Article 1 of the GCC Common VAT Agreement provides the foundational definitions for the application of VAT across Member States. It defines key concepts such as 'Tax' (VAT), 'Taxable Person', and 'Economic Activity'. The article distinguishes between 'Taxable Supplies' (standard or zero-rated) and 'Exempted Supplies' where Input Tax is non-deductible. It defines logistical and business terms including 'Place of Business', 'Fixed Establishment', and 'GCC Territory'. Furthermore, it introduces crucial mechanisms like the 'Reverse Charge' and clarifies the meaning of 'Input Tax', 'Deemed Supply' (as detailed in Article 8), and 'Capital Assets'.