The Federal Tax Administration (FTA) has published a VAT Clarification concerning the main changes to the VAT Decree Law (Decree-Law). The principal amendments to the Decree-Law are as follows:
- new definitions (article 1);
- exception from registration for persons already registered for VAT (article 15);
- deregistration initiated by the FTA (article 21);
- place of supply of goods when the date of supply is determined under article 26(1) of the Decree-Law (article 27);
- clarifying the place of residence of the principal where its agent regularly negotiates and contracts in favour of the principal, or regularly maintains inventory of the principal to fulfil supply arrangements (article 33);
- value of supply and deemed supply between related parties (article 36);
- clarifying the period within which tax credit notes must be issued (article 62);
- clarifying the period within which tax invoices and tax credit notes must be issued (article 67); and
- statute of limitation (article 79 bis).
The amendments to the Decree-Law will come into force on 1 January 2023. The amendments were issued by Federal Decree No. 18 of 2022 on the amendment of certain provisions of Federal Decree No. 8 of 2017 on Value Added Tax.