GCC Indirect Tax News Roundup - Quarter Three 2025

Newsletter
3 minute read
10/09/25

Executive Summary

This quarter’s roundup captures meaningful shifts across the GCC indirect tax landscape. The UAE has formalised its national e-invoicing framework and timeline, updated input tax apportionment guidance, and introduced a sugar-content-based excise model for sweetened drinks. Customs changes include a move to 12-digit tariff codes and the UAE–New Zealand CEPA entering into force. KSA advances Phase II of e-invoicing via Wave 24. Bahrain has refreshed its VAT registration guidance, and Oman has outlined first-phase criteria and a readiness survey for e-invoicing. A featured insight underscores why trade compliance is now a board-level capability.

Highlights

United Arab Emirates

E-invoicing framework & rollout: VAT Executive Regulations updated; national system established with ASP requirements, data-storage in the UAE, incident-notification rules, and phased implementation. Pilot/voluntary adoption from 1 Jul 2026; mandatory go-lives: 1 Jan 2027 (revenue ≥ AED 50m), 1 Jul 2027 (revenue < AED 50m), 1 Oct 2027 (government). B2C remains out of scope pending a future decision.
VAT apportionment: New Specified Recovery Percentage (SRP) option; clearer EmaraTax timelines and a variance-notification trigger to tighten governance.
Excise (sweetened drinks): From 1 Jan 2026, tax shifts to a tiered volumetric model linked to sugar content, with defined exclusions and a default “high sugar” band where no accredited lab report is provided.
Customs & trade: Dubai and Abu Dhabi move to a 12-digit Integrated Customs Tariff with a six-month transition (parallel use of 8- and 12-digit codes); the UAE–New Zealand CEPA is now in force, with staged tariff reductions and clear Rules of Origin requirements.

Saudi Arabia (KSA)

E-invoicing Phase II (Wave 24): Taxpayers with annual taxable revenues exceeding SAR 375,000 in 2022/2023/2024 must integrate with FATOORA by 30 Jun 2026.

Bahrain

VAT: The NBR VAT Registration Guide (v1.9) provides clearer, step-by-step processes for NBR registration, VAT registration, and VAT-group registration.

Oman

E-invoicing: First-phase selection criteria announced (size/volume, sector diversity, technical readiness, compliance, willingness to support pilot, geographic spread) alongside a national Business Readiness Survey.

Regional insight

Trade compliance for leadership: Boards are urged to treat trade compliance as a strategic, data-driven capability given geopolitics, sustainability rules, and real-time enforcement trends.

The takeaway

Staying ahead of change is no longer optional. Taxpayers are now, more than ever, expected to keep pace with the rapid evolution of indirect tax regulations across the region and ensure they remain fully compliant and future-ready. Proactive monitoring and timely action are critical to mitigating risks and seizing opportunities in this dynamic environment. If you would like to explore how these developments impact your business or discuss the key insights highlighted in this publication, please reach out to us for a deeper conversation.

Download the full GCC Indirect Tax News Roundup – Q3 2025 to explore detailed jurisdiction updates, key regulatory milestones, and PwC insights that help your business stay compliant, future-ready, and ahead of ongoing tax and trade transformation across the region.