VAT in Kuwait 2026: is there VAT?
Kuwait has not introduced VAT. Below: what is taxed instead, what is known about a start date, and the rates in the rest of the Gulf.
Kuwait does not apply VAT as of October 2026: no VAT law has been issued and there is no official start date. Kuwait has signed the GCC Common VAT Agreement (standard rate 5%) and the draft law is still being prepared; press reports in 2024 said it would not be introduced before 2028.
What taxes apply to spending in Kuwait?
Kuwait has no income tax on individual salaries and no VAT. Most charges on consumption are customs duties on imports.
VAT in the Gulf states 2026
| Country | Standard rate |
|---|---|
| 🇸🇦 Saudi Arabia | 15% |
| 🇦🇪 United Arab Emirates | 5% |
| 🇶🇦 Qatar | Not applied |
| 🇰🇼 Kuwait | Not applied |
| 🇴🇲 Oman | 5% |
| 🇧🇭 Bahrain | 10% |
Frequently asked questions
Is there VAT in Kuwait?
Kuwait does not apply VAT as of October 2026: no VAT law has been issued and there is no official start date. Kuwait has signed the GCC Common VAT Agreement (standard rate 5%) and the draft law is still being prepared; press reports in 2024 said it would not be introduced before 2028.
When will Kuwait introduce VAT?
No official date has been announced. Any date you see online is a forecast by advisers, not a government decision. We will update this page as soon as a law or decision is issued.
What will the VAT rate be in Kuwait?
The GCC Common VAT Agreement sets the standard rate at 5%, the rate the UAE started with. Today: Saudi 15%, UAE 5%, Oman 5%, Bahrain 10%.
Do I pay VAT if I buy from abroad while living in Kuwait?
A shop in a country that applies VAT usually charges it only on domestic sales. Exports to another country are usually zero-rated, and you may pay customs duty when the parcel arrives.
Sources
Last checked: 9 October 2026.
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