| Update: | Compliance Alert - ZATCA releases a VAT Guideline for Electronic Contracts |
| Date: | 2022-09-21 |
Earlier this month, the Zakat, Tax, and Customs Authority ZATCA published a VAT Guideline for Electronic Contracts that provides clarifications regarding VAT consequences and measures when the buyer and the supplier are utilizing electronic contracts.
One of the key principles highlighted is that the VAT treatment of the supplies made under electronic contracts shall be treated identically to the supplies made by paper contracts.
Furthermore, the eligibility to deduct Input VAT shall not be impacted by the format of the contract, under which supplies were sold.
The full details can be found in the guideline which is available in English and Arabic versions.