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SKP GCC VAT Alert
VAT: The roll out rolls on in UAE so prepare for the time
The Ministry of Finance (MoF) has a dedicated section on its website which explains Value Added Tax (VAT) and provides practical guidance on how it applies. The MoF has also begun to roll out a VAT and Excise Awareness Campaign. Phase 1 of that campaign, involving an extensive series of workshops, ended in mid-May.

In all, 14 workshops, with capacity for up to 500-700 attendees at each, were held in seven locations around the Emirates. The workshops ranged from ‘multiplier’ events for influencer organisations like Chambers of Commerce and PR businesses, to general sessions on VAT and Excise Duty, and more specifically targeted briefings for both, top 500 companies and SMEs.

Source: The National Business 12 June 2017


Saudi Arabia introduces 'sin tax' from Sunday
Saudi Arabia has implemented 100 percent excise tax on tobacco products and energy drinks, and 50 percent tax on soft drinks from Sunday, 11 June 2017.

Last month, the Kingdom announced imposing excise tax 
from 11 June after the Gulf Cooperation Council (GCC) unified VAT and excise tax treaties were ratified in May 2017.
The UAE is set to introduce the excise tax from the fourth quarter.

Source: Arabian Business 11 June 2017
SKP's comments
Fulfilling the commitment of implementing a tax on tobacco, sodas and certain other commodities with effect from 11 June 2017, the Kingdom of Saudi Arabia has gone ahead and introduced the same. The UAE is also expected to issue a law for excise duty on tobacco and fizzy and energy drinks this year.

The GCC member states seem to be swiftly moving to implement VAT. Given this scenario, the businesses need to decipher the new law, as and when it is released and plan ahead of time to this transitional business change.


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