This week the UAE’s President has issued the Federal VAT Decree-Law (Federal Decree-Law No. 8/2017) so we focus on this tax development in this issue. We have requested this Law as a priority from our Publishing Partners, SADER Legal Publishing. We will keep you updated as and when this Law is Gazetted and when it is available on our service.

We have been pleased to add commentary from Clyde & Co and Arendt & Medernach on this latest development. Clyde & Co’s analysis can be found here: http://www.lexismiddleeast.com/doc/2506361_2506370 while Arendt & Medernach’s analysis can be found here: http://www.lexismiddleeast.com/doc/2506689_2506691?highlight=Arendt+%26+Medernach These articles join over fifty articles we have published this year on this prospective development which is now becoming a reality.

From 1 January 2018, the 5% tax will be imposed on the import and supply of goods and services at each stage of production and distribution. It includes what is considered a supply and specifies the goods and services which will be zero-rated as well as the exceptions. The tax imposed will be the responsibility of a Taxable Person who makes taxable supplies or what is considered to be a supply or on import.

This week the spotlight is on tax developments in the UAE, where the country’s President has issued the excise tax law covering the taxation of tobacco, fizzy and energy drinks. It will be published in the Official Gazette and come into force on 1 October 2017. Excise tax at 100% will be levied on tobacco and energy drinks and 50% on fizzy drinks (excluding carbonated water) under Federal Decree-Law No. 7/2017. The regulations to the Law will come into force by December 2017. The law details the tax’s general rules and procedures. Article 16 of the law says some products liable for excise which are used in the manufacturing process for other goods also subject to excise taxes could get special discounts. More details will be given in the regulations to the law. Under the law products liable for duty which are exported could be exempted from duty, or be liable for a discounted rate.

Elsewhere, according to local newspaper reports, the UAE’s Federal Tax Authority has announced schools and nurseries will be zero-rated for VAT purposes. The Authority added schools and nurseries should therefore not increase their fees next year. Being zero-rated allows companies and institutions to reclaim VAT paid on business costs and services.

This week the spotlight is on legal and regulatory developments in Qatar, where the Emir has issued a new Law amending the country’s Labour Law and Civil and Commercial Procedures Law. Qatar Law No. 13/2017 amends Qatar Law No. 14/2004 and Qatar Law No. 13/1990. Under the new Law, one or more committees will be set up at the Administrative Development, Labour and Social Affairs Ministry to resolve labour disputes. It will be chaired by a Court of First Instance judge who will be chosen by the Supreme Judiciary Council. Two committee members will be nominated by the Administrative Development, Labour and Social Affairs Minister and one of them will have to have accounting experience.

The Minister will issue a decision to regulate the committee’s work and operations. Its secretariat will be assumed by one or more Ministry employees and this will be stated in the Ministerial Decision. Only the committee will be able to resolve disputes arising from the Law’s implementation or employment contract. It will give a decision on the dispute within three weeks of its first session reviewing it. The committee secretariat will notify both parties in the dispute about the committee’s procedures and decisions through registered correspondence at their residence or business centres, or through other suitable means.

The committee’s decisions will include its rationale, will be binding and will have to be executed immediately. Cases which should be heard and resolved by the committee will not be heard before the courts before they hear them. However, the related courts will continue to see the related cases which were filed before Qatar Law No.13/2017. Before lodging a case with the committee, employees will have to raise concerns with their employer within seven days of being advised of an issue. The complaint will have to be resolved within seven days and if an employee does not receive a response in this time, it will be considered to be rejected. Employees will be able to contact the committee directly where they are dismissed or terminated arbitrarily by an employer and the committee will look into the issue and reach a decision based on the facts.