Value-Added Tax in GCC: Fees, Rules, and Business Tips (2025)

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The Gulf Cooperation Council (GCC) introduced Value-Added Tax in GCC to create a balanced and transparent tax system that supports economic growth. Since its implementation, businesses across the UAE, Saudi Arabia, Oman, Bahrain, and Qatar have adapted to these tax rules to stay compliant and efficient.

Key VAT Rules in 2025​

In 2025, GCC countries continue to apply VAT at a standard rate of 5% on most goods and services. However, some sectors such as education, healthcare, and essential food items may still have exemptions or zero-rated categories. Businesses must register for VAT if their annual turnover exceeds the threshold set by the respective country’s tax authority.

VAT Fees and Registration​

The registration process involves submitting business details, trade licenses, and financial records online through the official tax portals. Once registered, businesses receive a VAT number and are required to issue tax invoices, maintain proper records, and file VAT returns periodically. Failure to comply can result in fines or penalties.

Business Tips for VAT Compliance​

• Keep accurate and updated financial records.
• Understand which products or services fall under taxable, exempt, or zero-rated categories.
• Use digital accounting systems to simplify VAT filing.
• Regularly review VAT updates and policies from local authorities.
• Consult professional business setup experts for smooth compliance.

Conclusion​

Following VAT laws helps businesses maintain credibility and avoid legal trouble. With expert guidance from DBS Business Setup Group, entrepreneurs can handle VAT registration, reporting, and compliance easily. Staying informed about the changing tax environment ensures business stability and long-term growth in the GCC region.