Common Excise Tax Agreement of the States of the Gulf Cooperation Council (GCC)

Compliance Requirements

Article (11) Compliance on Import and Export

1. An importer shall be required to declare any Due Tax upon import in accordance with the provisions of the Common Customs Law. Each Member State shall determine the payment procedures.
2. The procedures and mechanism of import and export specified in the Common Customs Law shall apply to all import and export transactions of Excise Goods, in such a manner as not to conflict with the provisions of this Agreement.

Article (12) Licensing

The Tax Administration may license any person to allocate a Tax Warehouse in accordance with the rules and conditions specified by the Member State.

Article (13) Registration

For tax purposes, any person designated by the Tax Administration as a Person Obligated to Pay Tax shall be required to register in accordance with the provisions of Article (7) of this Agreement.

Article (14) The Making and Keeping of Records and Books of Account

1. Persons Obligated to Pay Tax are required to keep regular and independent accounting books and records to record the movement of Excise Goods, as well as supporting documents, and to maintain them in an organized and logical manner, making it possible for the Tax Authority to monitor the accuracy of tax calculation and payment.
2. Accounting books and records and supporting documents shall be retained for a period of five years from the end of the fiscal year during which that operation took place, unless they are required to be retained for a longer period under any of the laws in force in each Member State.

Article (15) Tax Returns

1. A person required to register shall file tax returns. Each Member State shall determine its own tax period or periods, provided that no period shall be less than one month and or more than one year.
2. Each Member State is entitled to exempt importers from filing tax returns.

Article (16) Payment of Tax

Subject to the provisions of Articles (14) and (15) of this Agreement, a person required to file tax returns shall pay the Due Tax for each month of the Gregorian year within 15 days from the end of the month.

Article (17) Control and Inspection

Each Member State shall determine the measures necessary for monitoring the correctness of the application of tax.

Article (18) Special Marks/Stamps on Excise Goods

The Ministerial Committee shall determine the Excise Goods upon which special marks/stamps shall be placed, and the rules necessary for that purpose in the GCC Territory.

Common Excise Tax Agreement of the States of the Gulf Cooperation Council (GCC)

The Common Excise Tax Agreement of the Gulf Cooperation Council (GCC) States outlines compliance regulations. Article 11 requires importers to declare Due Tax during imports as per Common Customs Law, with payment procedures determined by each state. Import and export processes follow Common Customs Law guidelines for Excise Goods, aligned with this Agreement. Article 12 states that Tax Administration can license individuals for Tax Warehouses adhering to state-defined rules. Article 13 mandates registration for Tax Obligated Persons by Tax Administration, as per Article 7. Article 14 necessitates Tax Obligated Persons to maintain accurate accounting records for Excise Goods movement and taxation. Tax return timelines and payments are detailed in Article 15 and 16. Member States establish measures for tax application monitoring (Article 17), while Excise Goods markings are decided by the Ministerial Committee (Article 18).

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