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FINANCIAL NEWS
GCC countries confirm to introduce 5 percent VAT
23 Feb 2016
(MENAFN) GCC nations agreed that they will present Value Added Tax (VAT) at a rate of 5 percent in 2018, while the decision is yet to receive final approval before being applied.
Accordingly, GCC countries have reached a choice on the 5 percent rate after discussions on a rate between 3 and 5 percent, and they will finalize their implementation policy.
However, they agreed that the tax won’t be applied on specific industries like education, and health care, while staple food items would be exempted from VAT.
The UAE is predicted to produce almost USD 2.72bn to USD 3.26bn as a result of introducing VAT in the first year of implementation alone.
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