Taxable supplies include:
Standard rated supplies – 5% VAT unless zero rated, exempt or out of scope.
Zero-rated supplies – not subject to VAT, right to an input tax deduction on the corresponding expenses. Examples:
- Export of goods and services to outside of GCC
- International air transport
- First sale of newly constructed residential property within 3 years
- Government funded education
- Preventive and basic healthcare
- Supply of crude oil or natural gas