Saudi Hajj ministry seeks alternative flights for overseas pilgrims

Read the latest updates on the Hajj pilgrimage here

Saudi Arabia's Hajj Ministry has said it is seeking alternative flights for pilgrims from Europe and the US who have had problems with an online portal.

It said the “urgent package of solutions” aims to ensure that everyone chosen for this year’s Hajj in the ballot will be able to go.

The pilgrimage season will begin on July 7 and is the first since the coronavirus outbreak that worshippers from outside Saudi Arabia can attend.

The kingdom introduced a new one-stop portal for overseas visitors to request a Saudi visa and book a package for their pilgrimage.

But some British Muslims said the portal had caused confusion and the ministry said some pilgrims had faced technical problems.

It said there was limited capacity on flights. The first group of pilgrims from Europe, the US and Australia arrived on Saturday.

Saudi Arabia’s embassy in the UK said authorities were “working tirelessly” to ensure that everyone gets a ticket.

The ministry “is working to secure alternative flights and additional seats for pilgrims wishing to travel to Saudi Arabia from Britain, the United States of America and European countries”, it said.

“It is also ensuring the immediate issuance of visas to enter the kingdom. The ministry is in regular contact with those affected by the limited seating capacity and the technical difficulties experienced by pilgrims using the electronic portal.”

It assured visitors that authorities would “follow up [on] the condition of pilgrims in the kingdom and abroad, to ensure their arrival is facilitated before performing the rituals”.

Saudi Arabia’s Supreme Court on Wednesday announced that Hajj would begin on July 7, after the crescent moon was sighted. Applications for foreign visitors were open from June 10 to June 13.

Visitors from abroad must by fully vaccinated against the coronavirus and younger than 65 as of Friday. People who have not made the pilgrimage before were given priority in the ballot.

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1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer