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JSRS Certification Must for VAT Zero-Rating on Oilfield Supplies

Registration under the Joint Supplier Registration System (JSRS) – a single-window vendor certification portal introduced by the Ministry of Energy and Minerals – is mandatory for businesses seeking to apply the zero-rating provision for Value Added Tax (VAT) on oil and gas-related goods and services, legal experts have affirmed. The explanation came in a recent advisory issued by well-known professional services firm Deloitte to clients. Clarifying the certification requirements for zero-rating Oil and Gas related supplies, the firm cited a letter dated April 13, 2021, from the Ministry of Energy and Minerals, confirming that registration under the JSRS system will be acceptable to the Tax Authority in lieu of certifications from the Ministry itself as stipulated under Executive Regulations for VAT. The recent regulations issued by the Tax Authority specify that the supply of goods and services related to oil, oil derivatives and natural gas, shall be zero-rated, provided the firms in question are licensed by the Ministry of Energy and Minerals.
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  • #MEM
  • #VAT
  • #Tax
  • #JSRSCertification
  • #BGIinsights
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