As the first two Gulf states, Saudi Arabia and UAE, join this week the other 160-plus countries with a VAT regime, the old objection to VAT – that it causes inflation – has arisen. To counter this, both countries have implemented strict checks on abuse of the change. For example, the UAE’s tax agency inspection …
Saudi Arabia and the United Arab Emirates (UAE) have today become the two latest states to impose Value Added Tax on their consumers. From midnight, 5% VAT became due on most transactions, including between companies (but with the right to reclaim). GCC 6 states and VAT In 2016, the six members of the Gulf Cooperation Council …
Oman has declared that it will not implement Value Added Tax until at least 2019. The delay has been proposed to allow more time for businesses to prepare for the launch of the new indirect tax. Tariffs on some goods, including cigarettes and carbonated drinks, will go ahead in 2018. The country is one of …
The six member states of the Gulf Co-operation Council agreed under the Gulf VAT Treaty this year to introduce 5% VAT as a harmonised, VAT union. Below is an update of the progress to date:
As the six Arab Gulf states prepare for the launch of 5% VAT from 1 January 2018, many questions and concerns remain unaddressed. Legal Delays The principle concern is that no legislation has been published yet – although the GCC Unified VAT Framework Agreement has been published this month. This risk will be compounded by …
The decision by the Supreme GCC Council to implement VAT in the six GCC countries was taken in 2016. Keep up to date with the latest news and developments for Oman as they happen with VATlive. Oman have declared recently that it will not implement VAT until at least January 2019 despite facing further credit …
The Gulf Co-operation Council, which incorporates six Arab Gulf States, last week published its VAT Treaty, outlining the proposed January 2018 common VAT regime. The six GCC states are: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. This framework agreement outlines the structure of the harmonized VAT regime across the six states, and will …
The six members of the Gulf Cooperation Council have confirmed the supplies which will be zero-rated for VAT purposes. This means they will be charged without VAT, but suppliers can reclaim any input VAT incurred. The list includes: Education Oil & gas Domestic transportation Health services Real estate Basic foodstuff (with central approval) The GCC …
From the 1 January 2018, the six Gulf Co-operation Council (GCC) states will implement 5% VAT. The six countries are: Bahrain; Kuwait; Oman; Qatar; Saudi Arabia and the United Arab Emirates. Whilst legislation for the indirect tax has yet to be published, local businesses, and companies selling into the region, should review some of the …
Many businesses trading in the Arabian Gulf region remain unprepared for the implementation of Value Added Tax in the six Gulf Co-operation Council states. This puts them at risk of delays in product deliveries, invoicing sales, settling payments and being subject to potential audits and fines. The delay in the publication of legislation or guidance …
