اللائحة التنفيذية لنظام ضريبة القيمة المضافة

المادة 19

EVIDENTIAL REQUIREMENTS FOR INTERNAL SUPPLIES 1- In cases where a Taxable Person makes an Internal Supply of Goods from the Kingdom to a Person residing in another Member State, that Taxable Person must retain evidence that those Goods have been transported to the state of destination. 2- A Taxable Person who does not have evidence that the Goods have been transported within sixty (60) days of the Supply taking place must treat the Supply as being made without transportation or dispatch from the Kingdom until such evidence is later obtained. 3- For the purposes of this Article, evidence of the transport to the State of destination must include each of the following: a) commercial documentation identifying the Customer and the place of delivery of the goods, b) transportation documentation evidencing the delivery or receipt of goods in the State of destination, c) a customs declaration, if applicable. 4- The Authority may reject the documentation held by a Taxable Person in cases where this documentation does not sufficiently evidence the transport to the destination state. In these cases, the Supply will be treated as being made without transportation or dispatch from the Kingdom until such evidence is later obtained. 5- Following the establishment of an Electronic Services System by the GCC Secretary General in accordance with the Agreement, and upon a request from the Authority, a Taxable Person who makes an Internal Supply must provide the Authority with information corresponding to that supply for entry into that system. The Authority will prescribe the format for provision of such information.

المادة 20

FINANCIAL SERVICES 1- Supplies of Financial Services listed within this Article are exempt from VAT, except in cases where the Consideration payable in respect of the service is by way of an explicit fee, commission or commercial discount. 2- Financial Services include the following services: a) the issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money, b) the provision of any credit or credit guarantee, c) the operation of any current, deposit or savings account, d) financial instruments, such as derivatives, options, swaps, credit default swaps and futures. 3- Islamic finance products, being financial products under contract which are Shari'ah compliant and which simulate the intention and achieve effectively the same result as a Non-Shari'ah compliant financial product will be treated in the same manner as the equivalent non-Shari'ah financial product for the purpose of applying exemption from Tax. 4- In cases where ownership of Goods is transferred temporarily as a part of a Shari'ah compliant financial product or as collateral in relation to a financing or other arrangement, but possession of those Goods is not intended to pass permanently to the recipient of the financial product, the transfer of the underlying Goods is not considered a separate Supply of Goods. A separate Supply of Goods which has been transferred as collateral shall be considered to be made upon the transferee becoming entitled to exercise full rights of disposal of the Goods or the transferee otherwise is acting in such a way that the transfer may no longer be considered temporary. 5- Under the principles described in the second and third Paragraphs of this Article, the following is a non-exhaustive list of Supplies which would be considered exempt Financial Services: a) interest or lending fees charged with an implicit margin for any form of lending, including loans and credit cards, b) interest or lending fees charged with an implicit margin for a mortgage or under a diminishing musharaka arrangement, c) interest or lending fees charged with an implicit margin for finance, including finance leasing, hire purchase products or under a murabaha contract, d) commissions charged on an implicit margin or spread for brokerage services, or under a mudaraba or wakala contract. 6- The issue or transfer of a debt security, equity security, or any other transferable document recognizing an obligation to pay a monetary amount to the bearer will be considered an Exempt Supply of Financial Services. 7- The provision or transfer of a contract of life insurance, or the reinsurance of a life insurance contract is an Exempt Supply of Financial Services. 8- A life insurance contract means any contract of conventional insurance or takaful or other form of Islamic insurance provided by a regulated provider in the Kingdom which results in the payment of a sum contingent on death or other significant event of human life, or a similar contract provided by a Nonresident Supplier.

المادة 30

LEASE OR LICENSE OF RESIDENTIAL REAL ESTATE 1- Subject to the other express provisions of these Regulations, the following Supplies shall exempt from VAT: a) The Supply of real estate, whether commercial, residential or agricultural real estate or developed or undeveloped bare land, through a transfer of ownership or transfer of the right to dispose of the same as an owner; b) The Supply of residential real estate through lease or license. 2- For the purposes of this Article, Residential Real Estate means a permanent dwelling designed for human occupation, including: a) immovable property used or intended to be used as a home, such as houses, flats and apartments, b) other Real Estate intended as a Person's primary residence, including residential accommodation for students or school pupils. 3- Notwithstanding the first and second Paragraphs of this Article, any hotels, inns, guest houses, motels, serviced accommodation or any other building that is designed to offer temporary accommodation to visitors or travelers are not considered as Residential Real Estate. 4- Residential Real Estate includes the boundaries legally assigned to the property, including gardens, garages or any other feature that is considered a permanent part of the property.

المادة 31

ZERO-RATED SUPPLIES 1- Supplies of Goods or services listed in this Chapter are zero-rated in accordance with the Agreement and the Law. 2- A Supply of Goods or services which constitutes both an Exempt Supply in accordance with both Chapter five of these Regulations and a zero-rated Supply in accordance with this Chapter is treated as a zero-rated Supply.

المادة 32

EXPORTS OF GOODS FROM THE KINGDOM 1- For the purpose of applying the zero-rate to an Export of Goods from the Kingdom to a place outside of Council Territory, the Supplier of those Goods must retain evidence that the Goods have been transported from Council Territory within ninety (90) days of the Supply taking place. 2- A Taxable Person who does not have evidence that the Goods have been transported from Council Territory may not treat the Goods as being exported outside of Council Territory after ninety (90) days of the Supply taking place. 3- For the purposes of this Article, evidence of the Goods being transported outside of Council Territory must include at least each of the following: a) export documentation issued by the Customs Department or equivalent Department of another Member State, showing the Goods being formally cleared for export on behalf of the Supplier or Customer of that Supply, b) commercial documentation identifying the Customer and the place of delivery of the goods, c) transportation documentation evidencing the delivery to, or receipt of goods outside of Council Territory. 4- The Authority may reject the documentation held by a Taxable Person in cases where this documentation does not sufficiently evidence the Goods being transported outside of Council Territory. In these cases, the Supply will be treated as being made without export from Council Territory until such evidence is later obtained. 5- A Supply of Goods which is treated as made after the export formalities have been completed will also be subject to the zero rate, provided the Supplier obtains the commercial and transportation documentation prescribed by the third Paragraph of this Article to evidence the transportation of the Goods outside of Council Territory, within the time limit prescribed by the first Paragraph of this Article. 6- All re-exports of movable Goods that were temporarily imported into the Kingdom for repairs, renovation, modification or processing are subject to the same evidential requirements as prescribed by this Article. 7- The Supply of Goods situated in the Kingdom while subject to a customs duty suspension regime, in accordance with the Unified Customs Law, will be treated as zero-rated subject to sufficient evidence being provided by the Supplier as to the location of the goods at the time of their Supply.

المادة 33

SERVICES PROVIDED TO NON-GCC RESIDENTS 1- Except as stated in the second Paragraph of this Article, a Supply of services made by a Taxable Person to a Customer without a Place of Residence in any Member State shall be zero-rated. 2- The first Paragraph of this Article shall not be applicable in any of the following cases: a) If the place of Supply of the services is in any Member State pursuant to the Special Cases listed in Articles seventeen to twenty-one of the Agreement; b) If the Customer is a Resident of any Member State; c) If the Customer or any other Person benefits directly from the services when such Customer or Person is situated in a Member State, and the other Person is not permitted to deduct the Input Tax on such services in full; or d) If the services are performed in relation to tangible Goods which are located within a Member State during the Supply.

المادة 34

TRANSPORTATION SERVICES FOR GOODS OR PASSENGERS OUTSIDE THE KINGDOM AND SUPPLIES RELATING TO TRANSPORTATION 1- The international transport of Goods is zero-rated in accordance with these Regulations. 2- The international transport of passengers is zero-rated in accordance with these Regulations in cases where either: a) The transportation is by way of any qualifying means of transport, b) The transportation is by way of a scheduled passenger flight or voyage which runs according to a published timetable. 3- Services which are directly connected and incidental to a Supply of international passenger transport are zero-rated. Such services include: a) transporting luggage accompanied by passengers, including domestic pets, bicycles, prams and additional luggage charges, b) transporting vehicles and trailers of passengers, c) transporting airport passenger charges and passenger load supplements, d) seat reservations, e) sleeping berths and cabin charges. 4- The Supply of a qualifying means of transport, or of any vessel or aircraft used principally for international transportation of passengers and goods, is zero-rated. 5- Any services relating to Goods or passenger transportation, as defined in Article twenty-five of these Regulations are zero-rated provided these are either: a) ancillary to and provided with a Supply of zero-rated international transport, b) provided in respect of a qualifying means of transport at an airport or port. 6- Subject to the Supplier obtaining a certificate from the Customer that the Supply of Goods and services will be in relation to a qualifying means of transport, the maintenance, repair, or modification of a qualifying means of transport, including the Supply of replacement parts, consumables and other necessary components ordinarily affixed or incorporated into the means of transport in question in connection with those services, are zero-rated. Such zero-rating only applies provided that the purpose of the Supply of those Goods and services is to ensure the continued operation of the vehicle, aircraft or vessel as a qualifying means of transport. Maintenance and repair services must be physically carried out on or at the qualifying means of transport to qualify for zero-rating under this Paragraph. 7- For the purposes of this Article, international transport is the provision of a transportation service by means of a vehicle, aircraft or vessel together with a driver or pilot and with a crew where necessary for the purpose of that service, provided that the transportation service involves transport of Goods or passengers either to a place outside the Kingdom, or from a place outside the Kingdom into the Kingdom. 8- A qualifying means of transport means any vehicle, vessel or aircraft designed or adapted to carry a minimum of ten (10) people, or designed to carry Goods on a commercial basis, which is used predominantly for international transportation and not domestic passenger transportation. Any means of transport adapted for or intended for recreation or private use is not a qualifying means of transport.

المادة 43

ARTICLE FORTY-THREE: COLLECTION OF TAX ON IMPORTS ON ENTRY TO THE KINGDOM 1- Upon importation of Goods, a Taxable Person must provide his Tax Identification Number to the Customs Department. 2- The Customs Department will issue a statement to a Taxable Person for each month in which Imports of Goods are made by that Taxable Person, showing the value of Goods imported and the value of Tax collected thereon. This statement may be made available electronically. 3- The Tax due on the Import of Goods shall be payable on the Import date; Saudi Customs shall be responsible for collecting such Tax as per Customs' procedures. In exceptional cases, where there is no deferral of payment of Import Tax due such that the Taxable Person makes a payment through their Tax Returns pursuant to Article Forty-four, the Board may set the date on which Tax due on Imports is payable, provided that such date is no later than THIRTY (30) days after the date of Import, and may also set forth the procedures, terms and conditions necessary to implement this provision, in coordination with Saudi Customs.

المادة 44

ARTICLE FORTY-FOUR: PAYMENT OF TAX ON IMPORTS THROUGH THE TAX RETURN 1- A Taxable Person may apply for authorization for the payment of Tax on imports to be made through that Taxable Person's Tax Return, instead of being collected by the Customs Department on importation entry. 2- An application may only be made to the Authority to be granted authorization where the following applies: a) the Taxable Person uses a monthly Tax Period and intends to make Imports of Goods on at least a monthly basis,

المادة 45

CALCULATION OF TAX 1- Unless a Taxable Person elects to use the cash accounting basis in accordance with Article forty-six of these Regulations, or unless the Taxable Person is supplying Eligible Used Goods in accordance with Article forty-eight of these Regulations, the Net Tax payable by a Taxable Person in respect of a Tax Period is calculated by deducting the total Input Tax, including Input Tax on imports, allowed to the Taxable Person during the Tax Period from the total of Output Tax payable in respect of all Taxable Supplies made by the Taxable Person in the Kingdom during the Tax Period. This calculation method is known as the invoice accounting basis. 2- The calculation of Tax on any amount of Consideration in respect of a Supply is made in accordance with the following equation: Tax = Consideration x Tax Rate / (100% + Tax Rate) where the Tax Rate is expressed as a percentage.

المادة 46

CASH ACCOUNTING BASIS 1- As an exception to the requirement to use the invoice accounting basis described in Article forty-five of these Regulations, a Taxable Person may apply to calculate Net Tax due for a Tax Period on a cash accounting basis provided that the annual value of Taxable Supplies in the past calendar year does not exceed five million (5,000,000) SAR, and the anticipated value of Taxable Supplies in the current calendar year is not expected to exceed five million (5,000,000) SAR, subject to the second Paragraph of this Article. The Authority shall notify the Taxable Person whether his application has been approved. 2- A Taxable Person who has received notification of a VAT violation in the last twelve months is not eligible to use the cash accounting basis. 3- A Taxable Person using the cash accounting basis shall only include Output Tax and Input Tax in its Tax Return in respect of Supplies of Goods and services for which and to the extent that payment has been made. 4- A Taxable Person may apply to use the cash accounting basis at the time of his application for registration or to obtain his Tax Identification Number with the Authority. A Taxable Person who has not applied in this manner may, at any subsequent time apply to use the cash accounting basis by filing an application with the Authority, provided he is eligible to do so. 5- A change to the cash accounting basis takes effect from the start of the Tax Period following that in which the application is approved. The Authority must provide notification of the approval and the effective date of the change to the Taxable Person. 6- The Tax Return for the first Tax Period following a change from the invoice accounting basis to the cash accounting basis must include an adjustment to the Taxable Person's Output Tax and Input Tax to reflect the Tax calculated on the amounts unpaid in respect of Taxable Supplies made to or by the Taxable Person at the date of the change. 7- The Authority may require evidence of the Taxable Person's turnover to be submitted and may reject an application if it is not satisfied that the Taxable Person is eligible to use the cash accounting basis. 8- A Taxable Person who is approved to use the cash accounting basis must inform the Authority within twenty (20) days of finding that he is no longer eligible to do so, by submitting an application to use the invoice accounting basis as described in Article forty-five of these Regulations. 9- A Taxable Person using the cash accounting basis may voluntarily elect to use the invoice accounting basis after the cash accounting basis has been used for a minimum of two (2) years, by submitting an application. 10- The change to the invoice accounting basis takes effect from the start of the following Tax Period. The Authority shall provide notification to the Taxable Person of the change and its effective date. 11- The Tax Return for the first Tax Period following a change from the cash accounting basis to the invoice accounting basis must include an adjustment to the Taxable Person's Output Tax and Input Tax to reflect the Tax calculated on Taxable Supplies made by or to the Taxable Person without payment by the effective date of the change.

المادة 47

PERSONS LIABLE TO PAY TAX 1- In cases where the Agreement provides that a Taxable Customer is obligated to pay Tax on a Supply received from a Nonresident Supplier, Tax shall be paid by way of the Reverse Charge Mechanism. The Taxable Customer must report the Output Tax on the Supply and any Input Tax (to the extent that the Customer can benefit from Input VAT deduction) in the Tax Return for that Tax Period. 2- In cases where electronically supplied services are supplied in the Kingdom through an online interface or portal acting as intermediary for a Nonresident Resident Supplier, the operator of the interface or portal is presumed to purchase the services from the Nonresident Supplier and to Supply those same services in his own name for the purposes of the Law and these Regulations. The operator of the interface or portal is liable to pay Tax on any such Supply, subject to the third Paragraph of this Article. 3- The presumption in the second Paragraph of this Article does not apply in cases where both of the following conditions apply: a) the Nonresident Supplier is expressly indicated as the Supplier during the online sale process, in the contractual arrangements between the parties, and on the invoice or receipt issued by the operator of the interface or portal, b) the operator of the interface or portal does not authorize charging the Customer for the delivery of the services or the delivery itself or set the general terms and conditions of the Supply.

المادة 48

SUPPLY OF USED GOODS 1- A Taxable Person may apply to account for Tax payable on a Supply of Eligible Used Goods using the profit margin method, subject to the conditions in this Article. The Taxable Person may not use the calculation method in this Article until it has received notification from the Authority that it is approved. 2- For the purposes of this Article, a Supply of Eligible Used Goods must meet all of the following criteria: a) the Supply is that of used Goods situated in the Kingdom, and the Goods are of a type which the Authority has specified are eligible for Tax to be calculated using the profit margin method; b) the Goods were purchased by the Taxable Person in a Supply made to the Taxable Person in the Kingdom by a Non-Taxable Person, by a Taxable Person outside of his Economic Activity, or by a Supplier applying the profit margin method in accordance with this Article, in all cases where such Taxable Person did not deduct any Input Tax on his purchase of the Goods; and c) the Taxable Person meets the criteria stated in this Article in respect of the purchase and supply of those Eligible Used Goods. 3- A Supply of Goods which are situated outside the Kingdom, or which move to or from the Kingdom as part of the supply to or supply by the Taxable Person, is not a supply of Eligible Used Goods. 4- Tax Invoices issued for Supplies of Eligible Used Goods by a Taxable Person must clearly refer to the Taxable Person's use of the profit margin method and must not show any amount of Tax charged in respect of any Supply. 5- In cases where a Taxable Person purchases the Eligible Used Goods from a Non-Taxable Person, the Taxable Person must issue an invoice in respect of the purchase to that Non-Taxable Person. This invoice must include: a) the name, address and Tax Identification Number of the Taxable Person, b) the name and address of the Non-Taxable Person, c) the date of the purchase, d) details of the Goods purchased, including any relevant registration number or other details which the Authority may specify, e) the Consideration payable in respect of the purchase of the Goods. 6- The profit on a Supply of Eligible Used Goods is calculated as the Consideration for the Supply of the Eligible Used Goods by the Taxable Person, less the Consideration payable in respect of the purchase of the Eligible Used Goods. The profit does not include any expenses or other amounts incurred by the Taxable Person in respect of the Supply. 7- Tax is calculated on the profit in accordance with the method prescribed by Article forty-five of these Regulations. 8- In cases where the profit calculated under the sixth Paragraph of this Article in respect of any Supply is zero, or results in a negative amount, the value of that Supply by the Taxable Person is zero. 9- A Taxable Person must not deduct Input Tax in respect of any amount of Tax charged to it or included in the Consideration for the purchase of Eligible Used Goods. 10- Any Taxable Person who elects to use the profit margin method to calculate Tax on any Supply of Eligible Used Goods must retain a record of all Eligible Used Goods purchased and supplied by that Taxable Person, for the period stated in Article sixty-four of these Regulations and in addition to the records required to be retained by this Article. In respect of each Supply of Eligible Used Goods, the record must contain: a) all information detailed in the fifth Paragraph of this Article, b) the number of the Tax Invoice issued by the Taxable Person for the Supply of the Eligible Used Goods, c) the Consideration payable for the Supply of the Eligible Used Goods by the Taxable Person, d) name and address of the Customer, e) the profit calculated in accordance with the sixth Paragraph of this Article, f) VAT due on the profit. 11- In cases where the Taxable Person has not complied with any of the requirements of this Article in respect of any Supply of Used Goods, the profit margin method may not be used in respect of that Supply. In these cases, the Taxable Person must calculate Tax on the full Consideration for his Supply.

المادة 49

INPUT TAX DEDUCTION 1- Subject to the specific provisions of this Article, a Taxable Person may deduct Input Tax charged on Goods and services supplied to that Taxable Person, to the extent these are received in the course of carrying on an Economic Activity and constitute: a) Taxable Supplies including zero-rated Supplies, b) Internal Supplies, c) Supplies that would have been Taxable Supplies had they been made in the Kingdom. 2- A Taxable Person is entitled to deduct Input Tax incurred by that Person in respect of services supplied to that Person during the period of the six months before the effective date of registration, provided that: a) the services are purchased to be used for the purposes described in the first Paragraph of this Article, b) the services have not been supplied onwards, or used in full, by the Taxable Person prior to the registration date, c) the services are not of a type which is restricted from deduction, as prescribed in Article fifty of these Regulations. 3- A Taxable Person is entitled to deduct Input Tax incurred by that Person in respect of Goods supplied to that Person or Goods imported by that Person before the effective date of registration, provided that: a) the Goods are purchased or imported to be used for the purposes described in the first Paragraph of this Article, and where the Tax cannot be wholly attributed to such use, an apportionment is used, b) in cases where the Goods are Capital Assets, these have a positive book value at the date of registration, c) the Goods have not been supplied onwards by the Taxable Person, or used in full by the Taxable Person, prior to the registration date, d) the Goods are not of a type which is restricted from deduction, as prescribed in Article fifty of these Regulations. 4- In cases where Capital Assets are held at the date of registration, the maximum deductible Input Tax permitted under the third Paragraph of this Article shall be calculated as if the net book value, determined in accordance with the accounting practice of the Taxable Person, were the Consideration for the Supply. 5- Goods acquired by a Taxable Person which are lost, damaged or stolen must be...

المادة 53

TAX INVOICES 1- a) Each Taxable Person must issue or arrange for the issuance of a Tax Invoice containing –at a minimum- the information provided in Paragraph (5) of this Article in the following cases: 1. Where the Taxable Person makes a Taxable Supply of Goods or Services which he to another Taxable Person or to a non-taxable legal Person or to an establishment (sole proprietorship) or to any other entity established in accordance with the laws of the Kingdom 2. Where the Taxable Person receives Consideration in respect of and prior to making a Taxable Supply of Goods or Services to an another Taxable Person, to a Nonresident Legal Person, to an establishment (sole proprietorship) or to any other entity established in accordance with the laws of the Kingdom; 3. Intra-GCC Supplies and Exports; and 4. The Supply of zero-rated Service to a customer not residing in GCC Member State. b) In all cases set forth under Subparagraph (a) hereof, the Tax Invoice must be issued no later than the fifteenth day of the month following the month in which the Supply took place. c) Notwithstanding the provisions of this Paragraph (1), a Taxable Person may issue a summary Tax Invoice -in accordance with Paragraph (7) of this Article- in respect of the Supplies set forth in Subparagraph (a) of this Article the value of which is less than SAR 1,000. 2- Subject to the Authority's approval, a Taxable Customer may issue Tax Invoices on behalf of a Supply made by a Taxable Supplier provided that a prior agreement between such Supplier and Customer has been made to this effect; that the Tax Invoice state that it was issued by the Customer on behalf of the Supplier; and that the Supplier and Customer are registered with the Authority for VAT purposes. A Tax Invoice issued as per this Paragraph will be deemed to be issued by the Supplier. The agreement referred to in this Paragraph must include a recitation of the procedures required for the Tax Invoices to be approved by the Supplier on whose behalf they are issued and a certification by the Supplier that they will not issue invoices in respect of the Supplies for those Tax Invoices were issued. 3- Subject to the Authority's approval, a Taxable Person may issue Tax Invoices through a third-party provided that all obligations [legal requirements] set forth in the Law and these Regulations are satisfied. The Supplier shall be responsible for the accuracy of the information shown on the Tax Invoice and for reporting Output Tax on the supply. 4- In the events set forth in Paragraph (1) of this Article, a Taxable Person may issue a summary Tax Invoice that includes more than one separate supply of Goods or Services to the same Customer in a period not exceeding one calendar month; the summary Tax Invoice must contain –at a minimum- the information set forth in Paragraph (5) of this Article and must be issued no later than the fifteenth day of the month following the month for which the Tax Invoice pertains. 5- A Tax Invoice must include the following details in Arabic, in addition to any other language also shown on the Tax Invoice as a translation: a) the date of issue, b) a sequential number which uniquely identifies the Tax Invoice, c) the Tax Identification Number of the Supplier, d) in cases where the Customer is required to self-account for Tax on the Supply, the Customer's Tax Identification Number and a statement that the Customer must account for the Tax, e) the name and the address of the Supplier and of the Customer, f) the quantity and nature of the Goods supplied, or the scope and nature of the services rendered, g) the date on which the Supply took place, where this differs from the date of issue of the Tax Invoice, h) the taxable amount per rate or exemption, the unit price exclusive of VAT and any discounts or rebates if they are not included in the unit prices, i) the rate of Tax applied, j) the amount of Tax payable, shown in SAR, k) in the case where Tax is not charged at the basic rate, a narration explaining the Tax treatment applied to the supply, and l) in cases where the profit margin method for Eligible Used Goods is applied, reference to the fact that VAT is charged on the profit on those Eligible Used Goods. 6- Tax Invoices shall be issued in an electronic format in cases where this is prescribed in any regulations issued by the Minister of Finance or the Board of Directors surrounding the requirements and conditions for issue of electronic Invoices, provided these Regulations are in force as at the date of the Supply. 7- a) Every Taxable Person must issue a Simplified Tax Invoice containing –at a minimum- the information set forth in Paragraph (8) of this Article in any of the following cases: 1. the supply of Taxable Goods or Services made to a Person other than a Person referred to in Paragraph (1)(a) of this Article; and 2. the receipt of Consideration in respect and prior to the occurrence of a Taxable Supply of Goods or Services to a Person other than a Person referred to in Paragraph (1)(b) of this Article. b) In all cases referred to in Subparagraph (a) of this Paragraph, a Simplified Tax Invoice must be issued on the earliest of the date of the supply and the date of receipt of Consideration –in whole or in part-. c) Notwithstanding the provision of Subparagraph (b) of this Article, a Taxable Person may issue Simplified Tax Invoices in respect of the following Supplies no later than the fifteenth day of the month day following the month on which the Supply took place and provided that such Simplified Tax Invoices contain –at a minimum- the Customer's name, Customer's address, and the date the Supply took place in addition to the information set forth in Paragraph 8 of this Article: 1. The Supply of Financial Services made by banks, financial institutions, or insurance companies licensed by the competent authorities in the Kingdom; 2. Any other Supplies as approved by a decision of the Governor. d) A Taxable Person eligible for the exemptions related to the Supplies set forth in Subparagraph (c) hereof may issue a summary Simplified Tax Invoice containing separate Supplies of Goods or Services made by such Person to the same Customer within the same calendar month, provided that such summary Simplified Tax Invoice contain –at a minimum- the Customer's name, Customer's address, and the period to which the Supplies pertain, in addition to the information set forth in Paragraph 8 of this Article; such summary Simplified Tax Invoice must be issued no later than the fifteenth day of the month day following the calendar month to which the Supplies pertain. 8- A Simplified Tax Invoice must include the following details: a) the date of issue, b) the name, address and Tax Identification Number of the Supplier, c) a description of the Goods or services supplied, d) the Consideration payable for the Goods or services, e) the Tax payable or a statement that the Consideration is inclusive of Tax in respect of the Supply of the Goods or services. 9- The Authority's governor has the right to amend the details that must be provided in the invoices according to this article, and he has the right to specify any additional details that must be available in the invoices For the purposes of applying the provisions of the electronic billing regulation. 10- The Authority may, with proper justification and upon conducting the necessary analysis, suspend or revoke –in full or in part- electronic invoicing obligations on a certain group of Taxable Person or specific Taxable Person upon, and may accordingly issue decision to that effect at its discretion. 11- The term "Tax Invoice" shall mean -wherever it appears in these Regulations- invoices issued in accordance with any provision [Paragraphs] of this Article.

المادة 54

CREDIT AND DEBIT NOTES 1- In the event that one of the circumstances in the first Paragraph of Article Forty of these Regulations occurs after a Tax Invoice has been issued and the amount shown as Tax charged in that Tax Invoice exceeds the true value of the Supply, the Taxable Person who has made the Supply shall provide the Customer with a credit note. 2- In the event that one of the circumstances in the first Paragraph of Article Forty of these Regulations occurs after a Tax Invoice has been issued and the amount shown as Tax charged in that Tax Invoice is less than the true value of the Supply, the Taxable Person who has made the Supply shall provide the Customer with a debit note. 3- In cases other than those set forth in Paragraph (1) of Article Forty of these Regulations, a Taxable Person who issues a Tax Invoice and becomes aware of an error on the Tax Invoice in their information or that of the Customer, the Taxable Person may issue a debit or credit note –as the case may be- to the Customer correcting the erroneous information in that Tax Invoice, provided that both the Supplier and Customer retain a copy of the Tax Invoice and debit or credit note issued pursuant to this provision in order to satisfy their [respective] obligations under the Law and these Regulations. 4- A credit notes or debit note issued in accordance with this Article must contain all information required to be included in the corresponding Tax Invoice pursuant to the provisions of Article Fifty-Three of these Regulations that relate to the nature of that invoice. that pertain to the depending to Article reference to the sequential number of the Tax Invoice issued in respect of the initial Supply to which the credit notes or debit note relates. Such credit note or debit note shall also include a clear reference –as specified by the Authority- to previously issued Tax Invoice(s) related thereto. 5- A credit note or debit note should otherwise contain the discount information required by Article fifty-three of these Regulations to be shown on the corresponding Tax Invoice.

المادة 55

CONFIDENTIALITY OF INFORMATION 1- Employees of the Authority may only disclose Tax information concerning Taxpayers received in an official capacity in the situations described in the second, third or fourth Paragraphs of this Article. 2- Disclosure of Tax information may be made in cases where such disclosure is required by any court order, law or implementing regulations or other governing rules applicable in the Kingdom. 3- Disclosure of Tax information may be made by employees of the Authority where such disclosure is necessary for the exercise of the duties and powers vested in the Authority and subject to the following conditions: a) the disclosure is made to another employee of the Authority acting in their official capacity, or to the Customs Department, the General Audit Bureau, a tribunal or court, or a tax authority of a foreign country in accordance with any treaty or agreement to which the Kingdom is a party, b) the employee of the Authority is carrying out those powers on the instructions of the Authority and is authorized to do so, c) the disclosure of Tax information is not excessive compared to the purpose of the disclosure, having regard to the personal or commercial impact of the disclosure, d) the Tax information is not retained for longer than necessary for the purpose of the disclosure, e) the confidential information that is disclosed is stored in an adequate and protected matter, and takes all measures prescribed by the Authority against unlawful or unauthorized distribution, loss, destruction or damage of the confidential information, f) before the disclosure, the person to whom the disclosure is made, is made aware of the confidentiality of the Tax Information and of the confidentiality requirements stated in the Law. 4- Notwithstanding the other Paragraphs of this Article, Tax information concerning a Taxable Person may be disclosed to another Person without breaching the confidentiality requirements in the Law upon the Taxable Person's written and fully informed consent.

المادة 59

PAYMENT OF TAX 1- Payment of Tax due by a Taxable Person in respect of a Tax Period must be made at the latest by the last day of the month following the end of that Tax Period. 2- Payment of Tax by a Person in the case of an assessment issued by the Authority must be made before the date specified in the notification of the assessment. 3- Payment of Tax must be made to the designated bank account of the Authority. 4- The Person making payment must provide details of the Tax Identification Number of the Taxable Person and the Tax Period or Tax Periods to which the payment relates. 5- For each Taxable Person, the Authority shall keep a VAT account which records: a) VAT due by the Taxable Person in respect of each Tax Period, including penalties and other charges relating to that particular Tax Period, b) the ongoing balance in respect of the overall VAT due and refundable by that Taxable Person, including any general penalties or other amounts payable in relation to VAT. 6- Details of the balances of a Taxable Person's VAT account shall be made available electronically by the Authority for the Taxable Person to review. 7- When the Authority receives a payment from a Taxable Person, it will first be applied to the balance of the Tax Period to which the payment refers. Any excess balance will be applied to penalties, fines or charges owing from any previous Tax Period, and the remainder will then be applied to outstanding balances for other Tax Periods, starting from the oldest period with a balance payable. 8- The Authority may offset any VAT credit balance against any other taxes due by the Taxable Person. The Authority shall notify a Person where an offset of a credit balance is carried out.

المادة 60

EXTENSION OF TIME TO PAY TAX 1- The Authority may, if a Taxable Person presents evidence showing that he is unable to pay the Tax when due or showing that he would suffer hardship from payment thereof in a single payment, allow payment in installments of Tax and penalties, fines, or charges payable. 2- A request by a Taxable Person to make payment of Tax, penalties, fines or charges in installments must be made in writing to the Authority. Such request must identify the amounts due, the relevant Tax Periods in respect of which payments are due, and the reasons for inability to pay by the due date or dates. The request must include supporting evidence. 3- The Authority shall provide notification of acceptance or refusal to the Taxable Person within twenty (20) days from the date of receipt. 4- The notification of approval will prescribe the value and a due date for each installment, and the Tax Period or Tax Periods to which each installment relates. The Taxable Person must quote its Tax Identification Number and the Tax Period or Tax Periods with each installment payment. Collected amounts will be allocated in accordance with the seventh Paragraph of Article fifty-nine of these Regulations. 5- The due dates for all installments due in any approved payment arrangement must not span a period in excess of twelve months. 6- In cases where the Taxable Person does not pay two installments, or other cases where the Authority believes it necessary for protection of the public revenues of the Kingdom, the installment arrangement may be revoked by the Authority. Notification shall be provided to the Taxable Person upon revocation. In these cases, the Taxable Person will be required to make immediate payment of the remaining due balance. 7- The allowance of an extension of time to pay under this Article does not suspend liability of a Taxable Person to pay any penalty for delay levied pursuant to the Law and these Regulations for the period of the extension.

المادة 61

CURRENCY CONVERSION Where any relevant amount to which these Regulations apply is expressed in a currency other than riyal, the amount must be converted to riyal using the daily rate prescribed by the Saudi Central Bank on the date that the relevant Tax becomes due in accordance with the Agreement and the Law.

المادة 62

TAX RETURNS 1- The Tax Return of a Taxable Person must be filed by the Taxable Person or a person authorized to act on his behalf for each Tax Period with the Authority no later than the last day in the month following the end of the Tax Period to which the Tax Return relates. A Tax Return filed validly on behalf of a Taxable Person shall be considered that Taxable Person's self-assessment of Tax due for that Tax Period. The Authority shall have the right to issue an assessment based on its best estimate of the Tax properly due for the relevant Tax Period in cases where the Taxable Person has failed to file a Tax Return. The Taxable Person remains obligated to submit the outstanding Tax Return. 2- In addition to the information required under Article forty of these Regulations, the Authority may require in the form prescribed by it disclosure of the following information in respect of the Tax Period to which a Tax Return relates: a) the total value of all Supplies of Goods and services made by the Taxable Person subject to the basic rate and the zero-rate of Tax, and the total Output Tax on those Supplies; b) the total value of all Goods and services supplied to the Taxable Person, and the total deductible Input Tax; c) the total value of all Nominal Supplies of Goods and services; d) the total value of all Supplies of Goods and services to the Taxable Person where the Tax is payable by the Taxable Person under the Reverse Charge Mechanism; e) the total value of Internal Supplies made by the Taxable Person; f) the total value of Tax on imports reported through the Taxable Person's Tax Return; and the total Input Tax relating to all imports of Goods by the Taxable Person; g) the total value of Exempt Supplies made by the Taxable Person; h) the value of any other Supplies made by the Taxable Person; i) the value of any adjustments made to Input Tax in accordance with Articles fifty-one or fifty-two of these Regulations during that Tax Period; j) any correction of previous Tax Returns made through that Tax Return in accordance with Paragraph 2 of Article Sixty-three of these Regulations.

المادة 63

CORRECTION OF RETURNS 1- In cases where a Taxable Person becomes aware of an error or an incorrect amount in a filed Tax Return, or becomes aware of such facts which should have led it to be aware of such error or incorrect amount, which has resulted in the amount of Tax payable to the Authority being understated, that Person must notify the Authority within twenty (20) days of becoming aware of the error or incorrect amount, by filing a submission to correct the Tax Return save to the extent the third Paragraph of this Article applies and is complied with by the Taxable Person. 2- Without prejudice to Paragraph (4) of this Article, in cases where a Taxable Person becomes aware of an error or an incorrect amount in a filed Tax Return which has resulted in the amount of Tax payable to the Authority being overstated, the Taxable Person may correct that error by adjusting the Tax in any Tax Return filed subsequent to the discovery of such error. 3- Notwithstanding the requirements of the first Paragraph of this Article, if the understatement of Net Tax by the Taxable Person is less than five thousand (5,000) SAR, the Taxable Person may correct that error by adjusting the Net Tax in its next Tax Return. 4- No correction to any Tax Return relating to an overstatement of Tax in respect of a Tax Period may be made after a period of five (5) years has passed from the end of the calendar year in which the Tax Period takes place. 5- Any correction filed with the Authority must provide the following minimum information: a) the Tax Period or Tax Periods to which the Tax Returns being corrected relate, b) the amount of Output Tax and Input Tax being corrected in respect of each Tax Period, c) information explaining the reason for the error or incorrect information in the Tax Return.

المادة 64

EXAMINATION AND ASSESSMENT PROCEDURES 1- The Authority may make an assessment of the VAT obligations of a Person in respect of one or more Tax Periods. The Authority shall provide notification to the Taxable Person when it issues such an assessment. 2- An assessment issued by the Authority shall at a minimum show the Net Tax payable, the due date for payment, and the basis for calculation of the assessment. The assessment shall notify the Taxable Person of its rights to appeal the assessment. 3- Subject to the fourth Paragraph of this Article, the Authority may not issue or amend an assessment in respect of any Tax Period after a period of five (5) years has passed from the end of the calendar year in which the Tax Period falls. 4- In cases where any transaction is carried out with the intention of breaching the provisions of the Law and these Regulations, or in cases where a Person is required to register but fails to do so, the Authority may issue or amend assessments up to a period of twenty (20) years from the end of the calendar year in which the Tax Period falls. 5- An assessment issued by the Authority in cases where a Taxable Person has failed to file a Tax Return can be withdrawn after the filing of a completed Tax Return for that Tax Period by the Taxable Person or a person authorized to act on his behalf. 6- Taxpayers shall cooperate with an examination carried out by the Authority. The following conditions shall apply to examinations by the Authority: a) subject to Subparagraph (b) of this Paragraph, the examination shall be performed at the premises of the Taxable Person or the premises of the Authority pursuant to a notice issued by the Authority twenty (20) days before the first date of the examination, b) as an exception to Subparagraph (a) of this Paragraph, the Authority may conduct an examination without prior notice in cases where it has good reason to suspect violation of the Law or these Regulations or of a refusal of the Taxable Person to cooperate has occurred or is likely to occur; c) an examination at the Person's premises shall be carried out during working hours of the Taxable Person subject to the examination and the Taxable Person shall make available all the invoices, books, records and accounting documents which the Taxable Person is required to keep in accordance with the Law and these Regulations, which may be examined by the Authority on or off the premises; d) in cases where the Authority transfers invoices, books, records and accounting documents from the Taxable Person's premises, a receipt for the transferred documents shall be provided to the Taxable Person; e) the Authority, upon completion of the examination, shall return transferred documents to the Taxable Person within twenty (20) days from the end of the examination.