Amendments to the UAE VAT Executive Regulation

On October 2, 2024, the Federal Tax Authority (FTA) announced Cabinet Decision No. (100) of 2024, updating the Executive Regulation of Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT). This regulation will take effect on November 15, 2024, addressing the evolving business landscape in the UAE. It includes amendments to over 30 articles impacting various industries. Here are the key updates and changes to note.

Next Steps and Way Forward

This amendment has led to several significant changes that will impact taxpayers in various ways. Below, we outline key steps companies may consider when planning their next steps:

System Changes

• VAT accounting systems to accommodate both exempt and taxable transactions related to virtual assets, including changes in VAT rates and tax invoice and credit note formats.

Documentation

• Ensure proper documentation for transactions to comply with the new definitions and requirements.

Public Clarification

• Wait for further guidance from the FTA, which will provide a public clarification guide to assist taxpayers in adapting to these changes.

VAT Returns

• Review upcoming VAT returns to determine if any adjustments or voluntary disclosures (VDs) are necessary for transactions affected by the amendments. Cross-border Tax Considerations Businesses engaged in cross-border transactions should prepare for potential adjustments in future returns to comply with the new regulations.

Impact on Ongoing Litigation

• Evaluate any pending VAT litigation related to transactions affected by these amendments, such as those involving medical insurance or export of goods, as this amendment may retroactively resolve such disputes.

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