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Saudi Arabia VAT reverse charge foreign providers

  • VAT
  • 05 October 2018 | Richard Asquith

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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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.