Zakat Authority launches a guideline for entitlement mechanism added value
Zakat, Tax and Customs Authority has issued a guideline on the method of claim to value-added for businesses that contract with government entities.
Following government competition and procurement system, the authority amended the tax treatment of supplies produced by establishments for the benefit of a government agency.
It explained that the guide illustrates the extent and impact of the tax treatment change with practical and simple illustrative examples to help people understand the differences between the former and current approaches.
The authority’s interactive guide also covers the requirements for producing tax bills following the system’s and rules’ restrictions, fines imposed in cases of non-compliance, and all frequently asked questions about the decision to change tax treatment.
The interactive guide’s launch is intended to change the tax classification of supplies produced for the benefit of a government agency, to make it easier for taxpayers in the private sector who have contracts with government agencies and institutions.
