VAT introduction in the Gulf States
The Gulf Cooperation Council (GCC) had decided that its 6 member countries (Bahrain, Kuwait, Oman, Saudi Arabia, United Arab Emirates and Qatar) ......
should introduce a VAT system, modeled on European VAT, by the end of 2018.
This decision was adopted in the context of the sharp decline in oil revenue in recent years. However, so far only Saudi Arabia and the United Arab Emirates (these two are also the largest markets for all projects) have implemented this decision.
Unlike in Europe where there are different rates of VAT everywhere, the Gulf States will only start with a single tax rate, and that figure will be 5%. Food, medicines and medical devices should be at 0%.