VAT rates across the GCC in 2026
The six states share a framework agreement rather than a single tax. Baker McKenzie reports that the amended framework lets each member state apply VAT at its domestic rate, provided that the rate is not lower than 5%, which is why four states charge VAT today and three different rates are in use. The table below is the same data the calculator runs on.
| Country | Standard rate | Rate in force since | Mandatory registration | Voluntary registration | Returns | Authority |
|---|---|---|---|---|---|---|
| United Arab Emirates | 5% | 1 January 2018 | AED 375,000 | AED 187,500 | Quarterly or monthly, as allocated by the Federal Tax Authority | Federal Tax Authority |
| Saudi Arabia | 15% | 1 July 2020 | SAR 375,000 | SAR 187,500 | Monthly where annual revenues exceed SAR 40 million, otherwise quarterly | Zakat, Tax and Customs Authority |
| Bahrain | 10% | 1 January 2022 | BHD 37,500 | BHD 18,750 | Quarterly at or below BHD 3 million of annual taxable supplies, monthly above it | National Bureau for Revenue |
| Oman | 5% | 16 April 2021 | OMR 38,500 | OMR 19,250 | Quarterly, due 30 days after the end of the quarter | Oman Tax Authority |
| Qatar | No VAT in force | Not in force | None | None | None | General Tax Authority |
| Kuwait | No VAT in force | Not in force | None | None | None | Ministry of Finance |
Each rate was read from the authority or, where the authority does not publish a plain English rate page, from a Big Four summary with a review date: the UAE at 5% since 1 January 2018, Saudi Arabia at a standard rate of 15% following the increase effective 1 July 2020, Bahrain with VAT introduced on 1 January 2019 at 5% and the standard rate amended to 10% with effect from 1 January 2022, and Oman at 5% on most goods and services from 16 April 2021.
Qatar and Kuwait have no VAT to charge
This is the part most rate tables get wrong, because a blank cell reads as a zero rate. It is not. A zero rate is a VAT rate applied by a VAT system. Qatar and Kuwait have no VAT system in operation, so there is nothing to charge, nothing to reclaim and no registration to make.
- Qatar. PwC, last reviewing the country on 26 February 2026, states that Qatar imposes no VAT or sales tax on operations in Qatar, while adding that VAT under a common GCC framework is expected in future. The General Tax Authority lists income tax, capital gains tax, withholding tax, excise tax and the global minimum tax among the taxes it administers, with no VAT among them.
- Kuwait. PwC, last reviewed on 22 July 2026, states that the GCC framework agreement is currently under discussion in the Parliament while the draft Law is under preparation by the government.
Both positions can change, and both states are parties to the framework. This page gives no introduction date for either, because no authority has published one that was verifiable on 5 September 2026. If you are pricing a long contract in Doha or Kuwait City, a VAT clause that says who bears the tax if it is introduced is worth more than a forecast.
Adding VAT and taking VAT out
The arithmetic is the same in every state that charges VAT, only the rate changes.
- Adding VAT to a net amount: VAT equals net multiplied by the rate, and the gross is net plus VAT. At 15%, SAR 1,000 net carries SAR 150 of VAT and comes to SAR 1,150.
- Taking VAT out of a gross amount: the net is the gross divided by 1 plus the rate, and the VAT is the remainder. At 5%, AED 1,050 gross is AED 1,000 net and AED 50 of VAT. At 10%, BHD 550 gross is BHD 500 net and BHD 50 of VAT.
- With a quantity, VAT is worked out once on the line total rather than per unit and multiplied out. Three units at AED 33.33 net come to AED 99.99, and 5% of that is AED 5.00. Rounding the unit VAT to AED 1.67 first and multiplying by three would give AED 5.01, a fils more than the line actually carries.
Amounts are rounded to each currency's ISO 4217 minor unit: two decimal places for the dirham, the Saudi riyal and the Qatari riyal, and three for the Bahraini dinar, the Omani rial and the Kuwaiti dinar. The net figure is rounded first and VAT is taken as the difference, so the net and the VAT always add up to the gross with nothing lost in the rounding.
Registration thresholds and return frequency
The UAE and Saudi Arabia use the same headline numbers in their own currencies. The Federal Tax Authority requires registration once taxable supplies and imports exceed the mandatory registration threshold over the previous 12 months, or are expected to in the next 30 days, at AED 375,000, with voluntary registration from AED 187,500 of supplies, imports or taxable expenses. The ZATCA guideline sets the Saudi mandatory threshold at SAR 375,000 in the previous or the next 12 month period, with voluntary registration from SAR 187,500 of taxable supplies or expenses. Bahrain uses BHD 37,500 of annual taxable revenue for mandatory registration and BHD 18,750 for voluntary, and Oman uses OMR 38,500 and OMR 19,250.
Return frequency differs more than the thresholds do. UAE returns are quarterly or monthly depending on the allocation by the FTA. The ZATCA guideline states that tax returns are submitted on a monthly basis for taxable persons whose annual revenues exceed SAR 40 million, with a quarterly tax period for everyone else, filed by the last day of the month following the tax period. Oman files quarterly, within 30 days from the end of the quarter. Bahrain splits on turnover instead: the National Bureau for Revenue sets quarterly filing for VAT payers with BHD 3 million or less of current or expected annual taxable supplies and monthly filing above that, with annual filing available on request to residents holding under BHD 100,000 of annual supplies who are not part of a VAT group.
Worked example
The same 1,000 units of local currency, entered as an amount that excludes VAT. Press "Load the worked example" in the calculator to see the Saudi line live.
| Country | Working | VAT | Total |
|---|---|---|---|
| United Arab Emirates | 1,000 x 5% | AED 50.00 | AED 1,050.00 |
| Saudi Arabia | 1,000 x 15% | SAR 150.00 | SAR 1,150.00 |
| Bahrain | 1,000 x 10% | BHD 100.000 | BHD 1,100.000 |
| Oman | 1,000 x 5% | OMR 50.000 | OMR 1,050.000 |
| Qatar | No VAT in force | QAR 0.00 | QAR 1,000.00 |
| Kuwait | No VAT in force | KWD 0.000 | KWD 1,000.000 |
Reverse the same figures and the tool works backwards: enter AED 1,050 in the UAE as an amount that already includes VAT and it returns AED 1,000 net with AED 50 of VAT.
When to use the UAE calculator instead
This page is the multi country view: one rate, one amount, one answer about what to charge where. If the question is a UAE question, the UAE VAT calculator goes further on that one country. It checks the AED 375,000 and AED 187,500 registration thresholds against your turnover, sets out what a full tax invoice and a simplified tax invoice must contain, and covers filing, zero rated and exempt supplies, the reverse charge and the penalties. Use this page to pick the rate, and that one to get a UAE invoice right.
Assumptions and exclusions
- The standard rate only. Zero rated supplies, exempt supplies, out of scope supplies and any designated zone or special scheme are not modelled.
- The rate applied is the rate of the country you pick. The tool does not decide place of supply, so cross border sales, exports, imports and the reverse charge need a separate answer.
- Qatar and Kuwait pass the amount through unchanged. That is the absence of a VAT system, not a zero rate, and it is the position as at 5 September 2026.
- Amounts are rounded to the ISO 4217 minor unit of each currency, two decimal places for AED, SAR and QAR and three for BHD, OMR and KWD, with the net rounded first and VAT taken as the difference.
- With a quantity, VAT is calculated on the line total. Different accounting systems round per unit instead, which can shift a line by one minor unit.
- Registration thresholds are the headline figures. The tests behind them differ by state, and non resident businesses often have to register on the first taxable supply regardless of turnover.
- Return frequency is the standard position. Several states let a taxable person apply to change it, and Bahrain also allows annual filing on request below BHD 100,000 of annual supplies, so the frequency on the table is not necessarily the one on your certificate.
- Nothing here is tax advice, and the tool is not a government service.
How Axion Finance applies VAT per country
In Axion, the Finance box holds a tax setup per company and applies VAT per line rather than per invoice, so a group selling in Dubai, Riyadh and Muscat runs three rates without three sets of books. Invoices, credit notes and the numbers behind a return come from the same ledger, in Arabic and English, priced per box with unlimited users. Axion reports the figures; it does not file returns with any authority.
Frequently asked questions
What is the VAT rate in each GCC country in 2026?
Four of the six states charge VAT: the United Arab Emirates at 5% since 1 January 2018, Saudi Arabia at 15% since 1 July 2020, Bahrain at 10% since 1 January 2022 and Oman at 5% since 16 April 2021. Qatar and Kuwait have not introduced VAT, so there is no rate to apply in either as at 5 September 2026. The amended GCC framework lets each member state set its own domestic rate provided the rate is not lower than 5%, which is why the four rates differ.
Do Qatar and Kuwait charge VAT?
No. PwC, last reviewing Qatar on 26 February 2026, states that Qatar imposes no VAT or sales tax on operations in Qatar, and the General Tax Authority lists income tax, capital gains tax, withholding tax, excise tax and the global minimum tax without VAT. For Kuwait, PwC, last reviewed on 22 July 2026, states the GCC framework agreement is under discussion in Parliament while the draft law is being prepared. Both states signed the GCC VAT framework, so the position can change. This page does not predict a date for either.
How do I take VAT out of a price that already includes it?
Divide the gross price by 1 plus the rate. At 5% divide by 1.05, at 10% divide by 1.10 and at 15% divide by 1.15. The VAT is the remainder. A gross price of AED 100 in the UAE is AED 95.24 net and AED 4.76 of VAT. A gross price of SAR 100 in Saudi Arabia is SAR 86.96 net and SAR 13.04 of VAT. The calculator rounds the net figure first and takes VAT as the difference, so net plus VAT always equals the gross you entered.
What are the VAT registration thresholds in the GCC?
In the UAE, registration is mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to in the next 30 days, and voluntary above AED 187,500 of supplies, imports or taxable expenses. Saudi Arabia uses SAR 375,000 mandatory and SAR 187,500 voluntary. Bahrain uses BHD 37,500 of annual taxable revenue for mandatory registration and BHD 18,750 for voluntary. Oman uses OMR 38,500 mandatory and OMR 19,250 voluntary. Qatar and Kuwait have no VAT registration to make.
How often are VAT returns filed in the GCC?
In the UAE, returns are filed quarterly or monthly depending on the tax period the Federal Tax Authority allocates. In Saudi Arabia, monthly returns are mandatory for taxable persons whose annual revenues exceed SAR 40 million, and the tax period is quarterly for everyone else. In Bahrain, the National Bureau for Revenue sets quarterly filing for VAT payers with BHD 3 million or less of current or expected annual taxable supplies and monthly filing above that, with annual filing available on request to residents under BHD 100,000 who are not in a VAT group. In Oman, returns are quarterly and due 30 days after the end of the quarter. Qatar and Kuwait have no VAT return to file.
Which rate applies when I sell to a customer in another GCC state?
That depends on the place of supply rules in the state where you are registered, and on whether that state currently treats the other GCC states as implementing states for VAT purposes. This calculator applies the standard rate of the country you pick and does not decide place of supply, so cross border supplies, zero rated exports and the reverse charge need to be settled with your own tax authority or an adviser before you invoice.
Related tools and guides
- UAE VAT calculator, the single country deep dive with the registration check and the tax invoice rules.
- UAE VAT compliance guide for SMEs in 2026, from registration through returns and record keeping.
- ZATCA phase 2 Fatoorah e-invoicing guide, for what a Saudi invoice has to carry beyond the 15%.
- UAE corporate tax calculator, the other side of the UAE tax picture.
- All Axion tools, the Axion feature list and the Axion FAQ.
Sources
All sources checked on 5 September 2026.
- u.ae, Value added tax: VAT of 5 per cent levied at the point of sale, introduced in the UAE on 1 January 2018, with the AED 375,000 and AED 187,500 thresholds
- Federal Tax Authority, Registration for VAT: the mandatory threshold over the previous 12 months or the next 30 days, and the voluntary threshold including taxable expenses
- PwC Worldwide Tax Summaries, United Arab Emirates, Other taxes (last reviewed 12 March 2026): the general rate of 5% and VAT returns on a quarterly or monthly basis depending on the allocation by the FTA
- ZATCA, Guideline for Regional Headquarters in KSA (PDF): the standard rate of 15%, the SAR 375,000 mandatory and SAR 187,500 voluntary registration thresholds, and monthly returns where annual revenues exceed SAR 40 million, quarterly otherwise
- PwC Worldwide Tax Summaries, Saudi Arabia, Other taxes (last reviewed 29 July 2026): the standard VAT rate was increased to 15% effective 1 July 2020
- National Bureau for Revenue, VAT frequently asked questions: VAT was introduced in the Kingdom of Bahrain on 1 January 2019 at a standard rate of 5%, and with effect from 1 January 2022 the standard rate has been amended to 10%
- National Bureau for Revenue, how to change VAT return filing frequency: under Article 48A of the VAT Executive Regulations, VAT payers with BHD 3 million or less of current or expected annual taxable supplies file quarterly and those above file monthly
- PwC Worldwide Tax Summaries, Bahrain, Other taxes (last reviewed 26 July 2026): VAT implemented on 1 January 2019, current standard rate 10%, BHD 37,500 mandatory and BHD 18,750 voluntary registration
- Oman Tax Authority, VAT frequently asked questions: the standard rate of tax is 5% on most goods and services
- PwC Worldwide Tax Summaries, Oman, Other taxes (last reviewed 7 July 2026): VAT effective 16 April 2021, OMR 38,500 mandatory and OMR 19,250 voluntary registration, quarterly returns due 30 days from the end of the quarter
- PwC Worldwide Tax Summaries, Qatar, Other taxes (last reviewed 26 February 2026): Qatar imposes no VAT or sales tax on operations in Qatar
- Qatar General Tax Authority: the taxes administered are income tax, capital gains tax, withholding tax, excise tax and the global minimum tax, with no VAT among them
- PwC Worldwide Tax Summaries, Kuwait, Other taxes (last reviewed 22 July 2026): the GCC framework agreement is under discussion in Parliament while the draft law is under preparation by the government
- Baker McKenzie, Middle East: GCC VAT framework update (June 2026): each member state may apply VAT at its domestic rate provided the rate is not lower than 5%, referring to the Saudi 15% and Bahrain 10% rates
- SIX, ISO 4217 currency code list one (published 1 January 2026): minor units of 2 for AED, SAR and QAR and 3 for BHD, OMR and KWD
This calculator gives an estimate at the standard rate of the country you pick. It is not tax advice and it is not a government tool. Rates, thresholds and filing rules change, zero rated and exempt supplies follow their own rules, and place of supply decides which country taxes a cross border sale. Confirm the treatment with the relevant tax authority or a qualified adviser before you invoice or file.