VAT Update: UAE Announces Changes To Provisions

The Ministry of Finance has recently announced Federal Decree-Law No. 18 of 2022 on the Amendment of some provisions of the Federal Decree-Law No. 8 of 2017 on VAT (the Amendment Law).

The Amendment Law amends some provisions of the Federal Decree-Law No. 8 of 2017 on VAT which shall take effect from 1 January 2023.

Some of the major amendments are the following:

1. If Registered persons only make zero-rated supplies and don't make (or no longer make) standard rated supplies, they can then apply for an exemption from VAT registration.
2. Setting a 14-day period to issue a Tax Credit Note to settle output tax which puts it in line with the same time frame to issue Tax Invoices.