When considering global milestones in VAT development, one definitely cannot overlook the introduction of VAT in the Gulf region. In light of the fall in oil prices, Gulf countries have been looking for other sources of revenue. The introduction of VAT was found to be a suitable measure that could meet the demands of local governments by generating large revenues. This is probably not much of a surprise since indirect taxation has been a well-known and effective financial policy tool across the globe.
Source Ridvan Yigit
See also VAT Laws in the GCC – Links to the applicable laws
