VAT in the GCC by 2018, says UAE official

This content was originally posted in 7DAYS UAE website at: VAT in the GCC by 2018, says UAE official A senior UAE official has said that value added tax (VAT) in the GCC region could be introduced by end of 2018 as the Gulf Sates have agreed on key issues for its implementation. Younis Haji Al Khouri, undersecretary at the UAE ministry of finance, said that the agreement was reached at a meeting of representatives from Gulf ministries a few days ago, Al Khouri told reporters on the sideline of a media event in Abu Dhabi on Monday. Al Khouri said that they are aiming to introduce the tax in three years’ time and it would take 18 to 24 months to implement once a final agreement has been reached. The decrease of oil prices, since last year, has cut government incomes, making it more urgent for them to find new revenues. The agreement will bring the six nations closer to introducing direct taxation for the first time. The GCC countries have agreed to exempt healthcare, education, social services sectors from the tax along with 94 food items. “We agreed on key issues to apply zero tax on healthcare, education, social services sectors and exempt 94 food items,” said Al Khouri. However, he said agreement in several areas, including financial services, was still to be reached. Introducing VAT would be a major economic reform in the Gulf Cooperation Council states, which have minimal tax systems and no tax on income, apart from some government fees such as road taxes. VAT cannot be implemented unilaterally but has to be part of a Gulf-wide decision, Al Khouri told Reuters in August, adding that if all GCC states agree on a deadline, then some could implement the taxation ahead of the others. Read the original story at: VAT in the GCC by 2018, says UAE official