1Fourth Version | May 2026

is limited to specific cases and is subject to certain exceptions stipulated in this regard(2). This guideline provides guidance to taxable persons who supply services to non-GCC resident customers, and as a transitional measure to all non-Kingdom residents. A diagram is added to the appendix included in this document, with the aim of giving a clarification of how to apply the relevant concepts to all cases. 2. Key Terms “Customer”: is a defined term for VAT purposes, being: “A Person who receives Goods or Services”(3). Additional context on the identification of the customer is provided in Chapter 4 of this Guideline. “GCC Territory”: Is a defined term for VAT purposes, being: “All territories of the GCC Member States.”(4) For the purpose of this guideline, this must be read in conjunction with transitional provisions requiring that Member States of the Gulf Cooperation Council have introduced VAT and have an Electronic Services System in place with the KSA(5). “Member State”: Unless the context dictates otherwise, references in this Guideline to a “Member State” refer to a Gulf Cooperation Council State which has introduced VAT and has an Electronic Services System in place with the KSA(6). “Non-GCC Resident”: For the purposes of this guideline, this term refers to any Person that is not Resident of any Member State. This means the person cannot have any fixed establishment or Place of Residence in any Member State, even if the Person is also Resident in a non-GCC country. “Place of Residence”: Is a defined term for VAT purposes, being: “The location of Place of Business or any other type of Fixed Establishment. In the case of a natural person, if he does not have a Place of Business or Fixed Establishment, it will be his usual place of residence. If a Person has a Place of Residence in more than one State, the place of residence will be considered to be in the place most closely connected with the supply.(7)” In practice, this means that a residence of a legal person can be created by: Please note that these exceptions only apply to subjecting services provided to non-GCC residents to the zero rate. (3) Article 1, Definitions, Unified VAT Agreement (4) Article 1, Definitions, Unified VAT Agreement (5) Article 79, Transitional provisions, Implementing Regulations (6) Article 79, Transitional provisions, Implementing Regulations