- Saudi Arabia has approved amendments to the GCC Unified VAT Agreement, and other GCC states are expected to follow.
- The changes affect intra-GCC goods supplies, supplies to individuals and non-registered persons, VAT rates, import VAT, and tax authority information sharing.
- The goal is to better align VAT with the destination of goods, reduce double taxation and uncertainty, and improve cross-border compliance.
- Import VAT rules may allow collection at first entry into the GCC and later settlement with the final destination state, with possible VAT return reporting for registered importers.
- Each GCC member can still set its own standard VAT rate, as long as it is at least 5% unless a zero rate or exemption applies.
Source: pwc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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