Value Added Tax (VAT) is imposed at the place where goods or services are consumed, with the place of supply determining whether VAT will be levied or not.

VAT should not be imposed on any goods or services that will be consumed or enjoyed outside the Kingdom of Saudi Arabia, in line with the principles of territoriality and consumption.

The tax is imposed on supplies of goods and services subject to tax that are supplied within the Kingdom by persons subject to tax. If the customer consumes or enjoys these services or goods outside the Kingdom, they may request a refund of the tax incurred from the authority.