Informed financial sources revealed that there is an agreement between the cooperation countries to give an additional deadline in the beginning of 2019 to apply the value added tax in the GCC countries for member states that have not completed their internal procedures, noting that two of the States members of the Council have completed their procedures in full and are ready to apply are the UAE and Saudi Arabia.
The economic statement said that the new tax will start on January 1 in the UAE and Saudi Arabia as part of the commitment agreed between GCC countries under the unified GCC value added tax agreement, which came into effect last April after the UAE deposited two certificates of ratification the two selective tax agreements and the unified value-added tax convention of the GCC Secretariat.
She pointed out that the two unified conventions for selective taxation and value-added tax provided that they are valid from the deposit of the second country’s ratification document with the GCC Secretariat. This was done by the UAE last May, which is the second country to deposit the instruments of ratification after Saudi Arabia took the same step Earlier.
According to a report obtained by the «economic statement» a copy of it, the countries of cooperation will impose the value added tax uniformly by a basic rate of 5% as the Committee authorized the financial and economic cooperation to complete all the requirements for the adoption of the value-added tax for the GCC countries and sign them with a timetable for the readiness of countries Members of the value added tax of the GCC countries to apply in member states beginning 2018.
The report pointed out that the ratification of the Gulf Convention for Value Added Tax is in accordance with the internal procedures followed in each country for the signatories of the Convention, where each country of the Council of the local law (system) local value added tax agreement to reflect in the law (the system) In the GCC Value Added Tax Agreement.
Local media reported that Oman would delay a 5% VAT surcharge for 2019 instead of next year, as planned, which could harm the Sultanate’s efforts to boost its financial position.