The National Bureau for Revenue (NBR) published, on 24 December 2021, the VAT Rate Change Transitional Provisions Guide under Law No. 33 of 2021, which amended Decree-Law No. 48 of 2018 regarding Value Added Tax to increase the standard VAT rate from 5% to 10% as from 1 January 2022.
Law No. 33 amends certain provisions of the VAT Law and provides for a transition period of one year ending on 31 December 2022. The Transitional Provisions Guide provides an explanation of the rules that apply during this transitional period. It is important to note that there is no change to the VAT treatment of supplies that are currently treated as exempt or zero-rated.