Since 1 January 2018, Value Added Tax (VAT) is applicable to the supply of all goods and services in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), unless an exemption applies.

This document summarizes the current situation in the Gulf Cooperation Council (GCC) as it applies to the major positions in these countries and a high level take on the issues to be aware of in the financial sector. Key topics discussed include:

• Context – GCC Framework Agreement
• What services will be exempt?
• How is Islamic Finance treated?
• Approaches to VAT recovery
• Grouping and cost sharing