Oracle NetSuite HR Optimizer Invitation

Amendments to KSA VAT Implementing Regulations

 Oracle NetSuite HR Optimizer Invitation

On December 2, 2022, amendments to the KSA VAT Implementing Regulations which were earlier issued for public consultation have been published in the official Gazette. There is no official announcement on the effectivity date but it is expected that the amendments will take effect from the date of the publication.


A.  Article 33 (2) – Services provided to non-GCC residents

Zero rating may still apply where services are separately supplied from supplies falling under the special cases for place of supply, whether directly or indirectly related to it, and provided that other conditions for zero-rating are met (i.e., recipient is residing outside the GCC member states).

B.  Article 34 (2) and (8) –Transportation Services for Goods or Passengers Outside the Kingdom

§  Removal of the 2 requirements for international passenger carriage to be subject to zero-rated VAT.

§  Further clarification on the definition of qualifying means of transport

v The minimum requirement of 10 passengers is removed from aircraft and vessel 

C.  Article 36 (New Article) –VAT zero-rating of supply of qualified military goods to government armed forces and internal security forces

§  VAT zero-rate shall apply to qualified military goods supplied to armed forces and government internal security forces made through a ZATCA-registered taxable person licensed in military industrialization by General Authority for Military Industries (GAMI)

§  Qualified military goods

v Locally manufactured by the same supplier applying the zero-rate

v Supplier obtained a certificate of supplying qualified military goods from GAMI

Contact Us

Markus Susilo
Markus Susilo
Partner- Payroll and Indirect Tax
Michel Ruitenberg
  Partner DIFC - Indirect Taxes