One of the main changes is in relation to tax representatives, including that instead of being obligated to appoint a representative, non-resident taxable suppliers have the option to appoint a representative. If a representative is not appointed, however, a non-resident supplier is required to provide a guarantee for an amount determined by the GAZT in order to register for VAT. In addition, if a representative is not appointed, a non-resident supplier is required to appoint a third-party for the storage and maintenance of their VAT-related records in Saudi Arabia.
Another important change in the regulations is in relation to the conditions for zero-rating of exported services. This includes that zero-rating will not apply for services where the benefit of the service is received directly by the customer or any other person in the GCC and the taxable person is not entitled to recover the input tax on that supply.
Lastly, the amended regulations include that a GCC country implementing VAT will not be treated as a GCC country for Saudi VAT purposes, unless such country implements an electronic services system.