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V1327-19 7 June 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · lugar de realización

VAT liability for services in Saudi Arabia cannot be determined without knowing their nature

A company has requested clarification on whether services performed jointly with another entity in Saudi Arabia are subject to VAT and where they are deemed to take place. The DGT has stated that, as the specific type of service was not provided, it cannot issue a definitive ruling.

The question raised

Place of supply of the services consulted and whether they are subject to Value Added Tax.

The DGT's ruling

The DGT cannot specify the place of supply or the liability for VAT because the applicant has not specified the nature of the services. It is noted that services related to real estate are considered to be supplied in the place where such property is located, provided they have a sufficiently direct link to them.

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