The General Authority of Zakat and Tax (GAZT) has published English-language guidelines on transitional provisions for the increase in the VAT rate to 15% with effect from 1 July 2020. The guidelines cover cases where contracts are signed, or invoices are issued, before 11 May 2020 (when the increase was announced) or during the period between 11 May and 30 June 2020.

As previously reported, this generally includes that if a contract is signed or an invoice is issued before 11 May 2020, and the supply occurs on or after 1 July 2020, the prior 5% VAT can apply as long as the supply is made by 30 June 2021 (or till the end date of the contract or contract renewal date, if earlier). If a contract is signed or an invoice is issued between 11 May and 30 June 2020, the 5% VAT rate applies on the supply made by 30 June 2020 and the 15% rate applies on the supply made on or after 1 July 2020.