The rules regarding the place of supply determine which country has the right to apply Value Added Tax (VAT) on the supply of financial services. If VAT is due (i.e., the supply is not exempt), these rules also determine who is responsible for reporting VAT.
Residence of the Supplier or Customer:
In many cases, the rules regarding the place of supply refer to the residence of the supplier and the customer.
The term “resident” includes a company established under the laws of the Kingdom of Saudi Arabia or if its actual management center is in the Kingdom of Saudi Arabia. If a company or any other legal entity is established outside the Kingdom of Saudi Arabia and has a place of business or any other form of fixed establishment in the Kingdom of Saudi Arabia, then that company is considered a resident within the Kingdom of Saudi Arabia.