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ZATCA proposes changes to VAT defense exemption

In a public consultation recently launched, ZATCA is proposing to change Article 36 of the KSA IR.

The proposed unofficial high-level translation of the relevant article reads as follows:

“1.   “VAT will be applicable at the rate of 0% to the supply of eligible military goods to the government’s armed forces and internal security forces and their sectors, which is carried out by a taxable person who is registered with the Authority and licensed in the field of military…..

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