VAT Law

VAT Law

In 2018 the UAE and Saudi Arabia implemented the Value Added Tax (VAT). Bahrain followed in January 2019. The implementation has challenged many companies in the region to adapt their accounting practices to meet the requirements of the VAT regime.

For both companies and the tax authorities alike, VAT is a very new experience. Given that there is a lack of literature and precedent on VAT matters in the GCC countries, companies and the tax authorities will have obvious challenges in determining and assessing VAT.

 

Our Services

Our VAT specialists, lawyers and tax consultants, with extensive experience in dealing with VAT in different jurisdictions worldwide are able to provide you with advice in all aspects of VAT, including:

  • Providing tailored advice for implementation and registration  of VAT with FTA (UAE), GAZT (KSA) and NBR (Bahrain)
    We can answer all your VAT related questions and provide you with a clear manual for your operational business (e.g. invoicing) even for cross-border related transactions (e.g. cross-border VAT within the GCC).
  • VAT-Compliance: carrying out “Health Checks”

We check if your business operations is compliant with VAT regulations

  • Preparation and reviewing of VAT Returns and calculation of VAT liability in UAE, KSA and Bahrain
    We calculate the VAT liability in both jurisdictions UAE and KSA and file the periodical VAT Returns to the relevant Tax Authority to avoid penalties.
  • Dealing with and representing before the relevant Tax Authority and Court

We support our clients on the communication with the Tax Authorities, including refund applications and support in connection with VAT Audits. We are in a unique position to assist you at each step of the appeal proceedings during dispute resolution before the Tax Authority, the Tax Dispute Resolution Committee and even the Court through litigation support.

 

U.A.E.: What are the steps a company can take if they receive an incorrect tax assessment?

1st Step: Request the FTA to reconsider its decision

Such request of re-consideration has to be made within 20 business days from the date the company was notified of the original decision of the FTA, and the FTA will have 20 business days from receipt of the request to provide its revised decision.

2nd Step: Objection to the Tax Disputes Resolution

In case of a negative decision by the FTA, the company can object to the Tax Disputes Resolution Committee within 20 business days from the date the company was notified of the FTA’s revised decision. The Committee shall give its decision within 20 business days from the receipt of the objection.

3rd Step: Filing a lawsuit before the Court​

As a final step, in case of an unsatisfactory decision by the Committee, the company can file a lawsuit before the competent court within 20 business days from the date of the notification of the Committee’s decision​.

 

Note: It is important that the company has professional support by an experienced tax consultant and tax lawyer at each of the above-mentioned steps, in order to ensure to assert its rights against at any time.