1Issue 2 | Mary 2026

What is Electronic Commerce? Electronic Commerce refers to the process of buying and selling goods or services via a website, electronic platform, social media store, or application, and the transfer of money and data to complete the sale. Electronic portals and interfaces refer to a website, Electronic Marketplace, forum, or similar application that facilitates the sale of goods or services from a Supplier to a Customer and allows the transaction to be completed through it. The interface or portal acts as an Agent or intermediary. 3.1.1 Forms of Electronic Commerce The common types of supplies in the context of Electronic Commerce include: y Business-to-Consumer (B2C) Supplies: Supplies from a person registered for VAT purposes to an individual or business not registered for VAT purposes. y Business-to-Business (B2B) Supplies: Supplies from a person registered for VAT purposes to another person registered for VAT purposes. y Business-to-Business-to-Consumer (B2B2C) Supplies: A combination of B2B and B2C supplies, where businesses sell their products to other businesses, which in turn sell them to consumers. This model consists of three parties: the first business (product origin), the (12) Article 1, Definitions, Unified Agreement for VAT (13) Article 2, Persons Subject to Tax Obligations or Eligible for Registration in the Kingdom, Implementing Regulations of the VAT (14) Article 1, Definitions, Unified Agreement for VAT (15) Article 1, Definitions, Unified Agreement for VAT intermediary, and the end-user. y Direct-to-Consumer (D2C) Supplies: Direct sales by a brand to the end Customer without the involvement of a retailer, distributor, or wholesaler. Subscription models are the most common in D2C supplies, with sales conducted via social media platforms such as «Instagram», «Facebook», «Snapchat», and others. y Consumer-to-Consumer (C2C) Supplies: The sale of a good or service from one consumer to another, conducted through electronic platforms. y Consumer-to-Business (C2B) Supplies: This occurs when an individual sells their services or products to a business. This model includes influencers who promote a product (to generate interest in the service or product), photographers, consultants, freelance writers, and similar providers. 3.1.2 Examples of Common Supplies y Sale of Goods/Physical Products: Offering a tangible product that can be shipped and marketed online, which can be sold through an Electronic Commerce store or via a third-party website. y Sale of Services: Businesses use a website or application as a sales tool for the services they provide. y This also includes services that are sold (and delivered) online, such as, by way of example, not limitation, marketing services, travel, and online entertainment services. y Sale of Digital Content: Product sales can be divided into two categories: ƒ Downloadable materials (e.g., e-books) ƒ Subscriptions and memberships to websites or electronic platforms y Transportation Services Delivered via an Application or Electronic Platform (“On-Demand Transportation Services”) 3.2 Electronic Commerce and Registration Requirements Economic activity may be carried out by both natural and legal persons. The Authority considers a person who regularly supplies goods or services to be engaged in an Economic Activity. All persons engaged in an Economic Activity and who register for VAT purposes shall be issued a tax identification number by the Authority(16). (16) Article 53, Tax Identification Number, Unified Agreement for VAT