Update on the introduction of VAT in the GCC
February 12, 2016
There has still been no formal announcement regarding the introduction of VAT though there has been speculation in the press in several countries and various comments from Government ministers. Various time lines have been suggested but we understand the position is as follows.
We expect a formal announcement by the GCC in the near future that the framework has been agreed between the six Member States (comprising the United Arab Emirates Bahrain, Saudi Arabia, Kuwait, Oman and Qatar). Following this, within a few months, we anticipate at least two or three Member States (if not all) to announce that they are introducing VAT and that there will be a transition period of around 12 - 18 months. Our best judgement at this stage is that VAT will be introduced in some GCC countries from 1 January 2018 (UAE, Saudi Arabia and Oman look the most likely candidates at present).
PwC is holding VAT workshops in the various GCC countries to update clients on the latest position and to discuss in more detail the issues around implementation. Following the workshop in Dubai on 27 January there is one planned for Oman on 14 March (Oman is likely be one of the first to adopt VAT). We are also planning VAT workshops in Saudi Arabia and will have dates confirmed for these shortly.
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