|01 February, 2017

Taxing times: Saudi Arabia has approved plans for VAT, who will be next?

The new tax is expected to be implemented by January of next year

01 February 2017

Saudi Arabia’s Council of Ministers approved late on Monday a unified agreement by the Gulf Cooperation Council (GCC) six states to impose a 5 percent value-added tax (VAT) that was reached in early 2015. Read more here.

The new tax is expected to be implemented by January of next year, but none of the GCC countries have yet officially announced any details regarding the products and services the tax will be applied to or the timeframe for its implementation.

The Chief Financial Officer of Dubai-based courier Aramex said on Monday he expects some updates on the plans for VAT in the coming weeks, but he added that he believes the new tax is unlikely to have a serious impact on his company’s business. Read more here.

Tax analysts had last year told Zawya that the United Arab Emirates (UAE) is most likely to lead the GCC in announcing VAT details, to be followed by Saudi Arabia. Read more here.

GCC countries are looking to VAT to help boost their revenues after they were badly hit by the drop in oil prices since mid-2014. Read more here.

For news and analysis on the issues click here for Zawya’s Special Coverage on the GCC's plans for VAT.

© Express 2017

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