SWI 2019, 34
In 2017, the member states of the Gulf Cooperation Council (GCC), Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, agreed to introduce Value Added Tax (VAT) at the rate of 5 %. The legal basis is the Common VAT Agreement of the States of the GCC (VAT Framework Agreement). Accordingly, the GCC member states shall issue local laws to implement the VAT Framework Agreement. The GCC’s Ministerial Committee has the sole power to interpret the VAT Framework Agreement, which enters into force according to the local laws of each member state and may vary between the member states.