Федеральный декрет-закон № (8) от 2017 года о налоге на добавленную стоимость

المادة 1

Definitions For the purpose of applying the provisions of this Decree-Law, the following words and expressions shall have the meanings assigned thereto respectively, unless the context requires otherwise:

المادة 2

Scope of the Tax The Tax shall be levied on: 1. Every taxable supply and deemed supply carried out by the taxable person. 2. Importation of the relevant goods except for what is specified by the Executive Regulations of this Decree-Law.

المادة 3

Rate of the Tax Subject to the provisions of Part VI of this Decree-Law, the standard rate of the tax to be levied on any supply or importation shall be (5%) in accordance with the provisions of Article (2) hereof based on the value of the supply or importation specified in accordance with the provisions of this Decree-Law.

المادة 4

Responsibility for the Tax The responsibility for the levied tax shall fall on the following: 1. The taxable person that makes any supply set forth in Clause (1) of Article (2) of this Decree-Law; 2. The importer of relevant goods;

المادة 5

Supply of Goods The following shall be considered a supply of Goods: 1. Transfer of ownership of the Goods or the right to dispose thereof to another Person, as determined by the Executive Regulations of this Decree-Law. 2. Concluding an agreement between two or more parties, which entails the transfer of Goods later, under the conditions laid down in the Executive Regulations of this DecreeLaw.

المادة 6

Supply of Services Each supply not considered a supply of goods shall be deemed as a supply of services, including any provision of services in accordance with what is determined in the Executive Regulations of this Decree-Law.

المادة 7

Supply in Special Cases Notwithstanding the provisions contained in Articles (5) and (6) of this Decree-Law, the following shall not be deemed as a supply: 1. Selling or issuing any Voucher, unless the received Consideration exceeds its declared cash value, as determined by the Executive Regulations of this Decree-Law; 2. Transferring Business or independent part thereof from a Person to a Taxable Person to continue such transferred Business; and 3. Any other supply identified by the Executive Regulations of this Decree-Law

المادة 8

Supply Composed of more than one Component The Executive Regulations of this Decree-Law shall define the conditions of the transaction of the supply composed of more than one component for a single price, whether such components are goods and/or services.

المادة 9

Supply by an Agent 1. Where goods and services are supplied by an agent acting on behalf of a principal, the supply shall be deemed to be made by the principal and for his benefit. 2. Where goods and services are supplied through an agent acting in his own name, the supply shall be treated as a direct supply by the agent and for his benefit.

المادة 10

Supply by Government Agencies 1. The government agency shall be deemed as making a supply in the course of business in the following cases: a. If its activities are performed in a non-sovereign capacity. b. If its activities are in competition with the private sector. 2. The Cabinet shall issue a resolution, upon the proposal of the Minister, which shall determine the government agencies, their activities considered to be performed in a sovereign capacity and the cases where their activities are considered not in competition with the private sector.

المادة 11

Cases of Deemed Supply The following cases shall be regarded as deemed supply: 1. Supply of goods or services forming the whole assets of the taxable person or part thereof, but such goods or services no longer form part of the assets, provided that the supply is made for no consideration. 2. Transfer of goods forming part of the business assets of a taxable person in the State to his business in one of the applying states, or from the taxable person's business in an applying state to his business in the State, except in the case where such transfer is: a. deemed temporary pursuant to the Customs Legislation. b. made as part of another taxable supply of such goods. 3. Supply of goods or services for which input tax may be recovered but they have been used in whole or in part for purposes other than the business, and such supply shall be regarded as deemed supply within the limits of use for non-business purposes. 4. Goods and services owned by the taxable person at the date of cancellation of tax registration.

المادة 12

Exceptions from the Deemed Supply The supply shall not be regarded as deemed supply in the following cases: 1. If the amount of the input tax for the related goods and services is not refunded. 2. If the supply is an exempted supply. 3. If the refunded input tax on the goods and services is adjusted in accordance with the Capital Assets Scheme. 4. If the value of the supply of goods, for each recipient during the period of twelve months, does not exceed the amount determined by the Executive Regulations of this Decree-Law and the supply is intended to use such goods as samples or commercial gifts. 5. If the total output tax payable for all the deemed supplies per person for the period of twelve months is less than the amount specified by the Executive Regulations of this Decree-Law.

المادة 13

Mandatory Tax Registration 1. Every Person who has a Place of Residence in the State or in one of the Applying States shall register for the Tax if: a. The value of the supplies set forth in Article (19) hereunder exceeds, during the previous (12) twelve-month period, the Mandatory Registration Threshold; or b. It is expected that the value of the supplies set forth in Article (19) hereunder will exceed the Mandatory Registration Threshold during the next (30) thirty days. 7. Every Person who does not have a Place of Residence in the State or in one of the Applying States shall register for the Tax if such Person makes supplies of Goods or Services and no other Person obligated to pay the Due Tax for such supplies is in the State. 3. The Executive Regulations of this Decree-Law shall determine the time limits during which the Person shall notify the Authority of the necessity to register for the Tax and the effective date of the Tax Registration.

المادة 14

Tax Group 1. Two or more persons practicing the business may apply for the tax registration as a tax group if the following conditions are satisfied: a. Each of them shall have a business establishment or fixed establishment in the State. b. The relevant persons shall be related parties. c. One or more persons practicing the business in a partnership shall control the others. 2. The Executive Regulations of this Decree-Law shall define the cases where the Authority may reject the application for registering the tax group. 3. No person who practices the business shall have more than one Tax Registration Number, unless otherwise provided for in the Executive Regulations. 4. If the related parties fail to apply for the tax registration as a tax group in accordance with Clause (1) of this Article, the Authority may assess their relation based on their practice of the business on an economic, financial and organizational basis and register the same as a tax group if it verifies their relation in accordance with the controls and conditions established by the Executive Regulations of this Decree-Law. 5. The Authority may cancel the registration of the tax group under the provisions contained in this Article, in accordance with the conditions laid down in the Executive Regulations of this Decree-Law. 6. The Authority may make amendments to those registered as a tax group by adding or removing some persons, upon request of the taxable person or in accordance with the cases set out in the Executive Regulations.

المادة 15

Exemption from the Registration 1. The Authority may exempt the Taxable Person, whether registered or unregistered, from the Tax Registration, upon their request, if their supplies are zero-rated only. 2. If any changes to the business of the Taxable Person who is exempted from the Tax Registration occur, pursuant to Clause (1) above, and lead, or would lead, to the elimination of the reason based on which they have been exempted, they shall notify the Authority of such changes within the time limits and according to the procedures identified by the Executive Regulations of this Decree-Law. 3. The Authority shall be entitled to collect the Due Tax and the Administrative Fines for the period of exemption if it found that the Taxable Person is not entitled to be exempted.

المادة 16

Tax Registration of Government Agencies Government agencies to be determined by the Cabinet resolution referred to in Clause (2) of Article (10) of this Decree-Law shall apply for the tax registration and such registration may not be cancelled except under a Cabinet resolution to be issued upon the proposal of the Minister.

المادة 17

Voluntary Registration Any person who is not liable to be registered in accordance with the provisions of this Part may apply for the tax registration voluntarily in the following cases: 1. If such person proves, at the end of any given month, that the value of supplies set forth in Article (19) hereof or the taxable expenses incurred during the previous twelve months has exceeded the Voluntary Registration Threshold. a. If it is expected, at any time, that the value of supplies set forth in Article (19) hereof or the taxable expenses to be incurred during the next thirty days will exceed the Voluntary Registration Threshold.

المادة 18

Tax Registration for Non-Residents A non-resident person may not take the value of goods and services imported to the State for the purpose of determining whether he is entitled to be registered if the calculation of tax for such goods and services is the responsibility of the importer in accordance with the provisions of Clause (1) of Article (48) of this Decree-Law.

المادة 19

Calculating the Tax Registration Threshold For the purpose of determining whether a person exceeds the Mandatory Registration Threshold and the Voluntary Registration Threshold, the total value of the following shall be calculated: 1. The value of taxable goods and services. 2. The value of relevant goods and relevant services received by the person if not calculated under Clause (1) of this Article. 3. The value of the whole or relevant part of taxable supplies belonging to such person if he acquires, in whole or in part, a business of a person who has made such supplies. 4. The value of taxable supplies made by related parties according to the cases defined by the Executive Regulations of this Decree-Law.

المادة 20

Capital Assets The supply of capital assets belonging to the person during practicing the business shall be disregarded when determining whether a person exceeds the Mandatory Registration Threshold or the Voluntary Registration Threshold.

المادة 21

Cases of Tax Deregistration 1. The Registrant shall submit to the Authority an application for the Tax deregistration in any of the following cases: a. If he ceases to make Taxable Supplies. b. If the value of the Taxable Supplies made during the period of (12) twelve consecutive months is less than the Voluntary Registration Threshold, and the case set out in Clause (2) of Article (17) of this Decree-Law is not applicable to him. 2. The Authority may issue a Tax deregistration decision where it is convinced that the retention of tax registration would adversely affect the tax system's integrity, pursuant to the conditions and controls set forth in the Executive Regulations of this Decree-Law. 3. The Tax deregistration shall not invalidate the Authority's right to claim any tax due or administrative fines.

المادة 22

Applying for Cancellation of Tax Registration The registrant may submit to the Authority an application for cancellation of tax registration if the value of the taxable supplies made during the period of previous twelve months is less than the Mandatory Registration Threshold.

المادة 23

Voluntary Tax Registration Cancellation The registrant shall not be entitled, pursuant to Article (17) hereof, to submit an application for cancellation of his tax registration within twelve months as of the date of his tax registration.

المادة 24

Procedures, Controls and Conditions of Tax Registration and Cancellation thereof The Executive Regulations of this Decree-Law shall determine the procedures, controls and conditions of the tax registration, cancellation thereof and rejection of applications for tax registration and its cancellation as set forth in this Part.

المادة 25

Date of Supply The tax shall be calculated on the date of supply of goods or services, which shall be the earlier date of any of the following: 1. The date of transferring the goods if they are transferred under the supervision of the supplier. 2. The date on which the goods are made available to the recipient if they are not transferred under the supervision of the supplier. 3. The date on which the assembly or installation of goods is completed if there is an obligation to install and assemble the supplied goods. 4. The date on which the goods are imported in accordance with the Customs Legislation. 5. The date on which the recipient accepts the supply, or no later than twelve (12) months following the date on which the goods are transferred or made available to the recipient, if the supply id made on a returnable basis. 6. The completion date of providing the services. 7. The date of receiving the payment or the date of issuing the tax invoice.

المادة 26

Date of Supply in Special Cases 1. The date of supply of Goods and Services for any contract that contains periodic payments or consecutive invoices shall be the earliest date of the following: a. The date of issuing any tax invoice; b. The maturity date of the amount stated in the tax invoice; c. The date of receiving the paid amount; or d. The date on which a year has lapsed following the date of supplying the goods or services. 2. The date of supply, in cases where payment is made through vending machines, shall be the date on which the amount is collected from such machines.

المادة 27

Place of Supply of Goods 1. The place of supply of Goods shall be in the State if such supply is made in the State and does not involve Exportation from or Importation into the State. 2. The place of supply of installed or assembled Goods if exported from or imported to the State shall be: a. In the State if such Goods are assembled or installed in the State. b. Outside the State if such Goods are assembled or installed outside the State. 3. The place of supply of Goods that involves Exportation or Importation shall be as follows: a. Inside the State in the following cases: i. If the supply involves Exportation to a place outside the Applying States; ii. If the Recipient of Goods in an Applying State is not registered for the Tax in the state of destination, and the total exports from the same supplier to such state does not exceed the Mandatory Registration Threshold of such state; iii. If the Recipient of Goods does not have a Tax Registration Number in the State and the total exports from a supplier in an Applying State to the State exceeds the Mandatory Registration Threshold; and iv. If Article (26.1) above is applicable and the title to Goods is transferred inside the State. b. Outside the State in the following cases: b. If the supply involves Exportation to a customer registered for the Tax purposes in one of the Applying States. ii. If the Recipient of Goods is not registered for the Tax purposes in one of the applying state to which Exportation is made, and the total exports from the same supplier to such state exceeds the Mandatory Registration Threshold of such state. iii. If the Recipient of Goods does not have a Tax Registration Number and imports Goods from a supplier registered for the Tax in an Applying State from which importation is made, and the total imports from the same supplier to the State do not exceed the Mandatory Registration Threshold. 4. Goods shall not be treated as exported outside the State and then re-imported thereto if such Goods are supplied in the State and the supply requires sending the Goods outside the State and then the re-entry thereof into the State, as per the cases defined by the Executive Regulations of this Decree-Law.

المادة 28

Place of Supply of Water and Energy 1. The supply of water and types of energy defined by the Executive Regulations of this Decree-Law through a distribution system, shall be deemed to be made in the place of residence of the taxable trader if the distribution is carried out by a taxable person whose place of residence in the State to a taxable trader whose place of residence in an applying state. 2. The supply of water and types of energy defined by the Executive Regulations of this Decree-Law through a distribution system, shall be deemed to be made at the place of actual consumption if the distribution is carried out by a taxable person to a non-taxable person.

المادة 29

Place of Supply of Services The place of supply of services shall be the place of residence of the supplier.

المادة 30

Place of Supply in Special Cases Notwithstanding the provisions of Article (29) of this Decree-Law, the place of supply in special cases shall be as follows: 1. If the Recipient has a place of residence in an Applying State and is registered for the tax purposes therein, the place of supply shall be the place of residence of the Recipient. 2. If the Recipient is a Person practicing the Business and has a place of residence in the State, and the supplier does not have a place of residence in the State, the place of supply shall be in the State. 3. In case of the supply of Services related to Goods, such as the Services of installation related to Goods supplied by others, the place of supply shall be the place where such Services are performed. 4. If the supply is leasing means of transport to a lessee who is a Untaxable Person in the State and does not have a Tax Registration Number in an Applying State; the place of supply shall be the place where such means of transport are made available to the lessee. 5. In case of the supply of restaurant, hotel, and food and drink catering services; the place of supply shall be the place where such Services are actually performed. 6. In case of the supply of any cultural, artistic, sporting or educational Services or any similar Services; the place of supply shall be the place where such services are performed. 7. In case of the supply of Services related to a real property, as determined by the Executive Regulations of this Decree-Law, the place of supply shall be the place where such real property is located. 8. In case of the supply of transport Services or transport-related services, the place of supply shall be where the transport starts. The Executive Regulations of this Decree-Law shall determine the place of supply of transport services if the trip includes more than one stop.

المادة 31

Place of Supply of Telecommunication and Electronic Services 1. The place of supply of telecommunications and electronic services stated in the Executive Regulations of this Decree-Law shall be as follows: a. Inside the State, if such services are used and enjoyed therein, to the extent of such use and enjoyment. b. Outside the State, if such services are used and enjoyed outside the State, to the extent of such use and enjoyment. 2. The actual use and enjoyment of telecommunications and electronic services shall be where such services are used regardless of the place of contract or payment.

المادة 32

Business Establishment The place of residence of the supplier or recipient shall be as follows: 1. The state where the business establishment of the person is located or where he has a fixed establishment, provided that he does not have a business establishment or fixed establishment in any other state. 2. The state where the business establishment of the person is located or where he has a fixed establishment, which is the most directly concerned with the supply if the business establishment is located in more than one state or he has fixed establishments in more than one state. 3. The state where the usual place of residence of the person is located if he has no business establishment or fixed establishment in any state.

المادة 33

Agents The Place of Residence of the agent shall be the Place of Residence of the principal in the following cases: 1. If the agent exercises, on a regular basis, the right of negotiation and entering into agreements on behalf of the principal. 2. If the agent keeps a stock of Goods to fulfill agreements for the supply thereof in favour of the principal regularly.

المادة 34

Value of Supply The value of any supply of goods or services for a consideration shall be as follows: 1. Where the supply is for a cash consideration in whole, the value of the supply shall be the consideration less the tax. 2. Where the supply is for a consideration not in cash or a consideration not wholly in cash, the value of the supply shall be calculated as the overall cash part plus the market rate of the non-cash part of the consideration, and shall not include the tax. 3. In case of services received by the taxable person who is required to calculate the tax in accordance with Clause (1) of Article (48) of this Decree-Law, the value of the supply shall be equal to the market rate of the consideration without addition of the tax chargeable on such supply. 4. If the consideration is related to matters other than the supply of goods or services, the supply shall be deemed to be for the part of the consideration as is properly attributable to the supply as determined in the Executive Regulations of this Decree-Law. The Executive Regulations of this Decree-Law shall determine the rules of defining the market rate.

المادة 35

Importation Value The value of imported goods shall consist of: 1. The value of the goods for the customs purposes in accordance with the Customs Legislation, including the value of insurance, freight, any customs duties and any excise taxes to be paid on the importation of goods. The tax shall not be included in the value of supply. 2. If it is not possible to determine the value of supply according to Clause (1) of this Article, the value shall be determined based on the alternate valuation rules set forth in the Customs Legislation.

المادة 36

Value of Supply and Deemed Supply for Related Parties Notwithstanding the provisions of Articles (34), (35) and (37) of this Decree-Law, the value of the supply or Importation of Goods or Services between the Related Parties shall be considered equal to the market rate if all the following conditions are fulfilled: 1. The value of the supply is less than the market rate. g. If the supply is taxable and the Recipient of Goods or Recipient of Services is not entitled to recover the full Tax to be levied on such supply as an Input Tax.

المادة 37

Value of Deemed Supply Notwithstanding the provisions of Articles (34) and (35) of this Decree-Law, in case of the deemed supply, when the taxable person purchases goods or services to make taxable supplies but he does not use the same for such purpose, the value of the supply shall be equal to the total cost incurred by the taxable person to make such deemed supply of goods or services.

المادة 38

Tax-Inclusive Prices The declared prices shall include the tax in case of the taxable supplies. The Executive Regulations of this Decree-Law shall determine the cases where prices do not include the tax.

المادة 39

Value of Supply in case of Discount or Subsidies When discounts are made prior to or after the date of supply or subsidies are provided by the State to the supplier for such supply, the value of such supply shall be reduced in proportion to such discounts or subsidies. The Executive Regulations of this Decree-Law shall establish the conditions and rules of calculating the tax when the discount is made.

المادة 40

Value of Supply of Vouchers The value of the supply of any voucher shall be the difference between the consideration received by the supplier of the voucher and the declared cash value of the voucher.

المادة 41

Value of Supply of Postage Stamps The value of the supply of postage stamps that enables the user to use the postal services in the State shall be the amount shown on the postage stamp.

المادة 42

Temporary Transfer of Goods If the goods are transferred temporarily from the local markets to a designated area or outside the State to complete their manufacture or their repair for the purpose of re-importing the same to the State, the value of the supply, when re-imported, shall be the value of the services performed.

المادة 43

Levying the Tax based on the Profit Margin 1. The registrant may, in any specific tax period, calculate and charge the tax on the basis of the profit margin earned on the taxable supplies determined in the Executive Regulations of this Decree-Law and not on the basis of the value of such supplies, and shall notify the Authority thereof. 2. The Executive Regulations of this Decree-Law shall establish the conditions to be met for the application of the provisions of this Article.

المادة 44

Zero-Rated Supply and Importation The supply and importation of goods and services specified in this Chapter made by the taxable person shall be a zero–rated supply.

المادة 45

Zero-Rated Goods and Services The zero rate shall apply to the following Goods and Services: 1. The direct or indirect Exportation to outside the Applying States, as determined by the Executive Regulations of this Decree-Law. 2. Services of international transport of passengers and Goods, which starts or ends in the State or passes through its territories, including Services related to such transport. 3. The air passenger transport inside the State if such transport is deemed to be "international carriage" in accordance with Article (1) of the Warsaw Convention for the Unification of Certain Rules Relating to International Carriage by Air signed in 1929. 4. The supply or Importation of air, sea and land means of transport used to transport passengers and Goods in accordance with the classification and conditions set forth in the Executive Regulations of this Decree-Law. 5. The supply of Goods or Services or the Importation of Relevant Goods related to the means of transport set out in Clause (4) of this Article, which are designated for the operation, repair, maintenance or transformation thereof. 6. The supply or Importation of rescue aircraft and salvage ships for rescue and assistance by air or sea. 7. The supply of Goods and Services related to Services of the transport of Goods or Passengers aboard land, air or sea means of transport, in accordance with the provisions of Clauses (2) and (3) of this Article, which are designated for consumption on board; or anything consumed by any means of transport, any installations or addition thereto or any other use during the transport process.

المادة 46

Exempted Supply The following supplies shall be exempted from the tax: 1. Financial services as specified in the Executive Regulations of this Decree-Law. 2. The supply of residential buildings through selling or leasing the same, except for those zero-rated in accordance with Clauses (9) and (11) of Article (45) of this Decree-Law. 3. The supply of vacant lands. 4. The supply of local passenger transport. The Executive Regulations of this Decree-Law shall establish the conditions and controls for exempting the supplies mentioned in the preceding Clauses from the tax.

المادة 47

Supply Composed of more than one Component The Executive Regulations of this Decree-Law shall establish the controls for determining the tax treatment of any supply composed of more than one component for a single price, if each component is subject to a different tax treatment.

المادة 48

Reverse Charge 1. If the Taxable Person imports the relevant Goods or relevant Services for the purposes of the Business thereof, such Person shall be deemed to have made a taxable supply by himself and shall be responsible for all the Tax obligations and calculating the Due Tax thereon. 2. Notwithstanding the provisions of Clause (1) of this Article, in case that the final destination of the Goods when entering the State is another Applying State, the Taxable Person shall pay the Due Tax on Importation of relevant Goods according to the mechanism specified in the Executive Regulations of this Decree-Law. 3. If a Registrant makes a taxable supply in the State of any crude or refined oil, unprocessed or processed natural gas or Pure Hydrocarbons to another Registrant and the Recipient of Goods intends to either resell the purchased Goods as crude or refined oil, unprocessed or processed natural gas or Pure Hydrocarbons, or use the same to produce or distribute any type of energy, the following rules shall apply: a. The Registrant making the supply shall not charge the Tax on the value of the supply of Goods stated in this Paragraph. b. The Recipient of Goods shall calculate the Tax on the value of Goods supplied thereto and shall be responsible for all Tax obligations and calculating the due tax thereon. 4. The provisions of Clause (3) of this Article shall not apply to any of the following cases: a. If the Recipient of such Goods fails, before the date of supply, to submit a written confirmation to the supplier that his acquisition of the Goods is for the purpose of resale or to be used for producing and distributing any type of energy. b. If the Recipient of such Goods fails, before the date of supply, to submit a written confirmation to the supplier that he is a Registrant and the supplier fails to verify the Tax Registration of the Recipient of such Goods by the means approved by the Authority, in accordance with the data contained in the confirmation. c. If the taxable supply is zero-rated, in accordance with Clause (1) of Article (45) of this Decree-Law. d. If the taxable supply includes a supply of Goods or Services other than the Goods set out in Clause (3) of this Article. 5. If the Recipient of any Goods of crude or refined oil, unprocessed or processed natural gas, or Pure Hydrocarbons confirms in writing to the supplier that he is a Registrant for the purposes of applying Clause (3) of this Article, the following shall apply: a. The supplier shall not be responsible for calculating the tax related to the supply unless he knows or is supposed to know that the Recipient is not a Registrant on the date of supply. b. The recipient shall be obligated to calculate the Due Tax for the supply. 6. If the supplier mentioned in Paragraph (a) of Clause (5) of this Article is supposed to know that the Recipient of Goods is not registered for tax purposes on the date of supply, the supplier and Recipient of Goods shall be jointly and severely liable for the Due Tax and relevant fines in relation to the supply. 7. The Executive Regulations of this Decree-Law shall determine the following: a. Conditions and cases of applying the mechanism set out n Clause (1) of this Article. b. Additional duties related to record keeping for calculation of the Tax according to the mechanism set out in Clause (1) of this Article. c. The Cabinet may issue a resolution identifying other Goods or Services that are subject to the reverse charge mechanism, along with identifying terms and conditions related thereto.

المادة 49

Importation of Relevant Goods The person other than the registrant shall pay the due tax on the importation of relevant goods from outside the applying states at the date of importation according to the payment mechanism specified by the Executive Regulations of this Decree-Law.

المادة 50

Designated Area The "Designated Area" that meets the conditions established in the Executive Regulations of this Decree-Law shall be treated as being outside the State.