|Update:||Compliance Alert - ZATCA proposes an amendment to the VAT regulations|
On 12 October 2022, ZATCA published a proposed amendment to the VAT regulations that are currently subject to public consultations on its platform Istitla until 11 November 2022.
The proposed amendment mainly impacts article (33) of the VAT Regulations in terms of the conditions for the zero-rating for exported services.
It suggests adding a new paragraph to the article (33) stating that “without prejudice to the second paragraph of this article, the supply of the services to a non-resident client in any of the GCC member states is subject to the zero-rate treatment in cases of the supply of taxable services by that non-resident client to a person resident in the Kingdom”.
Pagero will notify its stakeholders about the consultations’ outcome and the final version of the amended law, once it is official.