The authority stated that the amendment includes changing the date of supply and VAT entitlement for all supplies of goods or services provided by the establishments contracting with government agencies, in accordance with the new government tenders and procurement law.
Thus, the tax entitlement date will be the date of issuing the payment order for the claim related to taxable supplies, in accordance with the procedures of the tender law or the date of receiving the consideration for the supply or part of it, whichever is earlier. This aims to ensure that the establishment receives the supply tax before paying it to the authority and declaring it in its periodic reports.
Source SaudiGazette
