The Gulf Cooperation Council (GCC) decided to introduce Value Added Tax (VAT) in the six gulf countries – Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and the UAE. With the VAT, a refund scheme has also been introduced. For details, read on. Concept of VAT: VAT is an indirect tax, which is determined by the value of the item at various stages of production, distribution and sales. In GCC 5 per cent flat VAT is applied on most of the goods and services, except a few that have been exempted from its ambit. The GCC has designed a scheme for the business visitors, who have been allowed to claim back VAT on incurred expenses. The Federal Tax Authority (FTA) has declared that foreign businesses can claim back the VAT incurred on some services. According to the Finance department, businesses will be able to reclaim VAT on car rentals, hotels, conferences, exhibitions and training courses. Also, services like consulting, marketing, and legal fees will, in all likelihood, not attract VAT.