At Wallis we have been advised by the British Chamber of Commerce and the CEO of the British Centre’s for Business in Saudi Arabia that there is a key change to VAT that will be introduced into the United Arab Emirates and the GCC countries on 1st January 2018.
We know for sure that UAE and Saudi are imposing this as we have had a rush of air freight and last minute sea freight bookings to make arrival before 31st Dec 2017.
All Golf Cooperation Council (GCC) countries have agreed that it will be mandatory for companies with revenue of over approximately US$100,000 to be VAT registered with the Federal Tax Authority of the UAE. It will be voluntary for companies with a turnover of more than US$50,000, but with thresholds so low, the majority of companies in the UAE will pay VAT.
With the go-live date of VAT in the region less than a month away those exporting to GCC countries using the lNCOterm Delivered Duty Paid (DDP) should be aware of the 5% charge being introduced.
The Charge of VAT on imports will work in a similar way as it does in the EU at present with the VAT being paid before goods can be released. Where appropriate the importer will be able to reclaim the VAT paid.
The GCC countries are:
- Saudi Arabia
There is still time to export and ship something to the Middle East or worldwide before the end of the year, just call us at Wallis Shipping on 01206 751133 to request a quote or to arrange a booking.