Gulf Cooperation Council: VAT Rate of 5% to be Introduced in 2018
Type
E-journal
Date
24 Feb 2016
Jurisdiction
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates
Taxonomy
VAT
Copyright
LexisNexis
Analysis
The Gulf Cooperation Council countries have announced they have agreed to introduce a VAT rate of 5% in 2018.
However, the tax won't be applied on specific industries like education, and health care, while staple food items will also be exempted from VAT.
The UAE is predicted to produce almost USD 2.72bn to USD 3.26bn as a result of introducing VAT in the first year of implementation alone.