Legislation Details
- Full Title: Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques
- Law Type: Cabinet Resolution
- Law Number: No. (82) of 2022
- Issued Date: 16 Aug 2022
- Effective Date: 29 Oct 2022
- Official Gazette: No. 734
- Sector: Tax
- Status: Active
- Number of Articles: 21
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution regulates the refund of input tax incurred by donors for the construction of mosques, as well as the refund of input tax incurred by operators for the ongoing operation and maintenance of mosques in the UAE. The purpose is to provide financial relief and incentives for the building and operation of mosques, which are important religious and community facilities. The Resolution establishes the eligibility criteria, application procedures, and administrative responsibilities for these tax refunds, which can benefit both private donors and the entities responsible for mosque operations. (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Arts. 1-8)
What is the scope and purpose of this law?
The Cabinet Resolution applies to the refund of input tax incurred by donors for the construction of mosques, as well as the refund of input tax incurred by operators for the ongoing operation and maintenance of mosques in the UAE. The purpose is to provide financial relief and incentives for the building and operation of mosques, which are important religious and community facilities. (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Arts. 1-2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- State: The United Arab Emirates
- Minister: The Minister of Finance
- Authority: The Federal Tax Authority
- Tax: The Value Added Tax (VAT)
- Person: The natural or legal person
- Donor: The person or persons who contribute to the mosque's building
- Competent Authority: General Authority for Islamic Affairs, Endowments, and Zakat or the local authority concerned with mosques' affairs
- Refund Application: The request submitted to the Authority or the verification entity by the donor or operator for the refund of the input tax
- Verification Entity: The entity contracted by the Authority to review refund applications
- Input Tax: The tax paid or due by a person when supplied with commodities or services or when importing
- Certificate on the Start of the Mosque's Operation: A certificate granted by the Competent Authority to the donor
- Operator: The person responsible for the mosque's operation and maintenance
- Mosque: The place designated for prayer, including its courtyards, entrances, annexes, and facilities
- Mosque Operation: Commodities and services necessary for religious rituals, enhancement, and expansion
(Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Art. 1)
What are the main obligations and requirements?
The Resolution imposes the following key obligations and requirements: 1. Donors must have incurred input tax directly related to the mosque's construction, which must be approved by the Competent Authority. (Art. 2(1)(a-b)) 2. Donors must possess a "Certificate on the Start of the Mosque's Operation" issued by the Competent Authority. (Art. 2(1)(c)) 3. Donors must either deliver the mosque to another approved person or operate the mosque themselves with the Competent Authority's approval. (Art. 2(1)(d)) 4. Operators must incur input tax directly related to the mosque's operation and maintenance, and the mosque must be registered with the Competent Authority. (Art. 4(1)(a-b)) 5. Operators must have a fixed-term written permit from the Competent Authority to operate the mosque. (Art. 4(1)(c)) (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Arts. 2, 4)
What licensing, registration, or approval requirements exist?
The Resolution requires the following approvals and registrations: 1. The mosque's construction must be approved by the Competent Authority. (Art. 2(1)(b)) 2. The donor must possess a "Certificate on the Start of the Mosque's Operation" issued by the Competent Authority. (Art. 2(1)(c)) 3. The mosque must be registered as a mosque with the Competent Authority. (Art. 4(1)(b)) 4. The operator must have a fixed-term written permit from the Competent Authority to operate the mosque. (Art. 4(1)(c), 4(2)) (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Arts. 2, 4)
What rights and protections does this law provide?
The Resolution grants the following rights: 1. Donors have the right to apply for a refund of input tax incurred for the mosque's construction, subject to meeting the eligibility criteria. (Art. 2(1)) 2. Operators have the right to apply for a refund of input tax incurred for the mosque's operation and maintenance, subject to meeting the eligibility criteria. (Art. 4(1)) The Resolution does not specify any additional rights or protections beyond these refund provisions. (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Arts. 2, 4)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this Resolution are: 1. The Minister of Finance, who issues decisions on deadlines and periodicity for refund applications. (Arts. 3(1), 5(1)) 2. The Federal Tax Authority, which reviews and approves/rejects refund applications, and facilitates the refund of approved amounts. (Arts. 3, 5) 3. The Competent Authority (General Authority for Islamic Affairs, Endowments, and Zakat or local mosque authorities), which issues the "Certificate on the Start of the Mosque's Operation" and provides written permits for mosque operators. (Arts. 2, 4) 4. The Verification Entity, which the Federal Tax Authority may contract to review and audit refund applications. (Arts. 3, 5) (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Arts. 3, 4, 5, 7)
What are the penalties for non-compliance?
The Resolution does not specify any penalties for non-compliance.
What fees, charges, or financial provisions are specified?
The Resolution does not specify any fees, charges, or other financial provisions beyond the refund of input tax incurred for mosque construction and operation. (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022)
What exemptions or exceptions apply?
The Resolution does not specify any exemptions or exceptions to its provisions. (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022)
How are disputes resolved under this law?
The Resolution does not specify any dispute resolution mechanisms or procedures. (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022)
What are the key deadlines and time limits?
The Resolution specifies the following key deadlines and time limits: 1. The Competent Authority must issue the "Certificate on the Start of the Mosque's Operation" within 60 days of the mosque's completion or the Resolution's effective date. (Art. 2(3)) 2. Donors who have withheld payments related to mosque construction can submit a subsequent refund application within 1 calendar year of settling those payments. (Art. 3(2)(b)) 3. The Resolution came into effect 60 days after its publication date of 30 August 2022. (Art. 8) (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Arts. 2, 3, 8)
How does this law interact with other UAE legislation?
The Resolution references the following related UAE legislation: - Federal Law No. (1) of 1972, Concerning the Competences of Ministries and Capacities of Ministers - Federal Decree-Law No. (13) of 2016, Establishing the Federal Tax Authority - Federal Law No. (7) of 2017, Concerning Tax Procedures - Federal Decree-Law No. (8) of 2017, Concerning the Value Added Tax (VAT) - Federal Law No. (4) of 2018, Concerning the Organization and Care of Mosques - Federal Law No. (5) of 2018, Concerning Endowments (Waqf) - Cabinet Resolution No. (52) of 2017, Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 Concerning the Value Added Tax (VAT) (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Preamble)
When did this law come into effect?
This Cabinet Resolution came into effect 60 days after its publication date of 30 August 2022, which was 29 October 2022. (Art. 8) The Resolution also specifies that donors and operators can be refunded input tax incurred from 1 January 2018 for mosque construction and operation. (Art. 6) (Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques, 2022, Arts. 6, 8)
Source Documents
This article analyses Cabinet Resolution Concerning the Refund of the Imposed Input Tax from Building and Operating Mosques for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.