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GCC VAT – GCC-GULF COOPERATION COUNCIL

The Cooperation Council for the Arab States of the Gulf, also known as the Gulf Cooperation Council, is a regional, intergovernmental, political, and economic union comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The council’s main headquarters is located in Riyadh, Saudi Arabia. 
 

VAT-Value added tax

Vat means value added tax.it is an indirect tax charged on taxable goods and service.
 

Elements of VAT

OUTPUT VAT	TAX COLLECTED FROM CUSTOMERS ON SALES	PAYABLE TO GOVT:
INPUT VAT	TAX PAID TO SUPPLIER ON PURCHASE	REFUNDABLE FROM GOVT:

VAT Registration

Vat Registration as per Threshold Limit:

COUNTRY	COMPULSORY	VOLUNTORY
UAE	AED 375000 P. A	AED 187500 P. A
KSA	SAR 375000 P.  A	SAR 187500 P. A
BAHRAIN	BD 37500 P. A	BD   18750 P.A

How to Apply for VAT Registration

COUNTRY	WEBSITE/PORTAL
UAE	www.tax.gov.ae/
KSA	https://zatca.gov.sa/
BAHRAIN	https://www.nbr.gov.bh/

VAT Registration Number

COUNTRY	REGISTRATION NUMBER	FORMAT
UAE	TRN (Tax Registration Number	15 digits
SAUDI AREBIA	TIN (Tax Identification Number)	15 digits
BAHRAIN	TIN OR TRN	15 digits

VAT Rate

COUNTRY	STANDARD RATE
UAE	5%
SAUDI AREBIA	15%
BAHRAIN	10%

Purchase Transaction with VAT

Purchased goods from M/s Emirate Group as per bill#254 AED 5000

Particular		Debit	Credit
BY	Purchase@5%	AED 5000
BY	Input Vat@5%	AED 250
TO	M/s Emirate Group		AED 5250

Sales Transaction with VAT

2.Sold goods to M/s Anaras Traders per bill#101 AED 10000

Particular		Debit	Credit
BY	M/s Anaras Traders	AED 10500
BY	Sales@5%		AED 10000
TO	Output VAT@5%		AED 500