Saudi Arabia Publishes GCC VAT Agreement

On 20 April 2017, Saudi Arabia published the Gulf Cooperation Council (GCC) Unified Agreement for Value Added Tax (VAT) as approved by the Cabinet in January 2017. The agreement sets out the framework for the introduction of VAT as agreed to by all GCC States, while providing some flexibility for local implementation. Key points of the agreement include:

• The standard VAT rate for the supply of goods and services is 5%;
• The standard VAT registration threshold is annual turnover of USD 100,000…