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Post By: admin December 04 2020

Expo 2020 Dubai And Its Tax Impact

Considering the fact that the EXPO 2020 dates are approaching, the entities involved in the global exhibition in their various capacities are expected to assess their tax responsibilities and ensure compliance with the VAT in UAE.

Are activities relating to Expo 2020 subject to UAE VAT?

Since the EXPO 2020 is hosted by Dubai, within UAE mainland, UAE VAT law will be applicable to EXPO 2020 participants. FTA has issued specific guidelines with respect to the activities of the EXPO 2020 participants, which shall be strictly followed by them.

How UAE VAT will impact Expo 2020 participants?

As EXPO 2020 participants have to ensure compliance with UAE VAT rules, it is important that they have to check whether the mandates as specified in the FTA guidelines are applicable to them or not relating to VAT registration, VAT return filing, VAT refund application, special relaxation on import VAT etc.

Is UAE VAT registration mandatory for Expo 2020 participants?

The regulatory requirement for VAT registration in UAE of an entity is mandatory if its taxable supplies and imports in UAE exceed or expected to exceed the threshold limit for mandatory registration which is AED 375,000. So EXPO participants have to review their business activities and check if they meet the above condition for mandatory registration. If yes, then they have to complete the VAT registration with FTA by filling and submitting the specific application form with FTA. If no, then the participant does not need to register for VAT in UAE.

Is filing of VAT return in UAE mandatory for Expo 2020 participants?

Filing of VAT return with FTA is mandatory for any UAE VAT registered entities. Hence if the EXPO 2020 participant is already registered for UAE VAT, it has to file the periodic VAT returns as specified by FTA. In other cases, where the participant is not VAT registered in UAE, filing of VAT returns is not required and if the participant is eligible for a reclaim of VAT refund, there are other options to apply for such refunds separately by following the guidelines as issued by FTA. If you have any queries on VAT compliance requirements, it is always recommended to consult with tax experts in the region.

Can Expo 2020 participants reclaim the input VAT incurred on their expenses?

FTA has listed down the specific type of expenses, ranging from Category A to category E for which the EXPO 2020 participants can reclaim VAT refund. The participants have to carefully review the nature of their expenses incurred relating to EXPO 2020 and determine whether their expenses fall under any of the categories as per the list to confirm their eligibility for claiming VAT refund.

What are the procedures for reclaiming the input VAT on expenses incurred by Expo 2020 participants?

Once the EXPO 2020 participant confirms its eligibility of expense to reclaim VAT, following steps to be followed for the refund process:

  • If the eligible expense falls under Category A or B of the approved types of expenses for refund, then participant shall ensure that it holds Certificate for Entitlement issued by the Bureau Expo 2020 Dubai before proceeding for the refund procedure.
  • If the participant is already registered for UAE VAT, then a refund of VAT can be claimed through its regular VAT returns.
  • If the participant is not registered for UAE VAT, then refund of VAT can be claimed through a special refund application, which will be then reviewed by the Bureau and if approved, VAT refund will be processed by FTA.

What are the tax implications on import of goods by Expo 2020 participants?

The regulation has provided special relaxation towards the tax on import of goods by an EXPO 2020 participant which is falling under the prescribed category of expenses (Category A and B), provided the participant holds the certificate of Entitlement. In respect of such imports, EXPO 2020 participants can use the special TRN (Tax Registration Number) allocated to the Bureau Expo 2020 Dubai during the clearance of customs formalities after coordinating with the Bureau. Once this special TRN is used, no import VAT will be applied to those goods. Also, it is to be noted that once the participant gets exemption from import VAT, the same cannot be included in any VAT refund application.

How CDA can assist you in your activities relating to Expo 2020?

CDA have competent and qualified professionals who can assist you in various ways as below:

  • To support in various registration activities, filing of applications with Bureau Expo 2020 Dubai and further correspondences in this regard
  • To maintain proper accounting records
  • To ensure the completeness of the VAT return or refund application as applicable to you
  • To keep you informed about the various regulatory updates in UAE and guide you in areas as relevant to you
  • To provide you with accounting, tax, compliance, advisory and other consultancy services

This brings us to the completion of our discussion on Expo 2020 Dubai and its tax impact. We hope you got a clear idea of the impact of tax on Expo 2020 Dubai. So, if you have some other questions in your mind, or you are seeking some other information related to Expo 2020 Dubai and its tax impact, please contact CDA. Our expert will call you back immediately and will offer you a one-hour free consultation.