Under the expected transitional provisions, if a supply of goods or services takes place on or after 1 July 2020, any invoice issued for any consideration received before 1 July 2020 may be considered under the 5% tax bracket for the purposes of calculating the time and tax of supply for VAT, and consequently, the supply will be subject to 15% VAT.
If an invoice is issued before 1 July 2020 for a supply that is to be performed after 1 July 2020, without including the 15% VAT applicable to the goods or services being supplied under that invoice, the supplier must issue an additional invoice specifying the additional amount of (15%-5%) VAT.
Source: gccfintax.com
Latest Posts in "Saudi Arabia"
- Briefing document: Saudi Arabia FATOORAH E-invoicing Compliance
- Saudi Arabia Launches VAT Refund Service for Tourists to Boost Economic Diversification and Tourism
- Saudi Arabia’s ZATCA Phase 23 E-Invoicing: Key Compliance Steps for 2025 Roll-Out
- Saudi Arabia Introduces VAT Refund Program to Boost Tourism and Shopping Experience
- Saudi Arabia Introduces VAT Refund for Tourists, GCC Nationals on Purchases Over SAR 500
