Cabinet Decision No. (26) of 2018

In a move to facilitate the smooth provision of Exhibition and Conference Services, the tax authority has laid out a clear framework for the refund of tax to suppliers. This article sheds light on the essential conditions and procedures that must be met to qualify for a tax refund, providing valuable insights for suppliers operating in the Exhibition and Conference Services sector.

1. Refund of Tax

To be eligible for a tax refund, suppliers must adhere to the following conditions:

1. Refund Request on Tax Return:The supplier must explicitly request the refund of tax related to the provision of Exhibition and Conference Services on their tax return.The request should align with the tax period during which the date of supply of these services occurred.
2. Refund Amount Limitation:The refund request should not exceed the tax charged on the supply of Exhibition and Conference Services.
3. Recipient’s Establishment:The recipient of the services must not have a Place of Establishment or a Fixed Establishment in the State.
4. Recipient’s Registration Status: The recipient must not be a registrant or required to register in the State for tax purposes.
5. Payment Status: The recipient should not have paid the tax amount to the supplier.
6. Written Declaration Requirement: The supplier needs to obtain a written declaration from the recipient, confirming the absence of a Place of Establishment or Fixed Establishment in the State. Additionally, the recipient must affirm that they are not a registrant or required to register for tax in the State.
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Issuance of Executive Decisions:

The Minister of Finance is entrusted with the responsibility of issuing the necessary decisions to implement the provisions outlined in this decision. This reflects a commitment to clarity and effective enforcement of the established framework.

Cancellations

Any provision that contradicts or violates the conditions set forth in this decision shall be abrogated. This ensures a streamlined and consistent application of the tax refund process for Exhibition and Conference Services.

Publication and Implementation:

The decision is set to be implemented from the date of issuance and will be officially published in the state’s official Gazette. This step emphasizes transparency and accessibility, making the information readily available to all stakeholders in the Exhibition and Conference Services sector.

Conclusion

The outlined conditions and procedures for tax refunds in the realm of Exhibition and Conference Services aim to provide a conducive environment for suppliers. It is imperative for stakeholders to familiarize themselves with these guidelines to ensure compliance and take advantage of the opportunities for tax refunds in this sector. The commitment to clear executive decisions and the cancellation of conflicting provisions underscore the authority’s dedication to a fair and efficient tax refund process..

Summary

The tax authority, through Cabinet Decision No. (26) of 2018, introduces a structured process for refunding Value Added Tax (VAT) on services provided in Exhibitions and Conferences. Suppliers seeking refunds must meet specific criteria, including a detailed refund request on their tax return, limitations on the refund amount, and ensuring the recipient lacks a Place of Establishment in the State. The Minister of Finance will issue executive decisions for implementation, emphasizing clarity. Conflicting provisions will be canceled for consistency, and the decision will be published in the official Gazette, highlighting transparency. This framework fosters a favorable environment for suppliers, emphasizing compliance and efficient tax refund procedures.

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