GCC Indirect Tax News Roundup – Quarter 4 2025

Major developments included:

• Extensive amendments to Tax Procedures, VAT, and Excise Laws effective 1 January 2026, including aligned limitation periods and transitional refund provisions.
• Revised administrative penalty framework effective 14 April 2026, simplifying calculations and incentivizing voluntary disclosures.
• Introduction of a reverse-charge mechanism for local supplies of specific scrap metal from 14 January 2026.
• Updated VAT Administrative Exceptions Guide, narrowing exceptions & raising documentation standards.
• Enhanced enforcement tied to e‑Invoicing with publication of violations/penalties ahead of mandatory adoption.
• Extended customs duty rates on selected steel products until October 2028.
• Entry into force of new CEPAs with Australia, Malaysia, and Chile, improving trade accessibility.
• Introduction of a new excise tax structure for sweetened drinks based on sugar/sweetener content from 2026.

Kingdom of Saudi Arabia (KSA)

Key updates included:

• Changes to VAT grouping rules.
• New guidance for electronic marketplaces.
• Amendments to customs tariffs.
• Shift towards sugar-based excise taxation, reflecting alignment with broader Vision 2030 regulatory maturity goals.

Oman

Notable developments:

• Introduction of short-term excise relief on soft drinks.
• Continued progress on excise warehousing.
• Advancement of the Fawtara e‑Invoicing programme, including phased rollout planning.

What This Means for Businesses Operating in the GCC

Across the GCC, Q4 2025 signals:

• Increasing pressure to strengthen internal governance, controls, and tax technology capabilities.
• Need to enhance e‑Invoicing readiness, given upcoming mandates across multiple jurisdictions.
• Greater focus on compliance, documentation quality, and proactive risk management, particularly in excise and VAT.