Executive summary
The GCC Indirect Tax News Roundup for Quarter One 2026 highlights the region’s continued momentum towards digital transformation, enhanced compliance, and more agile regulatory frameworks.
Across the GCC, tax authorities are taking decisive steps to modernise indirect tax systems, with a strong focus on real-time reporting, clearer guidance, and practical measures to support businesses navigating an evolving landscape. This quarter reflects a balance between regulatory advancement and targeted facilitation, helping organisations adapt while maintaining operational continuity.
In the UAE, developments span e-invoicing implementation, refined VAT guidance, and a series of customs and economic initiatives designed to ease trade flows and support business resilience. Saudi Arabia continues to strengthen its compliance environment through extended amnesty measures, new VAT rules for digital platforms, and a fundamental shift in excise taxation. Bahrain has enhanced interpretive clarity through updated VAT guidance, while Oman is progressing its e-invoicing programme alongside introducing practical customs facilitation measures.
Together, these developments reinforce the importance for businesses to stay ahead of change by strengthening governance, enhancing data capabilities, and adopting a proactive, future-ready approach to indirect tax.
Highlights
United Arab Emirates (UAE)
- Introduction of a AED 1 billion economic incentive package in Dubai, providing temporary relief through deferred fees, extended customs timelines, and streamlined administrative processes to support business continuity.
- Issuance of FTA Decision No. 2 of 2026, establishing a more structured and transparent framework for taxpayer clarifications, directives, and advance pricing agreements.
- Publication of a VAT Guide on the Profit Margin Scheme (VATGPM1), offering greater clarity on eligibility, calculation, and invoicing requirements, with broader relevance across industries.
- Release of the UAE e-invoicing Guidelines (Version 1.0), setting out a comprehensive framework for implementation, including a Peppol-based model and mandatory structured electronic invoicing.
- Further progress on e-invoicing through the publication of technical documentation, including Accredited Service Provider criteria and detailed data requirements.
- Extension of flexibility to continue using 8-digit HS codes, enabling businesses to prepare for the transition to the 12-digit Integrated Customs Tariff.
- Introduction of temporary customs facilitation measures, including bonded transport routes and a UAE–Oman Green Corridor, supporting the smooth flow of goods during operational disruptions.
- Entry into force of the UAE–Vietnam CEPA, unlocking significant tariff reductions and strengthening bilateral trade and investment flows.
- Extension of transit timelines for goods in transit from 30 to 90 days, supporting supply chain continuity and flexibility.
The Kingdom of Saudi Arabia (KSA)
Extension of the tax amnesty initiative until 30 June 2026, providing businesses with an extended opportunity to regularise tax positions and reduce exposure to penalties.
Issuance of VAT guidelines on deemed supplier rules for online marketplaces, clarifying the evolving role of digital platforms in VAT collection and compliance.
Amendments to excise tax regulations introducing a tiered, sugar-based and volumetric model for sweetened beverages, signalling a more targeted and data-driven approach to taxation.
Introduction of a Voluntary Disclosure programme for customs violations, encouraging proactive compliance through the potential waiver of penalties.
Bahrain
Publication of updated VAT guides, enhancing clarity across key areas including manpower services, lease incentives, outsourcing arrangements, and VAT treatment of import deposits.
Oman
- Continued progress on the Fawtara e-invoicing programme, including the launch of the service provider registration portal and the next phase of implementation planning.
- Signature and expected entry into force of the Oman–India CEPA, strengthening trade relations through tariff reductions and expanded market access.
- Introduction of customs facilitation measures to support trade flows, including simplified guarantees, priority clearance processes, and revised storage timelines.
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GCC Indirect Tax News Roundup - Quarter One 2026
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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 LLM MBA
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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