on retail selling price of the goods and articles. Ad valorem tax = number of units or other measurements x selling price of any specific value per unit x ad valorem tax rate. How will the retail price be set? ► Price set by importer or producer of the relevant excise or selective goods, or set in accordance with

standard prices that are agreed to by tax authorities in member states, whichever is higher ► In terms of concentrates, final product quantity calculated as the equivalent amount for multiplying

concentrates amount by four

Persons liable to excise tax

On domestic or local articles ► Manufacturer ► Producer ► Owner or person having possession of articles removed from the place of production without payment of the

tax On imported articles ► Importer ► Owner ► Persons found in possession of articles that are exempt from excise taxes, other than those legally entitled

to exemption

Time of payment

On domestic products ► Before removal from the place of production On imported products ► Before release from the customs' custody

Designated Zones in the UAE

Fenced free zones in the UAE, which meet certain conditions or areas, specified by the Federal Tax Authority which have security measures in place to restrict the entry and exit of individuals and the movement of goods to and from these areas may qualify as a Designated Zone. Goods stored, preserved or processed in such Designated Zones or transferred between the Designated Zones will not be subject to excise tax until the goods are released for consumption in the UAE.

Questions

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EYG no. 02027-172GBL This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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