Export of services zero-rated

The situation

Services supplied to a non-GCC customer can be zero-rated if conditions in Article 33 of the Regulations are met. The 2025 amendments changed some exceptions.

The law

• VAT Implementing Regulations as amended by ZATCA Board Resolution 01-06-24 (Gazette 18 April 2025): Changes to VAT groups, nominal supplies, credit notes, refunds, marketplaces and input tax

What it means for you

Zero-rating fails where the service is enjoyed in Saudi Arabia or goes to a related person in a GCC state who cannot fully recover VAT. Keep the contract, customer details and proof of payment from abroad.

What to do

1. Check customer location and benefit.
2. Keep evidence.
3. Report as zero-rated.

Related

• Late VAT payment penalty calculation
• Nil VAT return
• Credit note timing after the 2025 change
• Unpaid supplier invoice after 12 months
• Transferring the business and VAT
• Input VAT on staff entertainment and hotels