Input VAT in Real Estate

You can deduct input in the following cases:

• VAT is charged on materials, sub-contractors or other suppliers in the monthly or quarterly period in which it is incurred
• Proof of taxable invoice with evidence of input VAT paid approved by the ZATCA

You cannot deduct input VAT in the following cases:

• VAT exempted activities (in residential real estate)
• Non-economic activities (like entertainment and motor vehicles)