Most of us love GCC countries because they are tax free countries. In GCC countries tax is not levied in any sectors like:- Income tax, Sales, Tax etc.
But now all the GCC countries, Saudi Arabia, Qatar, Bahrain, Oman, United Arab Emirates have agreed to implement (5 % VAT tax ) ( Value Added Tax) and Sin tax as well on some specific sectors by the coming year’s start.We all know that Saudi Arabia is one of the main GCC countries member and now they had made an agreement with other GCC countries like Qatar, Bahrain, etc .
The agreement contains some facts like there are some exceptions on some sectors on which the tax won’t be levied. following sectors will not face any kind of tax. E.g :- Educational sector, Social services, Healthcare and some food items . Staple food is also exempted from the VAT tax and there is not a single chance that these sectors will face VAT tax in future. The application of the VAT tax is approved by the shoura coincil so we can say that this news is 100 percent confirmed . However we can’t say anything further because they can change the rule at anytime. This tax is levied on everyone doesn’t matter if he/she is poor or rich .
What is VAT tax ??
A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of general consumption tax that is collected incrementally, based on the surplus value, added to the price on the work at each stage of production, which is usually implemented as a destination-based tax, where the tax rate is based on the location of the customer.
What is SIN tax ??
A tax on items such as alcohol or tobacco.
however this tax is not common in many countries but now in GCC countries SIN tax will be implemented on soft drinks, Alcohol, Energy drinks,