Many businesses in the region don’t stop at one border. A Dubai head office might have a branch in Riyadh, a warehouse in Muscat and customers in Doha. Each GCC country has its own VAT rules, and e-invoicing is arriving at a different speed in each one.
This guide explains in plain language how Microsoft Dynamics 365 Business Central works across the six GCC countries, where each country stands on VAT and e-invoicing, and how to set up one system that keeps every company compliant.
Key takeaways
- Business Central is available in all six GCC countries, with data hosted in Microsoft’s UAE data centres.
- Saudi Arabia already enforces e-invoicing (ZATCA Phase 2). The UAE starts mandatory e-invoicing in January 2027.
- Oman is introducing its Fawtara programme. Bahrain, Qatar and Kuwait have no published e-invoicing go-live dates yet.
- One Business Central environment can run separate companies per country, each with its own VAT setup and e-invoicing app.
GCC VAT and e-invoicing at a glance
| Country | VAT | E-invoicing status |
|---|---|---|
| United Arab Emirates | 5% (since 2018) | Mandatory from 1 January 2027 for businesses above AED 50 million revenue; smaller businesses by 1 July 2027 |
| Saudi Arabia | 15% | Live. Phase 2 waves continue; Wave 25 (above SAR 187,500) must integrate by 1 February 2027 |
| Oman | 5% (since 2021) | Fawtara e-invoicing programme being introduced by the Oman Tax Authority; confirm phase dates with the OTA |
| Bahrain | 10% | No mandatory e-invoicing date published yet by the National Bureau for Revenue (NBR) |
| Qatar | No VAT yet | No VAT or e-invoicing start date announced by the General Tax Authority |
| Kuwait | No VAT yet | No VAT or e-invoicing start date announced |
Rules change often. Always confirm dates with the official tax authority in each country before you plan a go-live: the UAE Federal Tax Authority and Ministry of Finance, ZATCA (Saudi Arabia), the Oman Tax Authority, Bahrain’s National Bureau for Revenue, Qatar’s General Tax Authority and Kuwait’s Ministry of Finance.
What Business Central offers across the GCC
Microsoft lists Business Central as available in the UAE, Saudi Arabia, Oman, Bahrain, Qatar and Kuwait. In each of these countries, Microsoft provides the international (W1) version and local partners publish localization apps on Microsoft Marketplace for country-specific needs such as tax reporting and e-invoicing.
- Multi-company: run a separate company for each country inside one environment, each with its own VAT settings and chart of accounts.
- Multi-currency: invoice in AED, SAR, OMR, BHD, QAR or KWD, and report group results in one currency.
- Intercompany: post transactions between your group companies without re-keying them.
- Consolidation: combine every company’s figures into one group report.
- Data in the region: GCC environments are hosted in Microsoft’s UAE Azure geography.
Why it matters for growing GCC businesses
Without one system, finance teams end up with different software in each country, monthly spreadsheets to consolidate, and separate e-invoicing projects for each tax authority. Putting every country in one Business Central environment means one set of processes, one place for reporting, and a clear plan as each country’s e-invoicing rules arrive.
How to set up Business Central for several GCC countries
- Map your legal entities: list each company, its country, VAT registration and currency.
- Create one company per legal entity in Business Central, using the correct country localization.
- Set up VAT per country: 5% UAE, 15% Saudi Arabia, 5% Oman, 10% Bahrain, and no VAT for Qatar and Kuwait entities.
- Add e-invoicing where required: a ZATCA app for Saudi companies, and a PINT AE / Peppol solution for UAE companies. See our UAE e-invoicing guide and ZATCA Phase 2 guide.
- Set up intercompany and consolidation so group reporting is automatic.
- Review each year: e-invoicing rules in Oman, Bahrain and Qatar are still evolving.
A practical example
A Dubai trading group runs three companies: Dubai (head office), Riyadh and Muscat. Each used to have its own accounting software, and group reports took a week every month. After moving to one Business Central environment, each company keeps its own VAT setup, the Riyadh company clears invoices with ZATCA, and the Dubai company is getting ready for UAE e-invoicing in 2027. Intercompany sales post automatically, and the group report is ready on day two of the new month.
Checklist for a GCC rollout
- Legal entities, VAT numbers and currencies listed
- One Business Central company per legal entity
- VAT rates and categories set per country
- ZATCA app for Saudi entities; UAE e-invoicing plan for UAE entities
- Intercompany and consolidation configured
- Owner assigned to track new e-invoicing rules in Oman, Bahrain and Qatar
How Mohila can help
Mohila is a Microsoft partner based in Dubai that implements and supports Business Central across the UAE and GCC. We design multi-company setups, configure VAT for each country, and handle UAE e-invoicing and ZATCA Phase 2 so each entity stays compliant. Learn more about our implementation services.
Talk to an Expert
Running companies in more than one GCC country? Book a free 1-hour consultation with a certified Dynamics 365 consultant.
Frequently asked questions
Yes. Microsoft lists Business Central as available in the UAE, Saudi Arabia, Oman, Bahrain, Qatar and Kuwait, with local requirements covered by partner localization apps.
Yes. You can create a separate company for each legal entity, each with its own VAT setup and currency, and use intercompany and consolidation for group reporting.
Saudi Arabia already enforces ZATCA e-invoicing. The UAE becomes mandatory from January 2027. Oman is introducing its Fawtara programme, while Bahrain, Qatar and Kuwait have not yet published e-invoicing go-live dates.
Not yet. As of October 2026, Qatar and Kuwait are the two GCC countries that have not implemented VAT, and neither has announced a start date.
Related reading: Business Central vs Finance and Operations and Implementing an ERP System.
