Recent VAT Amendments in GCC

Remittance tax back in play as Kuwaiti MPs submit bill

Kuwait is planning to charges 2.5% on Money remittance and for that Osama Al-Shaheen, Hamad Al-Matar, Abdulaziz Al-Saqaabi, Shuaib Al- Al- Muwaizri and Khalid Al-Otaibi bring a new proposal on taxing remittances.

According to Kuwaiti MP roughly KD 21 billion has been transferred from Kuwait to other country and on that every year approx. 100 million revenue could have been collected.

Over 90 food items will be subjected to VAT at zero percent

In OMAN Vat Implementation has already been announced and with effect from 16 April 2021.

Tax Authority has Added Tax at the rate of Zero % on certain food items which include following products:

• Meat, fish and poultry
• Milk and dairy products
• Fresh eggs, vegetables and fruits
• Coffee and tea
• Cardamom creels
• Olive oil
• Sugar
• Bread
• Salt
• Bottled drinking water
• Nutritional preparations for children

Oman Tax Authority: New executive decisions on VAT implementation

In OMAN Vat Implementation has already been announced and with effect from 16 April 2021.

Limit for the same has been kept at OMR 38,500 for compulsory registration and OMR 19250 for Voluntary registration.

First to register will be businesses with an annual turnover of over OMR 1 million. They must register between February 1 and March 15, 2021.

For businesses with a turnover of over OMR 500,000, the deadline for registration is July 1, 2021.

The blog post is written by Mr Milap ,Tax Advisor at Flyingcolour Accounting & Tax Services. If you have any query related to latest ammendments in VAT audit in UAE then feel free to call +971 4 4542366 today for a quality consultation or please send inquiry to info[at]flyingcolour[dot]com.

Please Note: This article was published on 02nd March, 2021. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.