close
BanksNews

Kuwait and other GCC countries confirm introduction of VAT

VAT(1)

Kuwait and other GCC countries have confirmed the introduction of the unified Value Added Tax (VAT) framework and selective tax policy with adoption of the domestic legislation, reports Al- Shahed daily.

Saudi Arabia has since published the text of the GCC VAT Framework in its Official Gazette, which will be enforced 15 days after the date of publishing.

Sources added the executive decrees will define activation of the law and specify the type of commodities that will be a focus for taxation. They noted the Gulf countries will enforce two types of tax under the executive legislation, citing VAT and selective tax — the latter will be imposed on harmful commodities such as tobacco and fizzy drinks.

The Gulf countries have agreed that 200 percent tax should be imposed on the importers of tobacco at the borders and calculation will be done according to the cost of import.

Sources explained the initial agreement was to introduce selective tax on fizzy drinks and at least 5 percent VAT on other commodities and services by 2018.

Source http://www.timeskuwait.com/Times_Kuwait-and-other-GCC-countries-confirm-introduction-of-VAT

kuwaitwebinfo

The author kuwaitwebinfo

Leave a Reply