- On 28 July the KSA has published its VAT law in the official gazette (UM AL-QURA) confirming that VAT will will enter into force from the start of the fiscal year following the date of its publication in the official Gazette, i.e. 1 January 2018. Please note that the VAT law requires taxable persons to submit their advance VAT registration by 24 August 2017 to comply with the VAT law.
- On 28 July the Federal Tax Authority (“FTA”) has announced on its website that the UAE will implement VAT on 1 January 2018, simultaneously with KSA and potentially other GCC member states.
The VAT law is based on the VAT principles agreed in the Unified GCC Agreement for Value Added Tax (VAT) published in the Official Gazette on 21 April 2017. The main VAT principles with regards to the application of VAT on certain sectors have been decided in the law, however specific details with regards to the application are left to the implementing regulations which are expected to be issued shortly.