Article 16 - Deductible Tax

1. A Taxable Person who is eligible to deduct Tax under Article (16) of the Decree-Law may deduct the Tax on his Tax Return for the period in which the right to the deduction arose.

2. For the purposes of Clause (1) of this Article, the value of the deductible Tax is equal to the value of the Tax previously paid on the relevant goods.

3. For the purposes of establishing the value of the deductible Tax under Clause (2) of this Article, at the request of the Authority the Taxable Person shall be required to provide evidence to support the value of the Tax previously paid on the relevant Excise Goods. The Authority shall specify the manner of submitting such evidence in order to confirm the Taxable Person has previously paid the Tax.

4. For the purposes of Clause (3) of this Article, where Tax was paid on the Excise Goods by an another party in the supply chain, the Taxable Person shall retain the following evidence that Tax was paid:
a. A copy of the purchase invoice for the Excise Goods;
b. A declaration from the supplier stating that he paid the Tax and confirming the value thereof;
c. Information which demonstrates to the satisfaction of the Authority that the Excise Goods which are the subject of the claim are the same Excise Goods on which Tax was paid.

5. In circumstances where the Excise Goods have been subjected to Tax in the State, the Taxable Person shall be eligible for a refund of the Tax under paragraph (a) of Clause (1) of Article (16) of the Decree-Law where any of the following applies:
a. They are Exported to outside the Implementing States;
b. They are Exported to an Implementing State and the Tax was paid for the same goods in that State;
c. They are consumed in the course of an international journey departing from the State.

6. Any deduction of Tax will be subject to the conditions or evidence requirements specified by the Authority.