Article 10 of the Saudi Value Added Tax Law
المادة 10 من نظام ضريبة القيمة المضافة · الفصل الثالث: توريدات السلع والخدمات
The article refers to the Regulations to identify exempt supplies and zero-rated supplies, and the conditions and controls for them.
Official text (Arabic)
This article has not been amended since the law was issued.
تحدد اللائحة التوريدات المعفاة من الضريبة، والتوريدات الخاضعة للضريبة بنسبة الصفر في المائة، والشروط والضوابط اللازمة لذلك.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 10 explained in plain English
This article is the legal basis for two special categories of supplies in value added tax:
- Supplies exempt from the tax.
- Supplies subject to the tax at a rate of zero percent.
What does the article provide? The article names no specific good or service. It leaves three things to the Regulations: identifying the exempt supplies, identifying the zero-rated supplies, and setting the conditions and controls for each. Whether a particular product or service is exempt or zero-rated is therefore determined from the Regulations, not from this article.
An important distinction: the article lists the two categories separately: "supplies exempt from the tax" and "supplies subject to the tax at a rate of zero percent". They are not one and the same in the text. A zero-rated supply remains, in the words of the article, "subject to the tax" even though its rate is zero, whereas an exempt supply is exempt from it. The detailed effects of each are set by the Regulations.
This article comes among the provisions on supplies of goods and services, and is followed by Article 11, which refers to the Regulations the criteria for calculating the value of expected annual supplies.
Since benefiting from an exemption or zero rate is subject to conditions and controls set by the Regulations, a business should check that it meets them and, if in doubt, consult a lawyer specializing in tax.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 10 of the Saudi Value Added Tax Law
Which goods and services are exempt from VAT?
This article does not specify them. It refers to the Regulations to identify exempt supplies and their conditions and controls.
What is the difference between an exempt supply and a zero-rated supply?
The article lists them as two different categories: the first is exempt from the tax, and the second is subject to the tax at a rate of zero percent. The Regulations specify each one and its conditions.
Is the exemption automatic?
The article provides that the exemption and the zero rate have conditions and controls set by the Regulations, which must be met.
More articles on Exempt and Zero-Rated Supplies
- Article 2Amended by A/638
The article imposes value added tax on the import and supply of goods and services at a basic rate of 15%, unless an exemption or zero rate applies.
1- دون إخلال بما ورد في الفقرة (2) من هذه المادة، تفرض الضريبة على استيراد وتوريد السلع والخدمات، وفقاً للأحكام المنصوص عليها في الاتفاقية والنظام واللائحة. 2-
- Article 6
The article refers to the Regulations to set the conditions and controls for applying the deemed supply provisions in the GCC Agreement.
تحدد اللائحة الشروط والضوابط اللازمة لتطبيق الأحكام ذات الصلة بالتوريد المفترض التي تنص عليها الاتفاقية.
- Article 7
The article refers to the Regulations to set the conditions and controls for a taxable person transferring goods from its assets between the Kingdom and any member state.
تحدد اللائحة الشروط والضوابط المتعلقة بنقل الخاضع للضريبة سلعاً تشكل جزءاً من أصوله من المملكة إلى أي دولة عضو أو العكس.
- Article 8
The article refers to the Regulations to identify the transactions in which the supply of goods and services is outside the scope of value added tax.
تحدد اللائحة المعاملات التي يكون فيها توريد السلع والخدمات خارج نطاق الضريبة.
- Article 9
The article treats a taxable person who supplies or receives goods or services in its own name on behalf of another as if it had supplied or received them for itself.
في حال قيام الخاضع للضريبة ـ باسمه الخاص ـ بتوريد أو تلقي سلع أو خدمات نيابةً عن شخص آخر، فإنه يعامل - لأغراض تطبيق النظام واللائحة - باعتباره قد قام بتوريد أو
- Article 13
The article refers to the Regulations the conditions and controls for determining the place of supply of goods and services, in accordance with the GCC Agreement.
تحدد اللائحة الشروط والضوابط اللازمة لتعيين مكان توريد السلع والخدمات، وفقاً لأحكام الاتفاقية.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.