The main changes to the VAT rules include
- allowing input VAT credit for taxable supplies to persons offering Islamic financial business for sale-based financing,
- expanding the time of supply rules for such goods,
- adding Islamic financial business and takaful to the definitions,
- requiring tax returns from takaful business managers, and
- allowing the Commissioner General to re-characterize Islamic financial arrangements for tax purposes.
These changes will take effect on July 1, 2023.
Source Orbitax
