Kuwait Ministry of Finance Announce Introduction of VAT
The tax authorities in Kuwait recently announced that it will finally introduce Value Added Tax (VAT) at 5% from 1st April 2021.
Kuwait is part of the Gulf Cooperation Council (“GCC”) and all of the six countries of the GCC have agreed to implement a pre-agreed VAT regime of 5% by 2021. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. To date, only Saudi Arabia, UAE and Bahrain have implemented their own VAT laws, so it is expected Oman will confirm their implementation date soon.
The indirect tax is being introduced as the economy seeks to rebalance its over reliance on oil revenues as worldwide oil prices have considerably fallen from over $125 per barrel to only $75 p/b in the past five years.