The text of the framework agreement was published only in Arabic. However, for an easier reference, KPMG is happy to present an English version of the text of the framework contract, which was directly translated from the original Arabic document. The VAT agreements concluded under the GCC VAT agreement and excise duties are the basis of each country`s individual VAT and excise scheme. Each Member State adopts its own national VAT legislation, using agreed-upon principles as guidelines. The GCC VAT Convention can be defined as a single VAT agreement by the Gulf Cooperation Council (GCC) for Arab states. VaE and Saudi Arabia will be the first countries to introduce VAT to the GCC from January 2018, while other Gulf countries will have until the end of next year to implement the tax system. However, the implementation of the excise in the United Arab Emirates in the fourth quarter of 2017 is envisaged. That is why companies in the United Arab Emirates, Saudi Arabia and other Gulf countries are preparing to introduce the VAT system. The Single Agreement on VAT (VAT) of the Cooperation Council for Gulf Arab StatesThe Cooperation Council`s single VAT agreement for gulf Arab States was published by UM AL-QURA, number 4667, H1438/7/24.
This agreement aims to define the uniform legal framework for the introduction of VAT in GCC countries, which is imposed on deliveries of goods and services. The kingdom agreed by royal decree (point m/51 of 5.05.1438). The single VAT agreement was published in the Official Journal of one of the Member States, Saudi Arabia, as an important step towards introducing VAT into the Gulf Cooperation Council. The single agreement is the framework for the exploitation of VAT throughout the GCC. Each GCC member state will apply the framework through legislation and other instruments. This step is another reason for companies operating in the Middle East to develop or continue their plans to introduce VAT. Therefore, we can assume that there will be a penalty regime applicable in the event of an error, and it will therefore be essential to have the appropriate systems and procedures in place to limit exposure. Each GCC member state (including Bahrain and Qatar) must now adopt its own national legislation to implement VAT on the ground by 2018. . In April 2017, the Kingdom of Saudi Arabia published the Single Agreement on VAT in the Gulf Cooperation Council (GCC), which sets out the principles for implementing the new tax system in each of the GCC member states. Businesses are now taking into account the impact of VAT on their operations and are starting to plan the right techniques for VAT, system, finance, tax governance and compliance, training and other areas to meet VAT requirements. The single AGREEMENT on VAT for the GCC region contains the following main features: this unique VAT agreement of the Cooperation Council for Gulf Arab States must be transposed into national law in all GCC member states, since the KSA VAT Act and draft implementing regulations have been drawn up.
. . . Contact JCA UAE Audit for GCC VAT Agreement in Dubai, UAE, for more information, please inform us today. To access the Cooperation Council`s unique VAT agreement for Gulf Arab States, please follow this link. Given the date on which VAT will come into force and is expected in some Member States as of 1 January 2018, companies operating throughout the GCC will have to activate their VAT implementation plans if they are not already essentially in progress. There is a relatively short period of time to consider the impact of the introduction of VAT and make the necessary changes.