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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