Recreation and Entertainment

Contents

1. Introduction

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

2. 1.2. Zakat, Tax and Customery Authority ('ZATCA')

3. 1.3. What Is Value Added Tax?

4. 1.4. This Guideline

2. Definitions of Key Terms

3. Economic Activity and 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. Place of Supply - General Principles

2. 4.2. Place of Supply - Special Cases

3. 4.3. Supplies by Non-Resident Performers

5. Admission Fees

1. 5.1. Date of Supply

2. 5.2. Booking Fees

3. 5.3. VAT Consequences of Cancellation

1. 5.3.1. Adjustment to Consideration

6. Cultural, Artistic, Sport and Entertainment Services - Specific Issues

1. 6.1. Sports Clubs

1. 6.1.1. Membership and Admission Fees

2. 6.1.2. Contract Agreements

2. 6.2. Advertisement and Sponsorships

3. 6.3. Donations

4. 6.4. Competitions: Appearance Fees and Prize Monies

5. 6.5. Temporary Importation for Events

6. 6.6. Private Jets, Boats, and Similar Transportation

7. Hotel, Restaurant and Catering Services

1. 7.1. Hotels and Serviced Accommodation

2. 7.2. Hotel Operating Companies

1. 7.2.1. Hotel Operator Acts as Principal

2. 7.2.2. Hotel Operator Acts as Agent, but in Its Own Name

3. 7.2.3. Hotel Guest Enters Into a Contract with the Hotel Owner

3. 7.3. Restaurant and Catering Services

4. 7.4. Discretionary Tips

8. Input VAT Deduction

1. 8.1. General Provisions

2. 8.2. Proportional Deduction Relating to Input VAT

3. 8.3. Restrictions to Input VAT Deduction

1. 8.3.1. Entertainment, Sporting, Cultural or Catering Services

2. 8.3.2. Goods or Services Purchased for Onwards Supply

3. 8.3.3. Catering During an Event

4. 8.3.4. Catering Provided by Employers

5. 8.3.5. Fulfilment of Legal Obligations by Employers

9. VAT Obligations of the Taxable Person

1. 9.1. Issuing Tax Invoices

2. 9.2. Filing VAT Returns

3. 9.3. Keeping Records

4. 9.4. Certificate of Registration Within the VAT System

5. 9.5. Correcting Past Errors

10. Penalties

11. Applying for the Issue of Rulings (Interpretative Decisions)

12. Contacting Us

13. Questions and Answers