VAT is a tax levied on the sale of goods and services, and is a cost ultimately borne by consumers.

it is a percentage of difference between cost of production and the final price

• The tax was first introduced in France in the mid-1950s
• Worldwide about 140 jurisdictions now have VAT
• In many developing countries ,it has become the centerpiece of the tax reform
• E.g. Lebanon introduced VAT in 2002
• GCC counties plans to introduce VAT in 2010
• The IMF and the World Bank favor VAT as a fair and efficient intrument and support an increase