GTL Summary:

Article 29 of the GCC Common VAT Agreement grants each Member State discretionary power over the VAT treatment of specific sectors. States may choose to either exempt or apply a zero-rate tax to the education, health, real estate, and local transport sectors. The specific conditions and provisions for implementing these measures are determined by each state's domestic legislation. Additionally, the article permits each Member State to subject its oil, oil derivatives, and gas sector to the zero-rate, with the implementation details and conditions also being set at the national level.

Document Type: Tax Law Article
Law: Common VAT Agreement
Article Number: 29
Country: 🏳️ GCC
Location: Chapter 6 - Exceptions
Order: 29
Last updated at: 2025-12-19 09:23:02 UTC

Chapter 6 - Exceptions

Article 29 - Rights of States to Exempt Certain Sectors or Tax at the Zero-Rate

Each Member State may exempt or tax at zero-rate the following sectors in accordance with the conditions and provisions set by that Member State:
1. education sector;
2. health sector;
3. real estate sector; and
4. local transport sector.
Each of the Member States may subject its oil, oil derivatives and gas sector to Tax at zero-rate in accordance with the conditions and provisions set by each Member State.

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