Unified Agreement For Vat

The GCC VAT Agreement can be defined as the Gulf Cooperation Council (GCC) Single VAT Agreement for the Arab States. The UAE and Saudi Arabia will be the first countries to introduce VAT into the GCC from January 2018, while other Gulf countries will have until the end of next year to implement the tax system. However, the excise duty is envisaged to be transposed in the United Arab Emirates in the fourth quarter of 2017. That`s why companies in the UAE, Saudi Arabia and other Gulf countries are preparing to introduce the VAT system. The VAT and excise agreements concluded under the GCC agreement form the basis of each country`s individual VAT and excise mechanism. Each Member State adopts its own national VAT legislation, with jointly agreed principles based on guidelines. The text of the framework agreement has been published only in Arabic. For your convenience, KPMG is pleased to present an English version of the text of the Framework Agreement, which has been translated directly from the original Arabic document. Single Agreement on Value Added Tax (VAT) of the Cooperation Council for the Arab States of the GulfThe Single Agreement on VAT of the Cooperation Council for the Arab States of the Gulf was published by UM AL-QURA in its number 4667 of H1438/7/24. This agreement aims to define the single legal framework for the introduction of VAT in the GCC countries, which applies to the supply of goods and services.

The Kingdom`s agreement was given by Royal Decree (point m/51 of H3/5/1438). To access the Single VAT Agreement of the Cooperation Council for the Arab States of the Gulf, please follow this link.