Executive summary
Indirect tax transformation continues to gather pace across the GCC, with governments accelerating efforts to modernise tax systems, strengthen regional coordination and simplify cross-border trade.
The GCC Indirect Tax News Roundup – Quarter Two 2026 brings together the latest legislative, VAT, customs and eInvoicing developments shaping the region. This quarter is marked by two significant milestones: the first amendments to the GCC Unified VAT Agreement and the signing of the landmark GCC–UK Free Trade Agreement, both signalling a more connected and digitally enabled tax environment.
Alongside these regional developments, tax authorities continue to enhance compliance frameworks, publish practical guidance and advance digital transformation programmes across the UAE, Saudi Arabia, Bahrain, Oman and Qatar.
As the pace of change continues, businesses have an opportunity to strengthen governance, optimise tax processes and prepare for the next phase of indirect tax transformation.
Highlights
GCC
- Saudi Arabia approved the first amendments to the GCC Unified VAT Agreement, introducing changes to intra-GCC supplies, import VAT, VAT rates and information exchange between tax authorities.
- The GCC and the United Kingdom signed a landmark Free Trade Agreement, creating new opportunities through reduced tariffs, simplified customs procedures and enhanced market access.
United Arab Emirates (UAE)
- Amendments to the Executive Regulations of the Tax Procedures Law introduced changes to refund procedures, voluntary disclosures, record retention and taxpayer confidentiality.
- The Federal Tax Authority issued new VAT guidance for the education sector and updated its guide on VAT refunds for UAE nationals building new residences.
- The UAE continued advancing its eInvoicing programme through updated implementation timelines, revised technical guidance and enhanced business readiness initiatives.
- New customs developments included the entry into force of the UAE's CEPAs with Azerbaijan and South Korea, customs duty relief measures introduced by Dubai Customs and temporary export restrictions on selected industrial scrap materials.
The Kingdom of Saudi Arabia (KSA)
- ZATCA extended the tax amnesty initiative until 31 December 2026, providing businesses with additional time to regularise historical tax positions for tax became due before 30 June 2026.
- Customs reforms continued through simplified transit procedures, proposed regulations for Special Economic Zones, updated customs procedure controls and revised bonded zone rules.
Bahrain
- Bahrain expanded its VAT Healthcare Guide, providing greater clarity on the VAT treatment of medicines, medical equipment and healthcare-related supplies.
- New customs rules strengthened import procedures, introduced a customs duty threshold for low-value shipments and reinforced Importer of Record obligations.
Oman
- Oman progressed its Fawtara eInvoicing programme through the publication of Peppol PINT specifications, rollout guidance and additional technical clarifications to support business readiness.
Qatar
- Qatar approved its draft eInvoicing law and executive regulations, marking an important milestone in the development of its future digital tax framework.
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GCC Indirect Tax News Roundup - Quarter Two 2026
Contact us
Chadi Abou Chakra
Partner, ME Indirect Tax Network lead, Tax & Legal Services, PwC Middle East
Carlos Garcia
Partner, ME Customs and International Trade lead, Tax & Legal Services, PwC Middle East
Guido Lubbers
ITX Partner | TLS Middle East Consumer Markets leader, PwC Middle East
Tel: +966 54 110 0432
Omara Islam
Partner, Connected Tax Compliance & Indirect Tax, Tax & Legal Services, PwC Middle East
Hafez Yamin
Partner, Indirect Tax and Tax Technology Lead, Tax and Legal Services, PwC Middle East
Gaurav Kapoor
Partner - Tax Reporting & Strategy Leader for Oman, PwC Middle East
Tel: +968 93891546
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