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Saudi Arabia digital services VAT 2018

  • Dec 16, 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.


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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 can be contacted at: richard.asquith@avalara.com 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.