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May 15, 2026

Article 31 of the Implementing Regulations of the Value Added Tax Law establishes the framework for zero-rated supplies. It confirms that goods and services listed in Chapter 6 are subject to a zero percent VAT rate, in alignment with the Unified VAT Agreement and the KSA VAT Law. A critical clarification is provided for supplies that could qualify as both exempt under Chapter 5 and zero-rated under Chapter 6. The Article mandates that in such cases of overlap, the supply must be treated as a zero-rated supply, prioritising this treatment over exemption.

Chapter 6 - Zero-Rated Supplies

Article 31 - Zero-Rated Supplies

Supplies of Goods or services listed in this Chapter are zero-rated in accordance with the Agreement and the Law.
A Supply of Goods or services which constitutes both an Exempt Supply in accordance with both Chapter 5 of these Regulations and a zero-rated Supply in accordance with this Chapter is treated as a zero-rated Supply.