1 - The terms and phrases mentioned below - wherever they appear in the Law - shall have the meanings specified next to each of them, unless the context requires otherwise:
General Panel: The General Authority for Zakat and Income.
Law: The Value Added Tax Law.
Agreement: The Unified Agreement for Value Added Tax for the GCC countries.
Kingdom: The territory of the Kingdom of Saudi Arabia, which includes areas located outside the territorial waters over which the Kingdom of Saudi Arabia exercises sovereignty and jurisdiction over its waters, seabed, subsoil, and natural resources in accordance with its Law and international law.
Regulation: Any executive regulation of the Law.
Board of Directors: The Board of Directors of the Authority.
Output Tax: The tax due and imposed on any taxable supply of goods or services made by a taxable person.
Tax Invoice: An invoice issued in relation to taxable supplies, in accordance with the requirements stipulated in the Law and the Regulation.

2 - Except as provided in paragraph (1) of this article, the terms and phrases contained in the Law shall have the meanings defined in the Agreement.

1- Without prejudice to what is stated in paragraph (2) of this article, tax is imposed on the import and supply of goods and services, in accordance with the provisions stipulated in the Agreement, Law, and Regulation.

2- The tax is applied at a basic rate of (15%) of the value of the supply or import, unless there is a provision for exemption or the imposition of a zero rate - based on the provisions of the Law and Regulation - on the same supply.

• 1. A taxable person shall be obligated to register according to the economic activities he performs in the Kingdom, and in accordance with the provisions stipulated in the Agreement.

• 2. A person performing an economic activity, who is not obligated to register under the provisions of the Agreement, may voluntarily register, provided that he complies with the terms and conditions provided in the Regulations.

• 3. The Authority shall issue a registration certificate to each registered person, and the Regulations shall determine the information which must be included therein.

• 4. The Authority shall create a register that contains the relevant details of each registered person.

• 5. The Regulations shall determine:

  • a) the terms, conditions, and necessary procedures for registration, its specified deadlines, cases for rejecting a registration application, and procedures for notifying the registrant of the relevant decisions issued by the Authority; and

  • b) the terms and conditions for exempting a taxable person who provides only zero-rated taxable supplies from the obligation to register.

• 1. The Regulations shall determine the terms and conditions under which a tax group may register, amend its registration, or cancel it.

• 2. Members of a tax group shall be treated as a single taxable person.

• 3. All members of a tax group shall be jointly and severally liable for the group’s tax obligations which arise during the term of their membership.

• 1. A taxable person must apply for cancellation of his registration in any of the following cases:

  • a) Cases stipulated in the Agreement.

  • b) If the person is a resident and his total annual revenue does not exceed the voluntary registration threshold during the period set by the Regulations.

  • c) If the person is a non-resident and does not make any taxable supply during the period set by the Regulations.

• 2. The Regulations shall determine the periods and procedures that a registered person must comply with prior to cancelling the registration, the terms and conditions for rejecting an application for registration cancellation, and further cases for registration cancellation.

• 3. A taxable person who cancels his registration shall be liable for all obligations under the Law which arise during the validity of his registration.

• The Regulations shall determine the terms and conditions for implementing the provisions stipulated in the Agreement relating to nominal supplies.

• The Regulations shall determine the terms and conditions for a taxable person’s transfer of goods that constitute part of his assets from the Kingdom to a member state, or vice versa.