VAT News

Kuwait Announce Introduction of VAT in 2021

It is Kuwait will not implement a VAT scheme before 2021 at the earliest, but will however continue to phase in ‘excise tax’ following an announcement from the Budget Committee in Kuwait.

In their announcement, the budget committee alluded to the introduction of a 5% VAT rate on 1st April 2021,the reasons given were that the finance ministry believes they need to accelerate the process of introducing an excise tax on goods such as fizzy / energy drinks and tobacco products first.

The state is experiencing pressures caused by reducing global oil prices, and much like the other wealthy GCC states, have jointly agreed to introduce a 5% VAT rate across the Gulf; with Saudi Arabia, UAE & Bahrain leading the charge with systems already in place in 2019.

Revenues generated from the new VAT could be huge; the IMF believes the United Arab Emirates will recoup approximately 2% of their GDP through the introduction of VAT.

Related articles

Significant Changes to Polish VAT System

Discover a comprehensive review of the implemented and upcoming changes to the Polish VAT system.

Read more
Impact of Brexit on UK VAT

VAT expert and VATGlobal CEO, Gareth Kobrin explains the impact of Brexit on UK businesses.

Read more
VAT Gap Report Highlights Significant Losses in VAT Revenue Across Europe

EU countries lost €137 billion in VAT revenues in 2017

Read more