Introduction of New Article 79 – Statute of Limitations for VAT
Key changes are listed below in simple terms.
FTA can conduct a Tax Audit/ Tax Assessment after 5 years in the following exceptional cases.
- When FTA notifies of the Tax Audit before the 5th year, provided that the Tax Audit/Tax Assessment is completed within 4 years from the date of such a notice.
- When the Audit or Assessment relates to a Voluntary Disclosure submitted during the 5th year, provided that the Tax Audit/ Assessment is completed/issued within 1 year from the date of Voluntary Disclosure submission.
- Where a separate Cabinet Decision is made.
(Voluntary Disclosures are not allowed to be submitted after 5 years from the end of the relevant tax period.)
