KSA VAT Implementing Regulations

The KSA Zakat, Tax and Customs Authority (ZATCA) recently issued an unofficial updated version of the KSA VAT Implementing Regulations, and we provide below the salient amendments made to the published in January 2018 version vs the updated May 2022 version.

The Zakat, Tax and Customs Authority (ZATCA), as the tax authority in the KSA has the power to make amendments in the existing VAT rules and regulations

ZATCA has published a number of cabinet resolutions from 2019 to 2021 to introduce amendments to the rules and regulations. However, they have only released the updated integrated VAT Implementing Regulations in May 2022.

• Supply of Real Estate (RE)
  • Aside from residential RE, supply of commercial, or agricultural RE or bare land, through transfer of ownership or right to dispose, is now exempt from VAT

• Date of supply
  • Continuous supply of services
  • Supply to government agencies
  • Nominal supply from cessation of economic activity

• Zero-rating (ZR) of export of services
  • Removed the condition that goods/ services must be consumed outside KSA

• Tax Invoices
  • Tax invoice is required for intra-GCC supplies, exports and ZR supplies to customers outside KSA.
  • Cases where a summary tax invoice should be issued.
  • Introduced e-invoicing regulations

• Records
  • Non-resident taxable person without tax representative in the KSA is required to appoint a third party for recordkeeping requirements.

• Payment of Import Tax
  • Import tax due payment via tax returns shall not be later than 30 days from import date

• Registration of a Nonresident
  • A non-resident taxpayer is no longer required to appoint a tax representative.
  • All non-resident taxpayers must provide a cash security/bank guarantee.

• How can Crowe help?

• Assist taxpayers to perform a VAT health check to assess if their practices in place are in accordance with the updated rules and regulations.