Saudi Arabia, UAE readying to introduce new VAT system by 2018
Saudi Arabia and the United Arab Emirates will start imposing 5% VAT starting from January 1, 2018 while the rest of the GCC countries are yet to determine a firm date despite their commitment with the implementation.
Exporters based in Saudi Arabia and the United Arab Emirates will be required to pay value-added tax (VAT) on goods transported between the two countries from next year, with the tax collected in the country where the products are exported to, as media sources suggest.
According to the VAT laws introduced in both markets, only exports to the non-implementing GCC states will be eligible for the zero rating applied to exports, which will allow businesses to reclaim VAT paid on input costs. Other exports delivered within the GCC’s VAT-implementing states will be subject to VAT at its standard rate.
Players in the petrochemical industry are evaluating the planned VAT system amid expectations of a possible boost in demand ahead of the year-end as they believe that demand will falter following the implementation of the new tariff due to the higher prices.
Players in Saudi Arabia are confused about the new VAT system and they are waiting to see the impact of the new system on the market. Prices are expected to increase on the back of 5% VAT, which confuses traders about their cost calculations and margins.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Tightness brings further price hikes in African PP, PE markets
- European PP hits new highs after 3-digit hikes for January
- Turkey’s PP, PE markets open 2021 with supply-driven hikes
- Vietnam’s local homo-PP market retreats for 3rd week on subdued demand
- China’s PE demand wavers amid controls on environmental pollution and electricity use
- January trend takes shape in Egypt’s PP, PE markets
- Stats: Turkey’s 2020 polymer imports set to beat the 2017 record
- China PP, PE markets close 2020 on a soft note; SE Asia feels pressure
- Stats: China’s total PE imports down for 2nd month in November
- Egypt PET markets poised to end the year on a strong note