VAT and transportation in the GCC has been saved
VAT and transportation in the GCC
Impacts of VAT on transportation services in the Gulf
The transportation services in the Gulf Cooperation Council (GCC) is undergoing various improvements with the aim to develop the transportation sector not only for fast transit of people and goods within a specific GCC country, but also to increase the cross border trade. The implementation of Value Added Tax (VAT) in the GCC the transportation industry must be aware of its potential impacts. So how will VAT implementation in the GCC affect the transportation sector?
The release of the Treaty is a landmark event for the region and marks the true beginning of VAT implementation across the GCC. The Treaty establishes the common principles of the VAT system which is to apply in each GCC State and provides a structure on which domestic VAT legislation will be developed. The publication of the Treaty means we have clarity over the principles which every State will be required to enact and can confirm our understanding of how VAT in the GCC will impact the transportation sector.
The summary document aims to give a greater understanding of the introduction of VAT in GCC and how VAT will impact the transportation sector and what are the associated challenges as per the below:
- Basic concepts of the GCC VAT Treaty
- What will be the VAT liability for supplies in the transportation sector in the GCC?
- What are the business issues that will arise upon the introduction of VAT in the GCC?