On 20 May 2016, the Ministry of Finance announced that the draft new VAT law (draft law) has been finalized and will be submitted to the parliament shortly.
The draft law provides for the exemption of 52 types of goods and services.
The list of exempt goods includes:
- Oil, gas and mineral resources to the extent that they have not been processed
- Medical implants and other specific medical equipment used for dialysis
- Paper intended to be used for printing purposes
- Production, sale and transport of electricity
- Production, purification, desalination and transport of water.
The list of exempt services includes:
- Banking services supplied exclusively by banks
- Postal services and financial services other than those supplied by banks, including leasing services, which are under the supervision of the General Financial Services Control Committee
- Landline internet services for one year as of the entry into force of the new VAT law
- Education, training and scientific research
- Media production, including the production of films and the production of literary and artistic work
- Services provided by public libraries, cultural centers, museums and news agencies
- Farming services, harvesting and supply of agricultural labor
- Non-commercial services rendered by not-for-profit organizations.
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