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.