GCC country settings: VAT and no-VAT countries
You will be able to: Show how the Country setting drives currency and regional defaults; State the standard VAT position of the six GCC states; Explain what changes in the books when a country has no VAT.
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The Country you choose in Settings ▸ Company Profile is more than a label. New customers and suppliers start with that country. The six GCC states sort first in the list, and picking one fills Base Currency with its currency (only while the base currency still holds the previous country's own currency). Business timezone and date style are set separately in Settings ▸ Regional; the timezone list includes Dubai, Riyadh, Qatar, Bahrain, Kuwait and Muscat.
| Country | Currency | Standard VAT (checked 2025 sources) |
|---|---|---|
| United Arab Emirates | AED | 5% |
| Saudi Arabia | SAR | 15% (raised from 5% in July 2020) |
| Oman | OMR | 5% (since April 2021) |
| Bahrain | BHD | 10% (since 2022) |
| Qatar | QAR | No VAT in force |
| Kuwait | KWD | No VAT in force |
Qatar and Kuwait signed the GCC VAT framework but have not introduced VAT. Rates can change, so check the local tax authority before relying on a figure.
What Zeyto's tax screens are built for
- Settings ▸ Tax Management comes with five UAE codes: SR5 (standard), ZR (zero), EX (exempt), RCM (reverse charge) and OOS (out of scope). Rate % on a code can be set from 0 to 100.
- The VAT return, Corporate Tax and e-invoicing screens follow UAE rules: the VAT201 return filed with the Federal Tax Authority, TRN of 15 digits.
- Currencies are not limited to the UAE: a Kuwaiti or Omani business can keep books in KWD or OMR with three decimals.
VAT country versus no-VAT country
In a VAT country every taxable sale carries output VAT, every purchase carries recoverable input VAT, and the difference is settled with the tax authority each period. In a no-VAT country, invoices carry no tax line and there is no VAT account movement: sales, purchases and stock work exactly as before, with totals equal to net amounts.
Try it in the demo
- Open Settings ▸ Company Profile, open the Country list and see the six GCC states first.
- Open Settings ▸ Tax Management and read the five codes with their Rate % and VAT201 boxes.
- Open Settings ▸ Regional and open the Business timezone list.
Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.
- Country pre-fills the base currency (while it still holds the old country's currency) and new party country.
- UAE 5%, Oman 5%, Bahrain 10%, Saudi Arabia 15%; Qatar and Kuwait have no VAT in force.
- Zeyto's VAT return and e-invoicing screens are UAE-specific.
- No-VAT country: same books, no tax line.
Check yourself
5 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.
1. Which GCC states have no VAT in force?
2. The standard VAT rate in Saudi Arabia is 5%.
3. In Company Profile you change Country from the UAE to Oman. What happens to Base Currency?
4. Which pairs of GCC country and standard VAT rate are correct?
Select all that apply.