GCC VAT Rates and Registration Thresholds 2026: All Six Countries

Four of the six Gulf states charge VAT, and two don't charge it at all.

Saudi Arabia charges the most, at 15%. Bahrain charges 10%, and the UAE and Oman 5%. Qatar and Kuwait still have no VAT at all.

The good news? The rules are clear and well documented. Once you know which line you've crossed, registering is an online form.

Here's what each country charges, when you must register, and what a real quarterly return looks like.

GCC VAT rates at a glance (2026)

VAT (value added tax) is a tax on sales. You add it to your price, collect it from the shopper and pay it to the tax authority, minus the VAT you paid on your own costs.

All six states signed the same GCC VAT agreement in 2016. Each one then wrote its own law, with its own rate and limits:

The thresholds count taxable sales over a rolling 12 months. Saudi Arabia also counts sales you expect over the next 12 months, and the UAE over the next 30 days.

Between the two lines, registering is your choice. Below the voluntary line, you generally can't register at all.

What changed in 2026?

Quite a lot, and most of it helps sellers who plan ahead:

• 5% is now a floor, not a fixed rate. Saudi Arabia's Council of Ministers approved the amended GCC VAT agreement in Resolution 887, dated May 2026. Each state may now set its own rate without the others' consent, as long as it's at least 5%.
• Saudi penalty relief runs to year-end. ZATCA extended its penalty waiver scheme to 31 December 2026. It covers returns due by 30 June 2026. If you should have registered earlier, now is the cheapest moment to fix it.
• E-invoicing reaches small businesses. ZATCA's newest wave covers resident businesses above SAR 187,500. The UAE's mandate starts in 2027.
• Parcel limits moved. Dubai raised its duty-free limit to AED 1,000, while Bahrain and Oman cut theirs to 100. VAT still applies to most of those parcels.

Rates themselves didn't move. Saudi Arabia has charged 15% since July 2020. Bahrain moved to 10% in 2022.

When do you have to register for VAT?

It depends on one question: are you resident in that country?

A resident has a local company or branch. A non-resident is a foreign business with no local base, such as a UK brand or a Chinese factory selling into the Gulf.

Residents: the sales thresholds

Residents follow the thresholds in the table. In Saudi Arabia, you check your rolling 12-month sales at each month-end.

Cross SAR 375,000 and you have 30 days after that month ends to apply. Miss it and ZATCA's late-registration fine is SAR 10,000.

Many sellers register voluntarily from SAR 187,500 or AED 187,500. Here's why:

• You reclaim import VAT on every shipment of stock.
• You reclaim VAT on costs such as marketplace fees, rent and ads.
• You look established. A VAT number on your invoices and site builds trust with Gulf shoppers.

Foreign sellers: no threshold

Here's the rule that catches most newcomers. Non-residents get no threshold in Saudi Arabia, Bahrain or Oman.

If you owe VAT on sales there, you register from the first sale, whatever its value. The UAE's tax authority says its threshold doesn't apply to foreign businesses either.

In Saudi Arabia, the details are friendly enough:

• Register within 30 days of your first taxable sale. Registration counts from that sale.
• A tax representative is optional. ZATCA dropped the requirement in 2019.
• You do provide a security. It's cash or a bank guarantee, and it's larger if you don't appoint a representative.
• B2B services are reverse-charged. If your Saudi customer is VAT-registered, they account for the VAT, not you.

Oman is the stricter one. Foreign sellers register through a responsible person, a local tax representative.

The full Saudi process, documents and security calculation are in our guide to Saudi VAT for non-resident sellers.

Check your own numbers

Pick a country, enter a price, then enter your yearly sales. The tool tells you whether registration is mandatory, voluntary or not needed yet:

Switch the business type to non-resident to see the foreign-seller rule for each country. The tool also has its own page: the GCC VAT calculator.

How VAT works on ecommerce orders

Where your goods sit decides who handles the VAT. There are three common set-ups.

1. Cross-border parcels to shoppers. You ship each order from abroad, and the courier usually pays import VAT to clear the parcel. You generally don't register, but the VAT belongs in your price.

Bahrain works the same way: a DDP parcel under BHD 100 pays no VAT and needs no Bahraini VAT number.

2. Stock held in the country. Your goods sit in a local warehouse, 3PL or a marketplace programme such as FBA or FBN. Each sale is a local supply, so you register and charge VAT, even as a foreign seller.

3. Marketplace cross-border programmes. noon Global Shipping and Amazon Global Selling let you list without a local entity. On noon's Global store, the platform adds Saudi VAT to your converted price.

Low-value parcels are where duty and VAT split apart. A parcel can be duty-free and still pay VAT:

	Duty-free parcel limit	VAT on parcels under the limit
Saudi Arabia	Below SAR 1,000	15% on every parcel
UAE (Dubai)	Up to AED 1,000	5% on every parcel
Bahrain	Below BHD 100	None; 10% from BHD 100
Oman	OMR 100 or less	5% on every parcel
Qatar	QAR 1,000 or less	No VAT
Kuwait	KWD 100 or less	No VAT

So a SAR 200 order to Riyadh pays no duty but still carries SAR 30 or more in VAT. Price it in. The country-by-country limits, fees and examples are in our guide to GCC duty-free thresholds.

Filing VAT returns: how often and when?

Once registered, you file a return each period. It shows the VAT you charged, minus the VAT you paid on costs and imports.

Small sellers file quarterly almost everywhere:

For example, a Saudi seller's October–December return and payment are due by 31 January 2027.

Late filing in Saudi Arabia costs 5–25% of the tax due. Late payment adds 5% a month, so a calendar reminder pays for itself.

E-invoicing: Saudi Arabia and the UAE

E-invoicing means your invoices are created in an approved system and shared with the tax authority, not typed in Word or Excel. It's the biggest compliance change for Gulf sellers in 2026–27.

Saudi Arabia: ZATCA Fatoora

ZATCA's e-invoicing system is called Fatoora. It runs in two phases:

• Phase 1 (since December 2021). Every resident VAT-registered business issues invoices from a compliant system. Online orders need a QR code. Non-residents are excluded.
• Phase 2 (since 2023, in waves). Your system connects to Fatoora directly. ZATCA gives each wave at least six months' notice.

The previous wave covered businesses above SAR 375,000, with a June 2026 deadline. Wave 25 now sweeps in resident businesses above SAR 187,500. Any year from 2022 counts toward that line.

Salla, Zid and many ERP tools offer Fatoora-ready invoicing. Shopify stores usually add a ZATCA-qualified app. Our ZATCA e-invoicing guide walks through the set-up.

UAE: mandatory from 2027

The UAE starts with business and government invoices, sent through an accredited service provider (ASP). The dates depend on revenue:

Qatar approved a draft e-invoicing law in May 2026, ahead of any VAT. More on UAE rules is in our UAE VAT guide.

Worked example: one quarter of Saudi VAT with FBA stock

Here's a full return for a US kitchenware brand with no Saudi company. It registered for Saudi VAT before its first sale, then sent one shipment into Amazon FBA in Riyadh at the start of the quarter.

Its inputs for the quarter:

• Stock imported: 2,000 pan sets at a customs value (CIF) of SAR 50 each.
• Customs: 5% duty, plus the 0.15% customs service fee.
• Sales: 1,600 sets on Amazon.sa at SAR 172.50, VAT included.
• Amazon fees: referral and FBA fees of SAR 45 per set, plus 15% VAT.

Registration lets the brand reclaim SAR 26,572.50 this quarter. It pays SAR 9,427.50 instead of the full SAR 36,000.

The import VAT counts in the quarter the shipment clears. That includes the 400 sets still on the shelf.

The same set sold in Dubai at AED 168 carries AED 8 of VAT. Run your own shipment through the landed cost calculator.

Notes for foreign sellers

• Register before stock lands. Your 30 days run from the first sale, and FBA or FBN can sell a unit soon after check-in.
• Budget for the ZATCA security. Without a tax representative, the guarantee is based on double your average quarterly output tax.
• Keep every customs declaration. It's your evidence for the import VAT line on each return.
• Use a local adviser for the first return. Compare VAT and tax advisors in the Middle East.

Notes for UAE-based companies

• Your TRN stops at the UAE border. Saudi, Bahraini or Omani stock needs its own registration.
• Free zone stock is VAT-suspended. Goods pay 5% VAT when they enter the UAE mainland.
• noon's Global store lets a UAE VAT-registered seller reach Saudi shoppers without a Saudi company.

Notes for Chinese sellers

• No Gulf company is needed to start. noon Global Shipping and Amazon Global Selling accept a Chinese business licence.
• A common growth path is a UAE free-zone company, Saudi VAT registration and a Riyadh 3PL.
• The full set-up, from MISA to ZATCA, is in company setup in Saudi Arabia for Chinese businesses.

For every other rule that applies to Gulf sellers, start from our regulations hub.