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Frequently Asked Questions on VAT

Last updated on 10 October, 2018


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What is an out-of-scope supply?

Out-of-scope supplies are those supplies that are exchanged between an overseas or unregistered supplier and an overseas buyer. VAT is not applicable to such scenarios.

There are three situations when a supply is classified as out-of-scope: 

  • The supply is made by a non-taxable person.

  • The supply is made outside of KSA.

  • The supply is for another department within one business, or for an event with no economic benefit.

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