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Frequently Asked Questions on VAT

Last updated on 12 October, 2018


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How is the supply of water and energy in the Designated Zones treated under VAT?

The supply of water and energy provided for consumption purposes by the water and energy authorities in a Designated Zone will be subject to VAT. This rule is applicable even if the water and energy supplied is used for the production of goods. 

In certain cases, the supply of water and energy traded by businesses may be outside the scope of VAT. 

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