Saudi Arabia has not officially issued a deadline for businesses to register for a new value-added tax (VAT) that is expected to get implemented in the kingdom next year, a Saudi-based analyst said, refuting recent reports made in local media.
All six Gulf Cooperation Council (GCC) countries, which includes Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Oman and Kuwait agreed last year to introduce VAT on January 1, 2018, as a means to diversify government revenue sources and reduce reliance on crude oil exports after the oil prices’ sharp fall that began in mid-2014.
The UAE and Saudi Arabia are seen as the most advanced in terms of their preparations for the introduction of VAT and are likely to lead the region in the implementation of the new tax.
The two countries have recently released several details on procedures related to VAT. However, a Saudi media report on Sunday stating a deadline of August 26 has been set for businesses to register for VAT is not true, according to Turki Fadaak, head of research and advisory at the Saudi-based Albilad Capital investment firm.
“The Saudi official gazette has not published any deadline for companies to register for the VAT,” Fadaak told Zawya in a phone interview on Monday.
For the most recent VAT news in UAE and Saudi Arabia:
UAE president ratifies tax procedures law, paving way for introduction of VAT
GAZT launches public consultation on Value Added Tax (VAT) Draft Implementing Regulations
For Zawya’s VAT special coverage:
© Zawya 2017
