Saudi Arabia VAT reverse charge foreign providers
The Saudi Arabian tax authority has published guidance on the reverse charge rules for B2B supplies provided by non-residents.
As with most VAT regimes, the ‘general rule’ place of taxation for services is where consumed. The reverse charge is a VAT simplification which limits the instances where a foreign provider has to VAT register in a third country where they are providing supplies. Instead, their business customer reports a deemed supply (output VAT) and purchase (input VAT) in their VAT return as a matching transaction, and there is no requirement for a cash payment.
Saudi Arabia has now confirmed the special rule place of taxation in other specific conditions, including:
- Live events, including education and business training: where physically performed
- Real estate: where the property / land is located
- Digital, telecoms and broadcast: the country of consumption
- Hotel, restaurant and catering: where performed
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