The Value added Tax, commonly called VAT in business parlance, is the most common type of consumption tax levied on goods and services. On 1st January 2018, VAT became an integral part of businesses in the UAE. While offering limited exceptions to some categories including basic food items, healthcare and education, Value Added Tax will be collected at the rate of 5 % on the goods and services, at each step of the supply chain. The new VAT system will be implemented across the GCC countries, although possibly on different dates, at different rates. UAE and Saudi Arabia implemented it w.e.f. 1 January 2018.