VATLive > Blog > VAT > Saudi Arabia digital services VAT 2018 - Avalara

Saudi Arabia digital services VAT 2018

  • VAT
  • 17 December 2017 | Richard Asquith

Saudi Arabia digital services VAT 2018

The Saudi Arabian tax office, GAZT, has confirmed that the supply of digital services by non-resident providers to consumers will be subject to the new VAT regime from 1 January 2018.  This will require foreign providers of digital services to VAT register if they are over the VAT registration threshold of SR1,000,000.  However, if the services are provided via online platforms activing as the intermediary, then the platform is regarded as the principle, and therefore liable to account for the VAT.

Electronic services subject to the new indirect tax include: software, e-subscriptions, mobile applications, and digital content.

Services to VAT registered business in the Kingdom will be nil rated under the reverse charge reporting mechanism.

Latest Saudi news
Saudi Arabia VAT reverse charge foreign providers
October 5, 2018

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...
Saudi Arabia 4,700 VAT violations
April 23, 2018

Following the 1 January 2018 launch of 5% VAT in Saudi Arabia, over 4,700 violations have been found from 12,578 audits of businesses. The figures...
Four Gulf states not ready for VAT till end of 2019
February 15, 2018

The International Monetary Fund (IMF) has declared that the Arab Gulf states of Bahrain, Qatar, Oman and Kuwait will not be prepared for the launch...

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.