Value Added Tax (VAT) has been introduced in the United Arab Emirates and Saudi Arabia for the first time, kicking in on January 1, 2018.
The 5% levy is being applied to the majority of goods and services.
Hotel rooms and services as well as purchases on food, clothes, gasoline, housing, telecommunications and utility bills all now have VAT applied.
A few services have been made exempt from the tax, or given a zero-tax rating, such as medical treatment, financial services and public transport, local media have reported. Saudi Arabia is in the process of working on a mechanism to allow a VAT refund for tourists.
Other GCC member countries, Bahrain, Kuwait, and Oman, have also revealed intentions to introduce VAT, though some have delayed plans until at least 2019.
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