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E-Business Suite Release 12: United Arab Emirates VAT Introduction, January 2018 (Doc ID
2314357.1)

APPLIES TO:

Oracle Financials for EMEA

Oracle E-Business Suite
Information in this document applies to any platform.

MAIN CONTENT

Oracle E-Business Suite: India Goods and Service Tax (GST) (August 2016), Release 12

In this Document

Section 1: Introduction
1.1 Purpose
1.2 United Arab Emirates VAT Introduction
Section 2: Oracle E-Business Suite Release 12 Solution
Section 3: Implementation
Section 4: Download Details
Section 5: Government of UAE VAT Introduction Updates
Change Record

Section 1: Introduction

1.1 Purpose

The objective of this note is to assist customers of E-Business Suite to understand the status of the Legislative Update:
United Arab Emirates VAT Introduction

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THIS DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND IS INTENDED SOLELY TO ASSIST YOU IN PLANNING
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ARCHITECTURE, IT MAY NOT BE POSSIBLE TO SAFELY INCLUDE ALL FEATURES DESCRIBED IN THIS DOCUMENT
WITHOUT RISKING SIGNIFICANT DESTABILIZATION OF THE CODE.

1.2 United Arab Emirates VAT Introduction

In February 2017, all Gulf Cooperation Council (GCC) countries signed the United Agreement for VAT.

This common VAT framework is an overarching supra-national instrument below which each member state has to enact its
own VAT executive law. To date, the general approach for the GCC United Agreement for VAT is largely consistent with the
European model.

On 23-Aug-2017, UAE published its federal decree law on its website. The detailed Executive Regulation, providing
guidance on VAT compliance processes, will be provided at a later date. The published federal decree outlines the
procedures that businesses must adhere to for governance purposes in respect of key VAT components:

Scope of the VAT, responsibility of tax payers, definition of VAT elements (supply of goods and services, special
cases of supply, deemed supply, place of establishment)
A 5% VAT rate on supplies and imports, a zero rate on supply of goods and services within other GCC states which
have implemented VAT, zero-rated supplies list, and exempt supplies such as financial services, including insurance,
land, and passenger transport
Tax Registration:
The UAE VAT registration threshold is AED 375,000 per annum – voluntary registration for turnover above
AED 187,500 per annum
Registration exceptions, de-registration instances, procedures, controls
Calculation of VAT registration threshold
The VAT registration portal is now open for registering in time for the 1 January 2018 VAT launch
Date of supply, value of supply/imports/deemed supply/special cases
Place of supply of goods and place of supply of services rules, special cases
Reverse charge application for imports and movements from other GCC VAT implementing Member States
Tax treatment in case of Designated Zones, although details of the liability position is expected to be more clearly
defined through executive laws. It refers to Designated Zones being outside of the state and VAT exempt
Calculation of due tax, recoverable input tax in the tax period and in various instances, conditions of input tax
adjustments like in case of capital assets scheme, general conditions of adjustments
Tax invoice and its conditions of issuance: issuance of a tax Invoice within 14 days as of the date of supply,
rounding method to be used not defined yet, invoices in foreign currency to be translated to UAE Dirhams
Tax return: tax period as well as content are yet to be determined, as well as submission procedure and conditions
for a simplified tax return
Payment of tax and special cases
Violation and penalties
Record keeping of financial justification documents and accounting details retained for five years
Transitional rules

Section 2: Oracle E-Business Suite Release 12 Solution

The Federal Decree Law holds a lot in terms of VAT component definitions and VAT rules, but nothing so far that Oracle E-
Business Suite Release 12E-Business Tax cannot provide through its extensive functionality for VAT calculation and
reporting. E-Business Tax is configurable and scalable to enable adding and maintaining country specific tax rules and
content.

Section 3: Implementation
Oracle E-Business Tax
Tax Configuration
Oracle E-Business Tax
Implementation Guide PDF
Oracle E-Business Tax
User Guide PDF
Oracle E-Business Tax Reporting (EMEA Tax Reporting)
Guide PDF

Section 4: Download Details

There is no patch available for United Arab Emirates VAT Introduction. Please follow the implementation details mentioned
above. Oracle will assess the content of the pending executive regulation for any impact on E-Business Suite.

Section 5: Government of UAE VAT Introduction Updates

Legal compliance target: January 1, 2018

Main Government Status Comment

Steps
 Complete GCC countries signed the United Agreement for VAT on 15-Feb-2017. The Unified
Signature of the United Agreement for VAT of the Cooperation Council for the Arab States of the Gulf was
Agreement for VAT by published in English in its issue number 4667 dated 20-Apr-2017. This agreement is to
the 6 member states of set forth the unified legal framework to introduce VAT in the GCC states, which will be
GCC imposed on the supply of goods & services

VAT awareness sessions Complete UAE Ministry Of Finance (MOF) started to launch VAT and Excise awareness sessions
on 23-Mar-2017
Publication of the Complete The UAE MOF issued The landmark Federal Law No. (7) of 2017 for Tax Procedures on
Federal Tax Procedures 11-Jun-2017 that describes the interactions between Tax Payers and the Federal Tax
Authorities:

Definitions and Scope of Application of the Law

Tax Obligations
Voluntary Disclosure
Tax Procedures
Objections
Refund and Collection of Tax
General Provisions

VAT FAQ Complete The UAE MOF published the details of the VAT FAQ on their website on 9-Jul-2017
Publication of Federal Complete The UAE MOF published the Federal Law No 8 of 2017 on VAT on 23-Aug-2017 that
Law defines:

Definitions
Tax Scope and Rate
Supply
Tax Registration and Deregistration
Rules Pertaining to Supplies
Zero Rates and Exemptions
Calculation of Due Tax
Tax Period, Tax Returns, Payment and Reclaiming of Tax
Violations and Penalties
General Provisions
Closing Provisions

Publication of Federal Complete The UAE MOF released the Cabinet Decision (36) of 2017 on Executive Regulation on
Tax Procedures - Tax Procedures on 24-Sep-2017. That text describes:
Continued
How to keep Accounting Records and Commercial Books
How to Register and De-Register for Tax Purposes
Tax Obligations
Voluntary Disclosure
Tax Notifications
Tax Agents
Tax Audits and the right to conduct Audits
Tax Assessment and the Administrative Penalties Assessment
Tax Refunds
Bankruptcy Cases
Disclosure of Information
Reduction in or exemption from Administrative Penalties
Executive Regulation of Pending The Executive Regulation shall set forth special provisions related to the
the Federal Law implementation of the Federal Law for areas like:

Determination of thresholds
Place of supply detailed cases
Zero rated & exempt transaction conditions
Reverse charge mechanism
Designated Zones treatment
Conditions of VAT recovery and VAT adjustments
Content of tax invoice and rounding method to be used
Duration of Tax period
Tax return content and procedure of transmission
And much more

Change Record
This document will be updated with new information as it becomes available.

Date Description of Change

5-Oct-2017
Initial publication

My Oracle Support Knowledge Document by Oracle E-Business Suite Development

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

REFERENCES

NOTE:871204.1 - E-Business Suite Financials Legislative Updates Center

NOTE:973912.1 - E-Business Suite Globalization Center
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