Article 7 of the Saudi Value Added Tax Law
المادة 7 من نظام ضريبة القيمة المضافة · الفصل الثالث: توريدات السلع والخدمات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
تحدد اللائحة الشروط والضوابط المتعلقة بنقل الخاضع للضريبة سلعاً تشكل جزءاً من أصوله من المملكة إلى أي دولة عضو أو العكس.
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 7 explained in plain English
This article deals with a special case: a taxable person transfers goods that form part of its own assets from the Kingdom to a member state, or from a member state to the Kingdom.
In this case there is not necessarily another buyer; the goods move within the same person's property, but their crossing between member states raises the question of tax treatment.
What does the article provide?
- The article sets no detailed rule. It refers to the Regulations to set the conditions and controls for this transfer.
- "Member state" means a member state of the GCC Agreement, since Article 1 provides that terms not defined in the Law take their meaning from the Agreement.
This article comes after Article 6 on deemed supply and before Article 8, which refers to the Regulations the identification of transactions outside the scope of the tax; all of them leave the details of application to the Regulations.
In practice, a business that moves equipment or goods it owns between the Kingdom and a Gulf state should refer to the Regulations to find the consequences of the transfer, and, where needed, consult a lawyer specializing in tax or international trade, because the text itself does not say whether the transfer attracts tax or not.
Practical example
A contracting company in Khobar that is registered for the tax wanted to move a crane it owns to one of its projects in a GCC member state. The article alone does not say whether this transfer is a taxable supply; it refers to the Regulations. The company therefore reviews the conditions and controls of the Regulations before moving the crane.
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 7 of the Saudi Value Added Tax Law
Is moving a company's goods to another Gulf state subject to tax?
The article does not settle this itself. It refers to the Regulations to set the conditions and controls for a taxable person transferring goods from its assets to a member state or the reverse.
Does the article cover transfers from a Gulf state to the Kingdom?
Yes, the article covers transfers from the Kingdom to any member state or the reverse.
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 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 10
The article refers to the Regulations to identify exempt supplies and zero-rated supplies, and the conditions and controls for them.
تحدد اللائحة التوريدات المعفاة من الضريبة، والتوريدات الخاضعة للضريبة بنسبة الصفر في المائة، والشروط والضوابط اللازمة لذلك.
- 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.