VAT- exempt sectors
The following categories of supplies will be exempt from VAT:
- The supply of some financial services (clarified in VAT legislation)
- Residential properties
- Bare land
- Local passenger transport
Zero rated supplies
Zero-rated supplies encompass a range of transactions, which include:
- Exports of goods and services to destinations outside the GCC.
- International and intra-GCC transportation services.
- Supplies related to specific sea, air, and land means of transportation (e.g., aircraft and ships).
- Precious metals intended for investment purposes, such as gold, silver, and platinum.
- Newly constructed residential properties that are supplied for the first time within three years of their construction.
- Certain educational services and relevant goods and services.
- Certain healthcare services and associated goods and services.
- Designated food items (subject to a standardized list ratified by the Financial and Economic Cooperation Committee across the GCC).
- The oil sector and the oil and gas derivatives sector (at the discretion of each member state).
