VAT has been enforced by the Federal Tax Authority since January 1, 2018. VAT registration is compulsory for businesses with an annual turnover threshold of Dhs 375,000, and you can register online. The GCC standard rate of 5% is applied to goods and services produced and consumed within the UAE at a federal level, with exports subject to zero VAT rate. With annual revenue below Dh150m, you need to file a return quarterly. VAT invoices must be kept for at least five years, with penalties for filing incorrect returns.

VAT in Saudi Arabia

VAT was introduced on January 1, 2018 with a standard rate of 5% applying to the majority of goods and services within the Kingdom. There’s no VAT on exports. For businesses with an annual turnover of SAR 375,000, VAT compliance is compulsory. If your turnover is SR 40m or less, you need to file a quarterly tax return. To register to pay online, you must first be registered at General Authority for Zakat and Tax. Be aware that there are fines for filing late.

VAT in Kuwait

The GCC standards are expected to be implemented in 2019, with a 5% VAT rate and typical exemptions. Other details are likely to be published in the coming months.

VAT in Qatar

The GCC standards and a VAT rate of 5% are expected to be implemented when the Ministry of Finance for Qatar introduces the policy in 2019. The specifics regarding domestic legislation are likely to be announced in upcoming months.

VAT in Bahrain

It’s expected that the GCC standard rate of 5% will be enforced when VAT is implemented in 2019. The Ministry of Finance for the Kingdom of Bahrain has named Ali Khalil Hashim as Director of Value Added Tax.

VAT in Oman

The Secretariat General of Taxation for the Sultanate of Oman is expected to echo the work of the UAE when it comes to VAT implementation and policy in 2019. Specific industries likely to be subject to a zero VAT rate include life insurance, health care, local transportation and those pertaining to precious metals.
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