How do I determine the place of supply for electronic services and telecommunications?

The rules for determining the place of supply have been agreed upon at the level of the Gulf Cooperation Council (GCC) countries through the Unified VAT Agreement. This agreement clarifies the country that should apply VAT in cases of cross-border transactions (where goods move from one country to another, or where the supplier and the customer are residents of different countries).
VAT is levied in the Kingdom of Saudi Arabia on transactions that occur within the Kingdom for VAT purposes. Generally, VAT is applied to transactions where the place of supply is in the Kingdom either at a rate of 15% or 0%. Transactions where the place of supply is outside the Kingdom are not subject to VAT in Saudi Arabia.