Law & Regulations

The Law and Implementing Regulations outlined in this section articulate and define the rules and procedures regulating the implementation of VAT and the legal parameters of the words, articles and statements pertaining to VAT Law and VAT Implementing Regulations.

 

The Unified Agreement for Value Added Tax (VAT) of the Cooperation Council for the Arab States of the Gulf

The Unified Agreement for VAT of the Cooperation Council for the Arab States of the Gulf was published by UM AL-QURA in its issue number 4667 dated H1438/7/24. This agreement is to set forth the unified legal framework to introduce VAT in the GCC states, which will be imposed on the supply of goods & services. The Kingdom's approval of the agreement was issued by Royal Decree (number m/51 dated H3/5/1438).

In order to access the Unified Agreement for VAT of the Cooperation Council for the Arab States of the Gulf, please follow this link

This Unified Agreement for VAT of the Cooperation Council for the Arab States of the Gulf must be transposed into domestic legislation across the GCC Member States, as such KSA VAT Law and draft Implementing Regulations have been developed.


VAT Law

The VAT Law defines the introduction of VAT outlined in the Unified Agreement for VAT of the Cooperation Council for the Arab States of the Gulf, it was applied on 1st January 2018 (H1439/4/14).

The VAT Law was officially approved and published on H1438/11/4.

In order to access the VAT Law, please follow the link

 

VAT Implementing Regulations

The VAT Implementing Regulations expand on the areas covered within the KSA VAT Law, detailing rules for implementation and giving taxpayers sufficient information to complete their VAT compliance requirements. The Implementing Regulations cover:

  • Definitions
  • Taxable Persons
  • Supplies of Goods and services
  • Place of Supply
  • Exempt Supplies
  • Zero-rated Supplies
  • Value of Taxable Supplies
  • Imports
  • Calculation of Tax payable
  • Procedure and administration
  • Refunds of Tax
  • General provisions

The VAT Implementing Regulations were officially approved on H1438/12/4.

In order to access the VAT Implementing Regulations, please follow the link

 

Key points of VAT Implementing Regulations

Scope of VAT

VAT Guideline for Economic Activity is coming soon, stay tuned

 

rate of treatment

bad debt

 

 

sme

 

VAT Penalties