The Gulf Cooperation Council (GCC), comprising Oman, Bahrain,
Kuwait, Qatar, Saudi Arabia and the United Arab Emirates, has
agreed to formalise a VAT system in its states according to certain
principles; however, the VAT Framework Treaty also allows a degree
of flexibility for each member state, allowing them to opt for
different VAT treatment in relation to certain supplies. For the
sake of business continuity, it is important to obtain advice that
is relevant to the territory in which a business operates, to avoid
being caught by the penalties and ensuing disruption that can occur
in case of non-compliance.
The intention was that the GCC member states would implement
local VAT regimes by 1 January 2018 or at least by the first
quarter of 2018. Formal announcements have already been made by the
United Arab Emirates and Saudi Arabia regarding their roadmap for
putting in place a VAT framework.
