The exceptions are also strictly enforced because they are an exception to the rule that VAT is levied.

Zero Rates and exceptions

The supply and importation of goods and services specified in a taxpayer’s tax decree constitute a taxable delivery subject to zero duty. The zero rate applies to the following goods and services:

1. A direct or indirect export to outside the implementing States, as provided for in the Implementing Regulation to the Federal Decree-Law.
2. International carriage of passengers and goods entering or leaving the State or through its territory, including services related to this transport.
3. Air transport of passengers in the state when an “international transport” is considered in accordance with article (1) of the Warsaw Convention for the Unification of Certain Provisions concerning International Carriage in 1929.
4. Provision of air, sea and land transport for the carriage of passengers and goods in accordance with the provisions of this Decree.
5. Supply of goods and services in connection with the provision of means of transport within the meaning of paragraph 4 of this article intended for the operation, repair, maintenance or modification of such means of transport.
6. Provision of aircraft or ships for rescue and assistance by air or sea.
7. Delivery of goods and services in connection with the carriage of goods or passengers by land, air or sea, in accordance with paragraphs 2 and 3 of this Article, intended for consumption on board; or anything consumed by means of transport, installation or addition, or other use during transportation.
8. The delivery or import of equipment or precious metals. The implementing regulation of the Federal Decree Law specifies the precious metals and the rules according to which they are classified as investments.
9. The first delivery of residential buildings within three (3) years of completion either by sale or by rental in whole or in part in accordance with the conditions specified in the executive regulation of this decree.
10. The first delivery of buildings specifically designed for use by charities by sale or rental in accordance with the conditions specified in the Implementing Regulation of this decree.
11. The first delivery of reconstructed buildings from non-residential buildings to residential buildings by sale or lease in accordance with the conditions set out in the Implementing Regulation of this Legislative Decree.
12. The supply of oil and natural gas.
13. Provision of educational services and related products and services for childcare, pre-school education, primary education and higher education institutions owned or financed by the federal or local government, as defined in the executive decree of this decree.
14. Provision of preventive and basic health services and related goods and services in accordance with the provisions of this Decree.