Article 2 establishes the fundamental principle for the imposition of Value Added Tax in the Kingdom. It stipulates that tax is levied on both the import and supply of Goods and Services, governed by the provisions of the VAT Agreement, the Law, and its Regulations. The standard, or basic, tax rate is set at 15% of the value of the supply or import. This rate applies universally unless a specific provision within the Law or Regulations grants an exemption or mandates the application of the zero rate for that particular supply. The article notes this is without prejudice to paragraph (2).