When will VAT be implemented in the UAE?

VAT in the Gulf Cooperation Council: current status

The six states of the Gulf Cooperation Council (GCC) resolved a sales tax of five percent in May 2016 and drafted a joint agreement on its introduction. By April 2021, four out of six member states had transposed the provisions of the convention into national legislation.

Saudi Arabia raised the tax rate from 5 to 15 percent on July 1, 2020.

VAT in the Gulf Cooperation Council

country

Date of introduction

Standard rate in percent

Saudi Arabia

January 1, 2018

15

United Arab Emirates

January 1, 2018

5

Bahrain

January 1, 2019

5

Oman

April 16, 2021

5

Kuwait

postponed to 2021

Qatar

unknown

Source: Research by Germany Trade & Invest. Status: April 2021

Additional Information:

GCC: Common VAT Agreement of the States of the Gulf Cooperation Council (GCC)

Saudi Arabia: Value Added Tax Law

UAE: Federal Decree-Law No. 8 of 2017 on Value Added Tax

Bahrain: Decree Law no.48 for the year 2018 Regarding Value Added Tax

Oman: Value Added Tax Law - translation