Value Added Tax
Consumption taxes such as VAT and GST are increasingly in prominence and now exist in nearly 150 countries
IN OECD countries, the share of taxes on consumption represents 31 per cent . VAT is now the largest source of taxes on general consumption, accounting an average for 6.6% of GDP and 19.5% of the total tax revenues.
GCC VAT implementation most likely by 1 January 2018 with an expected transition period between 12 to 18 months.
VAT is indirect tax on all goods and services sold and purchased.
VAT is levied at each stage in the chain of production and distribution
VAT is collected by businesses on behalf of the VAT authorities and VAT paid on purchases or expenses is credited against VAT charged on supplies made
Taxable supply is the supply of goods or services made by a taxable person, which takes place in the relevant country.