UAE hopeful on VAT rollout across GCC

Feb, 2017

Policy-makers in the six-nation Gulf Cooperation Council (GCC) are aiming to introduce a 5 per cent value-added tax at the start of next year despite administrative and technical obstacles, a senior UAE finance official said on Sunday.

 

The GCC, its finances strained by low oil prices, has long planned to adopt the tax in 2018 as a way to increase non-oil revenues, but economists and officials in some countries have said privately that simultaneous introduction in all countries may not be feasible.

 

That is because of the complexity of creating the administrative infrastructure to collect the tax and the difficulty of training companies to comply with it, in a region where taxation is minimal.

 

However, Younis Al Khouri, under-secretary at the UAE finance ministry, said GCC governments were planning for an early, simultaneous adoption.

 

“By January 1, 2018, we are aiming to adopt 5 per cent VAT across the GCC,” he said in an interview. Other GCC members are Saudi Arabia, Kuwait, Qatar, Oman and Bahrain.

 

Asked whether some sectors in the UAE might be exempt from the tax to reduce the drag on the economy, Al Khouri said the government was aiming for a 5 per cent rate across the board but parts of seven sectors – education, healthcare, renewable energy, water, space, transport and technology – might get special treatment.

Source credit: Khaleejtimes.com

We focus on advice consulting business financials Get A Quote

 

Related Articles

What is the Adjustment of VAT in Oman?

What is the Place of Supply of Services for VAT in Oman?

What Is The VAT Impact On Medical Sector In Oman?

VAT Registration in Oman: Portal Guidelines

VAT Law in Oman

Tax Invoices and Records in VAT Oman

Place of Supply in VAT Oman

What are Input Tax and its treatment for VAT in Oman?

Top Best Tax Agent in Dubai, Abu Dhabi, UAE | FTA Approved and Registered

Advantages of hiring Tax Agent in Dubai

Which is the Eligibility criteria and requirements to become a tax agent in Dubai?

Which are the Valuable Assistance Tax Agents Can Add To Your Business in Dubai?

Duties and Eligibility for Tax Agent in Dubai

What Is The VAT Impact On Trading Sector In Saudi Arabia

What Is The VAT Impact On Non-Profit Organizations In Saudi Arabia?

What Is The VAT Impact On The Telecommunications Sector In Saudi Arabia?

Tax Representative, VAT Fiscal Representative KSA

What Is The VAT Impact On The Services Sector In Saudi Arabia?

What Is The VAT Impact On Trading Sector In Saudi Arabia

What Is The VAT Impact On Non-Profit Organizations In Saudi Arabia?

Top VAT Services Firm in Riyadh, Dammam, Jeddah, KSA

What Is The VAT Impact On The Telecommunications Sector In Saudi Arabia?

Tax Representative, VAT Fiscal Representative KSA