Transfer of tax liability to subsidy recipients

The General Financial Directorate (“GFD”) has issued a standpoint on the impact of transferring the VAT liability to subsidy recipients.

The GFD specified that transferring the tax liability in no way affects the entitlement or exclusion of the possibility of subsidy recipients to pay VAT from the funds provided.

As the GFD stated in the standpoint, transferring the tax liability is simply a different procedure in respect of filing a VAT return and paying the VAT.