Treatment of Mergers and Acquisitions, VAT in GCC Since VAT implemented on 1st January 2018 in GCC (UAE, Kuwait, Bahrain, Saudi Arabia, Oman, Qatar). There are many things and to be considered when you're making bigger, complex business decisions because it may involve VAT (Value Added Tax) implications that you might not know of for example VAT Treatment of Mergers and Acquisitions, VAT in GCC. Following is the VAT Treatment of Mergers and Acquisitions, VAT in GCC In case of the Mergers and Acquisitions, the business (VAT registered) has two main options: - Acquire the other business as running business Acquire other business as Business Assets In case of the acquisition as the running business all the claims and liabilities of the acquired business will be transfer to the Acquirer. If the business has a history of tax fraud or the tax penalties or late payments, the whole of the TAX history will be transferred to the acquirer but no VAT will be paid on the purchase