What is GCC VAT?
GCC VAT is an indirect tax that will be levied on goods and services in the member states of the Gulf Cooperation Council. The member states of GCC are Saudi Arabia, Dubai, Qatar, Bahrain, Oman and Kuwait.
GCC countries signed VAT agreement
It is now understood that all six GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) have signed the agreement, paving the way for the introduction of VAT throughout the GCC in 2018.
Who has to pay VAT in UAE?
A business must register for VAT if its taxable supplies and imports exceed AED 375,000 per annum. It is optional for businesses whose supplies and imports exceed AED 187,500 per annum. A business house pays the government, the tax that it collects from its customers.
Do we charge VAT to Saudi Arabia?
For Saudi Arabia, VAT is to be charged at the standard rate to businesses located in any of the GCC states. Accordingly, a business located in a GCC state will be required to pay VAT at the standard rate of 5% in relation to legal services provided in Saudi Arabia (including legal services on IP-related matters)
Is VAT applicable for export from UAE?
According to the United Arab Emirates Federal Tax Law: “Export of goods and services outside the GCC and international transportation are zero-rated. They must be reported in tax returns, but no VAT will apply.” Zero-rated means that the goods are still taxed with the VAT, just at the 0% rate