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Kuwait VAT on foreign digital services Jan 2023?

Gulf state likely to launch VAT regime 2023, including obligations for non-resident service providers and marketplaces

Kuwait’s 2023 VAT implementation potential plan means that non-resident providers of telecommunications, broadcast and digital or electronic services can expect to be obliged to VAT register and charge 5% VAT to local consumers.

What digital services will be subject to Kuwait VAT?

Kuwait will adopt VAT on digital services along the lines of Saudi Arabia, the UAE, Bahrain and Oman. Income from the following services are likely to be liable to Kuwaiti VAT:

  • Multimedia, streamed or download
  • Mobile phone and other apps
  • SaaS / cloud-based software
  • e-books and online journals
  • Dating websites and similar subscription services
  • Advertising
  • Website and domain-name services
  • Online storage
  • E-learning
  • Broadcast TV and radio
  • Telecommunications – voice and data

VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

Africa & Middle East VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Algeria 9% Jan 2020 Nil
Angola 14% Oct 2019
Bahrain 10% Jan 2019 Nil
Benin 18% Oct 2023 TBC
Botswana 14% 2024 - Pending implementation
Cameroon 19.5% Jan 2020 XAF 50 million
Congo, Democratic Republic 16% Jan 2024 -
Egypt 14% Sep 2016 EGP 500,000
Ghana 12.5% Apr 2022 GHS 200,000
Israel 17% TBC Proposals withdrawn
Ivory Coast 18% 2022 -
Jordan 16% JOD 30,000
Kenya 16% Sep 2013 - Registration threshold removed 2023
Kuwait 5% Jan 2024? - TBC
Mauritius 15% 2020
Morocco 20% 2024
Nigeria 7.5% Jan 2020 $25,000
Oman 5% Apr 2021 OMR 35,000
Rwanda 18% TBC
Saudi Arabia 15% Jan 2018 Nil
Senegal 18% Apr 2024 Nil Fiscal representative required
Sierra Leone 15% SLE 100,000
South Africa 15% Jun 2014 ZAR 1 million
Tanzania 18% Jul 2022 Nil Residents since Jul 2015
Tunisia 19% Jan 2020 Nil Withholding VAT; 3% Royalty Tax
Uganda 18% Jan 2020 UGX 150m
United Arab Emirates 5% Jan 2018 AED 375,000
Zimbabwe 14.5% Jan 2020 Nil
Zambia 16% Jan 2024 Fiscal Representative req'd

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