GCC VAT update
Following the decision to implement a VAT system in the GCC countries from January 2018, it is thought that details of the unified VAT framework which underpins this system will be released within the next 2 weeks.
It has been widely publicised that the framework will be based upon the EU VAT directive, and the majority (up to 80%) of laws will follow from the GCC framework. The remaining 20% will be at the discretion of the national tax authority.
It is anticipated that certain GCC countries will also shortly release their own national VAT legislation. It is understood that zero rating or exemption will be applicable to items such as food items, healthcare services, and education, similarly to the EU VAT system.
Any businesses who have not yet considered the impact that VAT will have on their activities must take action imeediately in order to ensure that adequate systems and operations are in place.