Amendments to KSA VAT IRs

The board of directors of the Zakat, Tax and Customs Authority (ZATCA) has approved amendments to Saudi Arabia's value-added tax implementing regulations (KSA VAT IRs) -which came into effect on 2 December 2022. The amendments are related to the zero-rating 0% of certain supplies.

While article 36 (repeated) contains a tax due date for the application of 0% VAT to military goods (which should address transitional issues), currently no special transitional rules have been provided for the additional zero-rating arising from 34(2) and 34(8), which means that 0% VAT should apply to the concerned supplies if the associated date of supply falls on or after 2 December 2022 (in accordance with Article 18 of Saudi Arabia's VAT law).