The correct answer is UAE and Saudi Arabia.On January 1, 2018, the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) became the first two countries in the Gulf Cooperation Council (GCC) to officially introduce a 5% Value... Read More
The correct answer is UAE and Saudi Arabia.On January 1, 2018, the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) became the first two countries in the Gulf Cooperation Council (GCC) to officially introduce a 5% Value Added Tax (VAT).
The implementation was part of a unified framework agreement signed by all six GCC member states (UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, and Oman) in 2016.
Following the 2018 rollout by the UAE and Saudi Arabia, other Gulf nations slowly followed suit:
Oman and Qatar: Oman introduced it much later (2021), and Qatar has not yet implemented a broad-based VAT system.
UAE and Saudi Arabia: The correct answer; both launched the tax simultaneously on New Year's Day of 2018.
Kuwait and Iraq: Kuwait has continually delayed its rollout, and Iraq is not a member of the GCC council framework.
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