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

HMRC Opens Investigation into Uber Over £1bn Unpaid VAT

HMRC is looking to whether Uber should be classified as a transportation company, and therefore liable to pay VAT in the UK.

Read more
UAE Averaging 8,000 VAT Refunds Every Day

500 days since it's introduction, VAT refunds in the UAE are soaring.

Read more
UK MP Calls for Scrapping VAT Applied to Sunscreen

UK MP Chris Bryant calls for scrapping the 20% VAT rate applied to sunscreen products, encouraging more people to regularly use it.

Read more