VARIOUS TAX AND REPORTING REQUIREMENTS FACED BY EXPO 2020
As a result of the various tax and reporting requirements faced by Expo 2020 participants, those who participate must maintain accurate records of their transactions. A variety of regulatory authorities in the United Arab Emirates will need to be notified of the transactional and financial details of the event at various stages. Expo participants may struggle to find adequate resources to keep track of records, but by obtaining the services of one of the leading accounting firms in Dubai, the process will be made easier.
In order to accurately categorize and account for the expenses, participants require an expert accountant’s assistance. Expo 2020 participants must categorize their expenses to determine their eligibility for VAT refunds if they claim the expenses incurred.
Expo 2020 is scheduled to be hosted by Dubai in the United Arab Emirates from 1 October 2021 to 31 March 2022. The official participants of the Expo can claim the VAT incurred on the expenses. The Federal Tax Authority (FTA) had announced Cabinet Decision no. 1 of 2020 on the ‘Refund of VAT on Goods and Services connected with Expo 2020 Dubai’ and also released a User Guide for Official Participants of Expo 2020, which explains the conditions/eligibility to claim the VAT refund, the process to be followed to claim VAT, information required to complete relevant forms.
Participants may claim a refund of Tax incurred on the import or supply of Goods or Services provided that the Goods and Services are any of the following:
• In direct connection with the construction, installation, alteration, decoration and dismantlement of their exhibition space.
• In direct connection with the works and activities of organizing and operating the Official Participants’ exhibition space and any presentations and events within the Expo 2020 Dubai site.
• In connection with the actual operations of the Official Participants, provided that the value of each Good or Service for which the Office of the Official Participant makes a claim exceeds the amount set by a decision of the Minister.
• In connection with all operations, services and activities provided for the purpose of participation in Expo 2020 Dubai, whether located within or outside the boundaries of the Expo 2020 Dubai site.
Key takeaways of the Refund Scheme
Eligibility: An Official Participant, holding a valid Expo 2020 trade license number and having no intention to use more than 20% of the exhibition space or presentation for non-official or commercial purposes, is eligible to apply for VAT refund.
How does it work?
Official Participant needs to obtain a Certificate of Refund Entitlement (CRE) from the Bureau Expo 2020 Dubai (Bureau) to claim the refund. The Bureau Expo 2020 Dubai performs the initial check on the refund claims received from the Office of the Official Participants in accordance with the forms prepared by the Authority. Where the refund claim is correct, the Bureau Expo 2020 Dubai makes a request to the Authority to refund the amount.
Where Official Participant is registered for VAT, it shall claim VAT refund via its UAE VAT return. A non-registered participant shall apply for VAT refund through the Bureau by submitting a special refund request.
Documents required for claim of VAT refund by Expo 2020 participants
Essential documents to be maintained by Expo 2020 participants with respect to the tax refund claim are below:
• Expo license
• Certificate of entitlement for applicable participants
• Underlying valid tax invoices and other supporting relating to the amounts reported in the VAT return or refund application
• Customs documents relating to the import of goods
• Documents that prove the employment of and relationships with staff/beneficiaries of participants
• Bank account validation letter from the bank, in case of refunds
Maintenance of additional documents can be required by the Bureau Expo 2020 Dubai or FTA on review by them on a case-by-case basis.
For more information, get in touch with Excellence Auditing now. We can assist you in the Accounting and VAT refund application process.
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Read MoreIn a digital-first economic landscape, countries with a first-mover advantage are rapidly becoming global innovation hubs. The UAE’s implementation for mandatory e-invoicing is one of the steps in that direction. In a bid to help businesses prepare better, the Federal Tax Authority recently announced the extension to the deadline for appointing an Accredited Service Provider (ASP) from 1st July to 30th October, 2026. This extension will enable businesses that are still assessing the regulatory requirements to lay the
necessary groundwork before implementing the system in their operations, while ensuring all compliance obligations are met. While offering flexibility, this also presents an opportunity for owners to closely monitor the systems and controls before the mandatory rollout comes into effect. E-invoicing is steadily reshaping how enterprises operate in the UAE, moving invoicing beyond PDFs, scans, and email-based exchanges.
Under the new framework, invoices will now be generated in XML format, enabling standardised data exchange and direct reporting to the FTA.
The new framework will do more than just improve efficiency and transparency with a seamless exchange of invoicing data, but etch a new chapter in how compliance will look in a digital tax ecosystem.
In a digital-first economic landscape, countries with a first-mover advantage are rapidly becoming global innovation hubs. The UAE’s implementation for mandatory e-invoicing is one of the steps in that direction. In a bid to help businesses prepare better, the Federal Tax Authority recently announced the extension to the deadline for appointing an Accredited Service Provider (ASP) from 1st July to 30th October, 2026. This extension will enable businesses that are still assessing the regulatory requirements to lay the necessary groundwork before implementing the system in their operations, while ensuring all compliance obligations are met. While offering flexibility, this also presents an opportunity for owners to closely monitor the systems and controls before the mandatory rollout comes into effect. E-invoicing is steadily reshaping how enterprises operate in the UAE, moving invoicing beyond PDFs, scans, and email-based exchanges.
Under the new framework, invoices will now be generated in XML format, enabling standardised data exchange and direct reporting to the FTA.
The new framework will do more than just improve efficiency and transparency with a seamless exchange of invoicing data, but etch a new chapter in how compliance will look in a digital tax ecosystem.
E-Invoicing in the UAE
Why This Extension Matters
With the mandatory rollout to come into force from January 2027, the extension does not alter the UAE’s broader e-invoicing timeline. The initial rollout will see businesses generating annual revenues above AED 50 million, leading the transition with smaller enterprises gradually brought in through subsequent phases.
This preparation window showcases the consideration and planning that is required ahead of the rollout. As the system pivots towards e-invoicing, it becomes more than just the exchange of data. It comes down to how businesses manage the data, the reporting process in place, and if they are in sync with the compliance requirements.
Enterprises in Dubai and other emirates are turning their attention towards the quality of the invoice data while ensuring consistency and the ability of the existing systems to support machine-readable invoices.
Another key challenge for organisations that are operating across multiple entities or invoicing platforms will be integration and standardisation. This is where having the right ASP matters. With the implementation timeline moving closer, the demand for the ASP is anticipated to see an increase.
The revised deadline will help businesses get more time to make early planning and conduct accurate evaluation.
Accredited Service Providers
A Key Component of the E-Invoicing Framework
The announcement brings the role of the accredited service providers within the UAE’s e-invoicing ecosystem into the spotlight. With businesses transitioning to incorporate accounting and ERP systems into their operations to generate invoices, the ASP will become the linchpin between them and the regulatory authorities.
ASPs will now not only have to facilitate the exchange of the data but also ensure a standardised structure for invoicing across the UAE’s e-invoicing ecosystem. The support by the ASP will enable ease in compliance and meeting the technical requirements.
The extension also gives significant time for businesses to assess and align an ASP that meets their operational requirements. While for many organisations, this also presents an opportunity to take a closer look at their integrations and carefully understand the ability of the provider to support their existing accounting and ERP systems.
UAE E-Invoicing Penalties
Why Early Preparation Matters
The extension provides additional time for businesses to implement the necessary requirements. But for companies that are still on the fence, this becomes a final call as failure to comply with the requirements and the UAE’s e-invoicing framework may result in financial penalties, including AED 5,000 per month for implementation delays and AED 100 per invoice for non-transmission.
Final Words
The announcement of the extension reflects the UAE’s level-headed approach and pragmatism in establishing the e-invoicing framework as a stepping stone in its broader tax strategy. With countries like Saudi Arabia and India reaping the benefits of their respective e-invoicing systems, the UAE’s phased approach ensures that businesses are equipped with the right tools to ensure a streamlined transition.
The shift towards e-invoicing is a nod to the future, where the tax landscape will see the information travel faster and compliance becoming embedded in critical operations. The new framework is expected to see businesses generate standardised invoices that will drive the new reporting ecosystem forward.