Kuwait delays VAT until 2019, reports say
Decision to delay could give the National Assembly enough time to vote to enforce the VAT in all GCC member countries, CNBC Arabia TV says
Kuwait has reportedly decided to delay the implementations of value-added-tax (VAT) until 2019, Kuwait Times said, citing a report from CNBC Arabia TV.
The report from CNBC Arabia TV also added the decision to defer the VAT could give the National Assembly enough time to vote on the unified Gulf Cooperation Council (GCC) to enforce the tax in all member states.
VAT is a tax imposed on the difference between product’s cost and sale prices. It is an indirect tax imposed on all goods and services except those exempted by an official decision, Kuwait Times reported.
So far, Oman’s Finance Ministry has reportedly postponed VAT until 2019, according to Times of Oman. However, items like tobacco product and energy soft drinks will be taxed starting mid-2018, the local media report said. The delay is expected to provide businesses in Oman time to prepare.
Despite reported delays in VAT implementation by Kuwait and Oman, Saudi Arabia and United Arab Emirates will be putting the tax into practice starting January 1, 2018.