VAT Rates Across the GCC: UAE, Saudi, Bahrain and Oman Compared
Not every GCC country charges the same VAT rate, even though they all signed the same Unified VAT Agreement. Here's how the rates compare and why Saudi Arabia stands out.
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The rates, side by side
| Country | VAT rate | Introduced |
|---|---|---|
| UAE | 5% | 2018 |
| Saudi Arabia | 15% | 2018 (raised from 5% in 2020) |
| Bahrain | 10% | 2019 (raised from 5% in 2022) |
| Oman | 5% | 2021 |
| Qatar / Kuwait | Not yet implemented | — |
Why Saudi Arabia is the outlier
Saudi Arabia tripled its VAT rate from 5% to 15% in 2020 as part of fiscal measures responding to lower oil revenues and pandemic-era budget pressure — making it by far the highest VAT rate in the GCC, well above the 5% most of the region started with under the original Unified VAT Agreement.
Qatar and Kuwait haven't implemented VAT yet
Although both signed the GCC Unified VAT Agreement, Qatar and Kuwait have delayed implementation and, as of now, do not charge VAT — worth double-checking current status if you're doing business there, since this has been under periodic review.
Frequently asked questions
Which GCC country has the highest VAT?
Is GCC VAT the same as EU VAT?
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