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Kuwait may ditch VAT launch

  • Jan 10, 2018 | Richard Asquith

Kuwait may ditch VAT launch

Kuwait may consider introducing an alternative to the proposed 5% VAT regime.

Kuwait is one of the six Arab Gulf countries which committed in 2017 to launching a harmonised VAT regime within two years. On 1 January 2018, Saudi Arabia and the UAE implemented VAT. A third country, Bahrain, has committed to launching later in 2018. Qatar and Oman may launch in 2019.

Kuwait was already struggling to get its more independent-minded parliament to back the indirect tax launch, and had recently indicated a 2019 launch at best.  So the government is now reported to be exploring an alternative, progressive tax.  This could be a plain Sales Tax or Corporate Income Tax with a minimum profit cap to take small and medium sized business out of the tax net.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.