This week, let's shift our focus away from corporate tax. As we approach the six-month mark of its second year, it has become evident there are numerous gaps in the details, many of which I have addressed in this column previously. With the deadline for the first returns fast approaching, we can expect a rush of legislation to fill these gaps.
As advisers, we are bracing ourselves for many late evenings of analysing these changes.
Today, I am pleased to share some positive news. The recent Federal Decree Law No 16 of 2024 has brought about amendments to the UAE value-added tax law of 2017. One of the key changes is the introduction of e-invoicing. Before delving into the details, let us first provide some background information.
When an entity wishes to reclaim VAT, it is required to keep the originals of all documentation relating to that. No photocopies or scanned copies are permissible. Additionally, the originals must be legible.
This requirement poses a challenge in today's world of environmentally friendly thermal printers, as they may not produce documents that meet the necessary standards for compliance with the legislation. Business owners should be aware that, in addition to penalties, interest is also payable on any input VAT that needs to be repaid. The interest charges accrue from the date the funds were initially reclaimed.
One way to ensure compliance is by following the 2017 Certification Guidelines for Tax Accounting Software. But this required the manufacturer of the accounting software used by the invoicing party to be deemed, after annual review, compliant by the Federal Tax Authority.
This list has never been particularly long and, given the global reach of most software providers, it was understandably not often a priority.
One might imagine the move from software installed in-house solutions to cloud solutions might improve matters. However, what it has done is speed up the move from catering to national or smaller regional markets to offering homogeneous products. With internationally accepted accounting standards now the norm, software providers are left wondering what more they can do to stay competitive.
Recognising that e-invoicing requires two system capable partners, this mandatory process, which begins on July 1, 2026, will apply to both business-to-business and business-to- government transactions only.
With any announcement of this nature, there are often many details that remain unknown. However, the principles and start date have been set. It is time to begin preparations.
Some of the Gulf’s VAT framework has been borrowed from the EU, with member countries aligning their invoicing rules as an example. This will come into force once all constituent countries have implemented VAT. The original legislative deadline has passed without much discussion.
To navigate this new system, individuals will need to familiarise themselves with various acronyms, including DCTCE (Decentralised Continuous Transaction Control and Exchange). This approach requires mandated users to communicate as buyers and sellers through a Peppol (Pan-European Public Procurement On-Line) network.
In layman’s terms, it’s an online protocol that supports cross-border transactional interoperability. Users will be able to communicate and share documents.
Think of Peppol as the programming language, which means you are going to need specific software to harness it. These software solutions will be provided by Ministry of Finance-approved platforms, known as Accredited Service Providers (ASPs). A list of these is expected by the end of 2024.
While the initial reaction may be to assign the responsibility to the finance director, a multidisciplinary approach is necessary for successful integration. For organisations lacking a standard operating procedures manual, the complexity of the process is heightened. However, it is never too late to begin developing one to streamline operations and ensure compliance.
The greatest benefits might accrue to the largest organisations that have an imbalance between labour and capital. In our region, we tend to prioritise cheaper labour over implementing IT solutions that could enhance efficiency and reduce costs in the medium term.
Take a moment to assess the number of people in your business who are solely responsible for processing paper. E-invoicing represents a form of automation that can greatly benefit operations. What other areas within the business could potentially benefit from similar enhancements?
More than two decades ago, I completed my first finance function transformation in London. The accounts payable department of 46 employees was streamlined down to two IT professionals who managed the previously paper-based operations. Since then, technology has advanced significantly.
In the realm of financial disclosure, many entities are hesitant to share their financial information with the public and private sectors, or government.
VAT returns may provide some insight into an organisation's financials during audits by the Federal Tax Authority, but under the new system the relevant authorities will be automatically sent your live transactional data as it happens. Through the use of advanced AI software, this could be interrogated.
It is crucial for businesses to have a clear understanding of their financial operations before external parties uncover any discrepancies.
David Daly is a partner at the Gulf Tax Accounting Group in the UAE
Company%20profile
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SM Town Live is on Friday, April 6 at Autism Rocks Arena, Dubai. Tickets are Dh375 at www.platinumlist.net
UAE currency: the story behind the money in your pockets
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Pari
Produced by: Clean Slate Films (Anushka Sharma, Karnesh Sharma) & KriArj Entertainment
Director: Prosit Roy
Starring: Anushka Sharma, Parambrata Chattopadhyay, Ritabhari Chakraborty, Rajat Kapoor, Mansi Multani
Three stars
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
Crazy Rich Asians
Director: Jon M Chu
Starring: Constance Wu, Henry Golding, Michelle Yeon, Gemma Chan
Four stars
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
Sreesanth's India bowling career
Tests 27, Wickets 87, Average 37.59, Best 5-40
ODIs 53, Wickets 75, Average 33.44, Best 6-55
T20Is 10, Wickets 7, Average 41.14, Best 2-12
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
MOTHER%20OF%20STRANGERS
%3Cp%3EAuthor%3A%20Suad%20Amiry%3Cbr%3EPublisher%3A%20Pantheon%3C%2Fp%3E%0A%3Cp%3EPages%3A%20304%3Cbr%3EAvailable%3A%20Now%3C%2Fp%3E%0A
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press
PAKISTAN v SRI LANKA
Twenty20 International series
Thu Oct 26, 1st T20I, Abu Dhabi
Fri Oct 27, 2nd T20I, Abu Dhabi
Sun Oct 29, 3rd T20I, Lahore
Tickets are available at www.q-tickets.com
Match info
Bournemouth 0
Liverpool 4 (Salah 25', 48', 76', Cook 68' OG)
Man of the match: Andrew Robertson (Liverpool)
MEYDAN RESULTS
6.30pm Baniyas (PA) Group 2 Dh125,000 (Dirt) 1,400m
Winner ES Ajeeb, Sam Hitchcock (jockey), Ibrahim Aseel (trainer).
7.05pm Maiden (TB) Dh165,000 (D) 1,200m
Winner Galaxy Road, Antonio Fresu, Musabah Al Muhairi.
7.40pm Maiden (TB) Dh165,000 (D) 1,400m
Winner Al Modayar, Fernando Jara, Ali Rashid Al Raihe.
8.15pm Handicap (TB) Dh170,000 (D) 1,900m
Winner Gundogdu, Xavier Ziani, Salem bin Ghadayer.
8.50pm Rated Conditions (TB) Dh240,000 (D) 1,600m
Winner George Villiers, Tadhg O’Shea, Satish Seemar.
9.25pm Handicap (TB) Dh175,000 (D)1,200m
Winner Lady Parma, Connor Beasley, Satish Seemar
10pm Handicap (TB) Dh165,000 (D) 1,400m
Winner Zaajer, Fernando Jara, Ali Rashid Al Raihe
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Sunday's games
Liverpool v West Ham United, 4.30pm (UAE)
Southampton v Burnley, 4.30pm
Arsenal v Manchester City, 7pm
No Shame
Lily Allen
(Parlophone)
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
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