Paper Title
VAT – Different Approach in Europe and GCC – A Comparative Analysis

Abstract
The work paper comes to underline the mechanism of VAT, and why this tax is a controversial one – which can bring benefits, or can adversely affect individuals, businesses and the entire economies in general. The paper underline the reason for which this tax comes with benefits, and in the same time, if the control is not very well implemented how VAT can generate fraud. The work paper focused on VAT and its process in certain countries from Gulf Region and Europe as well. Authors conclude the paper with following findings – the tax may be called a controversial one seeing that without a clear laws and regulations it can generate fiscal fraud, on domestic and international level; VAT influences purchasing power, as a crucial element in the retail price structure; VAT is a main tool used by the government to relax or accelerate the economic growth; taxation is a key factor in business decisions; and, nowadays, VAT is a subject of many fiscal bi or multilateral states agreements to stimulate international trade and economic developments, furthermore also avoid double taxation and tax evasion. Keywords - VAT; taxation policy and procedures; financial business decision; purchasing power price; tax evasion; governmental tool.