Law Updates

TA Amends Executive Regulation of VAT Law

The Tax Authority (TA) published in this week’s Official Gazette Ministerial Decision 521/2023 Amending Some Provisions of the Executive Regulation of the Value Added Tax Law. This decision adds a new article 196bis, which provides for new additional cases in which VAT can be refunded that are set out in the schedule attached to the decision.

These cases are:

  1. When a non-profit association pays tax on the goods and services it receives that are directly related to charitable activities.
  2. When a non-taxable person pays tax upon import in excess of the tax due.
  3. When tax has been collected on imported goods in the event that they are re-exported and the GCC Unified Customs Law stipulates for the refund of the customs tax if it has been collected.

The schedule also contains a column detailing the procedures for claiming the VAT refund for each case.

The amendment entered into force yesterday, i.e. 30 October 2023.

You can read the amendment in full in English on the link below: