This ZATCA guideline (Issue 2, May 2026) clarifies the Value Added Tax treatment of electronic commerce in the Kingdom of Saudi Arabia. It explains the forms of e-commerce, the mandatory SAR 375,000 and voluntary SAR 187,500 registration thresholds, and the obligations of non-resident suppliers under the Reverse Charge Mechanism. It addresses supplies made via electronic interfaces, portals and marketplaces, distinguishing declared from undisclosed agents, and details place of supply, supply date, tax invoicing and the 15% rate for goods and electronic services. It also covers sharing economy models such as ride-hailing and food delivery, vouchers, input tax deduction, VAT returns, record keeping and penalties.
Guideline on Electronic Commerce under VAT Provisions
Issue 2 | May 2026
Contents
1. Introduction
1.1. Implementation of Value Added Tax in the Kingdom of Saudi Arabia
1.2. The Zakat, Tax and Customs Authority
1.3. About this Guideline
2. Definition of Key Terms Used in this Guideline
3. Overview of Electronic Commerce
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