Kuwait readies VAT legislation
- Aug 6, 2018 | Richard Asquith
The Kuwaiti government is reported to be reading draft VAT implementation legislation for the national assembly to review in October 2018. This could lead to implementation in 2019.
The opposition in parliament is likely to be high. Earlier reports in the summer had suggested a 2021 or even 2022 launch date.
In 2017, Kuwait and the five other members of the Gulf Cooperation Council states (Saudi Arabia, Bahrain, Kuwait, Qatar, Oman and the United Arab Emirates) signed an agreement to introduce VAT at a national level at 5%, and enter into VAT and Customs unions – similar to the European Union model. To date, only Saudi Arabia and UAE have launched VAT.