(Cabinet Decision No. (26) of 2018 on the Refund of Value Added Tax Paid on Services Provided in Exhibitions and Conferences)

Introduction:

In a bid to support and facilitate the thriving exhibition and conference sector, the Authority has introduced a groundbreaking decision for the refund of Tax to suppliers of such services. The move comes as a welcome relief to eligible suppliers, streamlining the process of tax refunds while adhering to specific criteria to ensure fairness and compliance. The newly issued decision outlines the conditions that suppliers must meet to avail themselves of the refund and sets the stage for its seamless implementation.

Article (2) – Eligibility for Tax Refund:

The Authority allows for the return of Tax to suppliers engaged in offering Exhibition and Conference Services, subject to the fulfillment of the following essential conditions:

• Timely Refund Request:

Suppliers seeking the Tax refund must duly request the refund on their Tax Return, and the refund request must correspond to the same Tax Period during which the Exhibition and Conference Services were provided.

• Refund Amount Ceiling:

The amount requested for refund by the Supplier should be equal to or less than the Tax initially charged on the supply of Exhibition and Conference Services.

• Non-Presence of Place of Establishment:

To qualify for the refund, the Recipient of the Exhibition and Conference Services must not have a Place of Establishment or a Fixed Establishment within the State.

• Non-Registration Status:

The Recipient of the Exhibition and Conference Services should not be a Registrant or obliged to register for Tax in the State.

• Outstanding Tax Payment:

The Recipient must not have already paid the Tax amount to the Supplier.

• Written Declaration:

As part of the refund process, the Supplier must obtain a written declaration from the Recipient, affirming the absence of a Place of Establishment or Fixed Establishment within the State, and non-obligation for Tax registration.

Article (3) – Implementation through Executive Decisions:

The Ministry of Finance will take charge of issuing the necessary executive decisions to ensure the smooth implementation of the provisions outlined in this Decision. These executive decisions will provide further guidance to both suppliers and recipients of Exhibition and Conference Services on the refund procedure, necessary documentation, and compliance measures.

Article (4) – Abrogation of Conflicting Provisions:

In a bid to maintain clarity and consistency, any existing provision that contradicts or contravenes the terms of this Decision will be rendered null and void.

Article (5) – Effective Date and Publication:

The Decision shall take effect immediately from the date of its issuance. To ensure widespread awareness and understanding, the Decision will be published in the official Gazette, making it accessible to all concerned parties.

Conclusion:

The new Decision for the refund of Tax on Exhibition and Conference Services marks a significant step in supporting the industry and streamlining tax-related procedures. By adhering to the specified conditions, suppliers can now enjoy a simplified refund process, while recipients can benefit from enhanced transparency and compliance measures. The implementation of this Decision is set to contribute to the growth and vibrancy of the exhibition and conference sector while bolstering the overall economic landscape.