VAT in the GCC: rates and tax invoice basics for retailers

The GCC countries agreed a common VAT framework, but each country implements it in its own way. For a retailer or distributor, the practical questions are always the same: what rate do I charge, what must my invoice show, and how do I report it?

Standard VAT rates

Some goods and services are zero-rated or exempt, and the lists differ by country. Your tax authority’s guides are the reference.

What a tax invoice shows

A full tax invoice for a business customer typically shows:

• the words “Tax Invoice”, your name, address and VAT registration number;
• a sequential invoice number and the date;
• the customer’s name, address and VAT number;
• a description, quantity and price for each item, and any discount;
• the VAT rate, the VAT amount and the total, with VAT in the local currency.

Sales to consumers can often use a simplified invoice, but the conditions vary, so check your country’s rules.

Country notes

United Arab Emirates

The Federal Tax Authority (FTA) administers VAT. The UAE has announced a phased e-invoicing programme, so keep an eye on FTA announcements for the dates that apply to your business.

Saudi Arabia

ZATCA requires electronic invoices that meet its FATOORA rules, including specific data fields and a QR code. Before choosing any billing software in Saudi Arabia, confirm that it meets ZATCA’s current e-invoicing requirements.

Oman

The Oman Tax Authority administers VAT at 5%. Remember that the Omani rial uses three decimals, so your prices, invoices and reports should too.

Keep VAT reporting simple

1. Set your VAT rates once on products, not on each bill.
2. Record purchases with the supplier’s VAT number and the VAT you paid.
3. Correct issued invoices with credit notes, never by editing them.
4. Reconcile output VAT and input VAT every month, not at the deadline.

In ZaleBee, you choose your own VAT rates and tax number, invoices can be in Arabic or English, and VAT reports come from the same sales and purchases. Use the free checklist above to review your invoice layout.