SAUDITE ARABIA & WATER: VAT introduced on 01/01/2018

It is the result of an agreement signed in June 2016 between the six GCC countries (Gulf Cooperation Council), and will enter into force in 2018 and 2019 in the other four countries: Bahrain, Kuwait, Oman and Qatar.

VAT has been introduced with the aim of diversifying revenues mainly linked to oil revenues, which have been declining steadily for several years.

The relatively low tax rate (5%) applies to the majority of goods and services.

CAUTION: VAT is payable at the time of customs clearance.