Oil and gas services subject to the VAT

The Finance Ministry will be applying the value-added tax on 20 petroleum services that had been subject to a sales tax, according to Al Mal. While E&P operations are still exempt from the VAT, ancillary goods and services provided to operations at rigs are not. The list sent to the Oil Ministry last week includes medical and social services, supplying sites with passenger cars and spare parts, prepaid mobile phone cards, alcoholic beverages and tobacco, sportswear and gear, accounting services, as well as tour organization and operation, among others.