GTL Summary:

Article 73 mandates that each GCC Member State must implement local transitional provisions to manage the introduction of VAT. It establishes that tax becomes due on supplies and imports from the effective date of the local law. States are required to define registration timelines for persons obliged to register at inception. A key provision allows Member States to disregard the date of an invoice or payment if it precedes the VAT implementation or registration date, treating the actual date of supply as the tax due date. This principle extends to Intra-GCC supplies. For continuous supplies, VAT is not levied on the portion of the supply completed before the law's effective date or the supplier's registration.

Document Type: Tax Law Article
Law: Common VAT Agreement
Article Number: 73
Country: 🏳️ GCC
Location: Chapter 13 - Transitional Provisions
Order: 73
Last updated at: 2025-12-19 09:23:02 UTC

Chapter 13 - Transitional Provisions

Article 73

Each Member State must provide in its Local Law transitional provisions dealing with the following aspects at least :

  1. Tax shall be due on supplies of Goods and Services and on imports of Goods as from the date the Local Law comes into effect in the Member State.

  2. Each Member State shall determine timelines for registering Taxable Persons obliged to be registered on the date the Local Law comes into effect.

  3. Notwithstanding any other provision in this Agreement, should an invoice be issued or Consideration paid before the date of application of the Local Law or prior to the registration date and the Supply occurred after such date,then each Member State may ignore the date of the invoice or payment and consider the Tax due date to be the date of the Supply.

  4. The provisions of subsection 3 of this Article shall apply to Intra-GCC Supplies between a Taxable Supplier residing in a Member State and a Customer in another Member State.

  5. With regard to continuing supplies that are partially performed before the date on which the Local Law comes into force or before the registration date and partially after such date, then Tax shall not be due on the part performed before the date of coming into force or of the registration.

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