The Kingdom of Saudi Arabia earlier this year released a unified agreement for value added tax (VAT) of the cooperation council for the Arab States. The unified agreement for VAT in the Gulf Cooperation Council (GCC) sets out the principles under which the new indirect tax system will be implemented in each of the GCC member states.
Key points from of the VAT framework agreement for the GCC include:
Each GCC member state will need to enact its own domestic legislation to implement VAT locally by 2018.
The text of the framework agreement has been available only in Arabic. KPMG has prepared an unofficial English language version of the framework agreement text, translated directly from the original Arabic document. Read the English version of the VAT framework agreement [PDF 654 KB]
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