Professional Services

Contents

1. Introduction

1. 1.1. Implementing a Value Added Tax ('VAT') system in the Kingdom of Saudi Arabia ('KSA')

2. 1.2. General Authority of Zakat and Tax

3. 1.3. What is Value Added Tax?

4. 1.4. This Guideline

2. Definitions of Key Terms

3. Economic Activity and VAT Registration

1. 3.1. Who carries out an Economic Activity?

2. 3.2. Mandatory registration

3. 3.3. Optional VAT registration

4. Place of Supply

1. 4.1. General

2. 4.2. Supplies to Taxable Customers in other GCC States

3. 4.3. Services related to Real Estate

4. 4.4. Electronic Services

5. 4.5. Training Services

6. 4.6. Receipt of services by Taxable Customer in KSA

5. Zero-rated Supplies

6. Tax Due Date

1. 6.1. General

2. 6.2. Continuous Supplies

7. Consideration

1. 7.1. Disbursement

2. 7.2. Reimbursement

3. 7.3. Adjustment to consideration

8. Professional events and seminars

1. 8.1. Events where delegates pay an attendance fee

2. 8.2. Events without payment

3. 8.3. Provision of catering

9. Financial advisory

1. 9.1. General provisions

2. 9.2. Financial advisory services

10. Global Contracting

1. 10.1. Global Contracting

2. 10.2. VAT consequences of supplies under global contract

   1. 10.2.1. Determining supplier and customer

   2. 10.2.2. Charges within a single legal entity

   3. 10.2.3. Zero-rating under global professional services contracts

   4. 10.2.4. Analysing a global contract

11. Intercompany charges

1. 11.1. Management Services

2. 11.2. Other Services within the group

3. 11.3. Date of Supply

4. 11.4. Transfer Pricing Adjustments

12. Input VAT deduction

1. 12.1. General Provisions

2. 12.2. Proportional deduction relating to input VAT

13. VAT obligations of the Taxable Person

1. 13.1. Issuing tax invoices

2. 13.2. Filing VAT Returns

3. 13.3. Keeping records

4. 13.4. Certificate of registration within the VAT system

5. 13.5. Correcting past errors

14. Penalties

15. Applying for the issue of rulings (interpretative decisions)

16. Contacting us

17. Q&A