Comparison Between the Amended KSA VAT
Implementing Regulations and UAE VAT Regulations
The amendments/additions to the KSA VAT Implementing Regulations published last June 2023 were compared to UAE VAT Laws and Regulations.
1) Comparison
|
KSA |
UAE |
|
Article 8 (8)– Requirement to display registration certificate on website / electronic stores |
No such requirement. |
|
Article 9 (6) – Activities contractually linked with the employer shall not be considered as ‘economic activity’ |
VDL Article 1 – Activities conducted by a person who is not independent is not considered as a ‘business’ |
|
Article 9 (7) – Workers under service secondment contracts will be considered as salaried employees on certain conditions |
No similar provision. |
|
Article 29 (7) – Fees and commissions on life insurance contract is exempt from VAT |
VATGIN1 4.1.2 – VAT Insurance-related services are subject to VAT at 5% |
|
Article 36 – Supplies of qualified suppliers to diplomatic missions will be subject to 0% VAT |
ER VDL Article 69 (1) – VAT is charged to diplomatic missions but may be refunded subject to claim |
|
Article 40 (7) (d) – Submission of other supporting documents for bad debt adjustments |
VDL Article 64 (1) – Customer shall be notified of the amount written off |
|
Article 63 – Limit of correcting errors in subsequent VAT returns has been increased to SAR 15,000 |
ER TPL Article 10 – Limit of correcting errors in subsequent VAT returns is at AED 10,000 |
|
Article 75 (5) – Opinion or ruling is binding on the Authority or Taxable Person |
TPGPC1 8 – Clarifications are not subject to the dispute resolution process |
VDL – VAT Decree Law
ER VDL – Executive Regulations of VAT Decree Law
ER TPL – Executive Regulations of Tax Procedures Law
2) Key Takeaways
- Taxpayers shall re-assess their current VAT position and practices.
- Seek the help of professionals to ascertain how amendments will impact businesses.
