Saudi Arabia and the UAE went ahead with the introduction of a value-added tax (VAT) as planned on 1 January, with some teething problems quickly becoming evident. The other Gulf Co-operation Council (GCC) members have opted for a wait-and-see approach, although all are still signed up to the principal of introducing VAT eventually.The approaches vary between the two countries at the forefront of the new tax. In the UAE, private education has been given a 0% VAT rate, while in Saudi Arabia it merits a 5% levy.
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