Article 1(20) of the GCC VAT Framework (‘the Framework’) states that “Any form of supply of Goods or Services for consideration” is called supply. From this definition, taxpayers can infer that supply by nature can be classified into (i) a supply of goods or (ii) a supply of services. It’s very important to establish whether a registered taxpayer is supplying goods or services since different rules are applicable to identify the tax point, establish the place of supply, adopt a proper tax position and apply correct rates.
Source Khaleej Times
