GCC Indirect Tax News Roundup - Quarter Two 2025

Newsletter
5 minute read
July 23, 2025

Executive Summary

The GCC Indirect Tax News Roundup – Quarter Two 2025 offers a detailed overview of the latest tax policy, regulatory, and administrative changes across the Gulf Cooperation Council (GCC). With a continued focus on transparency, digital transformation, and alignment with global tax standards, this edition outlines critical developments in VAT, Excise Tax, Customs measures, and eInvoicing across key GCC markets. It also highlights cross-border initiatives such as CEPA agreements and VAT refund schemes that promote investment and streamline trade. This report is an essential resource for businesses seeking to remain compliant and competitive in a rapidly evolving tax landscape.

Key Takeaways

Saudi Arabia

Tax Penalty Amnesty Extended through 31 December 2025, covering late filings and VAT corrections.
RETT Regulations Updated, offering new exclusions for share transfers and expanded definitions of taxable assets.
Major VAT Amendments impact VAT grouping, e-marketplaces, special zones, and tourist refunds, with phased enforcement through 2026.
White Land Tax Law Revised to include vacant real estate, targeting more efficient land use.
eInvoicing Integration Continues, with Wave 23 applying to taxpayers exceeding SAR 750,000 in annual revenue by March 2026.

United Arab Emirates

New VAT Clarifications address SWIFT-based interbank charges, barter transactions, and imported services under the reverse charge mechanism.
Expanded Reverse Charge Scope now includes precious metals and gemstones when sold for resale or processing.
Excise Tax Guidelines formalize treatment of natural shortages and documentation requirements in designated zones.
UAE-Jordan CEPA Activated, eliminating tariffs on over 98% of goods and facilitating broader service sector access.
PINT AE Specifications Released for eInvoicing, targeting full rollout beginning in Q2 2026.

Oman

Refund Guidance Issued for VAT paid by armed and security forces on specified local purchases.
Non-Resident VAT Refunds Confirmed under existing legal provisions.
Digital Tax Stamps Implemented for certain excisable goods, with full enforcement by August 2025.
Excise Price Policy Shifted, removing reliance on OTA-issued standard price lists.
eInvoicing Rollout Planned across four stages from Q3 2025 to full implementation by 2028.

Bahrain

Updated VAT Guidance distinguishes between exempt core functions and taxable income-generating activities of Owners’ Associations.

GCC-Wide and Customs

VAT Refund Mechanisms Available in all implementing states for eligible non-resident businesses.
Anti-Dumping Duties Introduced on Chinese aluminum alloy products to protect regional manufacturers, with duties up to 20% for non-cooperating exporters.

Highlights

The report includes direct links to public clarifications, legal texts, and implementation guides for ease of reference.
Taxpayers are encouraged to reassess compliance frameworks, pricing mechanisms, invoicing systems, and cross-border supply chains in light of the new regulations.
The roundup features expert insights from PwC-led events across the Middle East, including sector-specific webinars and the Annual Tax Conference 2025.
A section dedicated to eInvoicing outlines national roadmaps, expected formats (e.g., Peppol PINT AE), and recommended preparatory steps for businesses.

Download the full GCC Indirect Tax News Roundup – Q2 2025 to explore jurisdiction-specific details, deadlines, and expert commentary that can help your business navigate regulatory change with confidence.