Freelancer billing clients outside the Kingdom
Most of my clients are abroad. How does VAT work if I am registered?
The situation
Services to non-GCC customers can be zero-rated if the conditions in Article 33 of the VAT Implementing 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 if the service is used in Saudi Arabia. Keep contracts showing the customer's location and proof of foreign payment. Zero-rated sales still count toward the VAT threshold.
What to do
- Check where the client uses the service.
- Keep contracts and payment proof.
- Report as zero-rated.
We can do this for youFreelancers in Saudi Arabia: freelance document for Saudis, legal routes for expats, VAT and tax: SAR 1,500