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GCC VAT Framework

How the unified framework works — and where member states differ.

REGIONALMarch 2026 · 6 min read

VAT Rates Comparison

Country Rate Since Status
🇧🇭 Bahrain 10% 2022 Increased from 5%
🇸🇦 Saudi Arabia 15% 2020 Tripled from 5%
🇦🇪 UAE 5% 2018 Unchanged
🇴🇲 Oman 5% 2021 Last GCC to implement
🇶🇦 Qatar — — Not yet implemented
🇰🇼 Kuwait — — Not yet implemented

Cross-Border GCC Supplies

The GCC VAT Framework envisioned a transitional mechanism for goods moving between member states — treating each state as a separate country until the electronic services system connects all states. Currently, goods exported from Bahrain to Saudi Arabia are zero-rated + import VAT in Saudi. Services follow B2B reverse charge rules.

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