VAT to be implemented in Saudi Arabia and the United Arab Emirates
Value Added Tax (VAT) is expected to be introduced in Saudi Arabia and the United Arab Emirates as of 01 January 2018.
The VAT Law is based on the common principles agreed by all Gulf Cooperation Council countries as outlined in the GCC VAT framework agreement. Each member state of the GCC is expected to establish their own separate national legislation concerning the VAT and as such the detailed compliance requirements and set of rules will be outlined in each respective legislation.
The VAT will apply at the standard rate of 5% for all IP matters in Saudi Arabia and the United Arab Emirates filed from 01 January 2018 as well as all pending stages for the previous jobs that will be completed thereafter. The new VAT rate will be reflected in our invoices issued on or after this date.
We therefore advise our associates and clients to provide their instructions for all IP matters (new applications, renewals, annuities) before 30 December 2017 to avoid additional payment of the new VAT rate.