1Issue 2 | Mary 2026

Electronic Marketplace or Platform Acting on Behalf of a Non-Resident Supplier In cases where the supply of goods or services is facilitated electronically in the Kingdom through an electronic platform or marketplace acting as an intermediary for a non-resident Supplier or Suppliers, the electronic platform or marketplace shall be deemed to have purchased the services from the non-resident Suppliers on its own account and to have resupplied them in its own name and on its own account to the Customer benefiting from those services. The electronic platform or marketplace shall be responsible for collecting and remitting VAT on all Taxable Supplies carried out in the Kingdom through it. If the electronic intermediary operates on behalf of a non-resident Supplier in the Kingdom, special rules shall apply regarding the provision of electronic services in the Kingdom. In this case, the platform or marketplace shall be deemed to act in its own name as a Principal, unless all of the following conditions apply: • If it is explicitly stated that the non-resident Supplier or Suppliers are the parties supplying the goods or services in the Kingdom during the supply transaction through the electronic platform or marketplace to the Customer, and this is reflected in the contractual arrangements between all parties to the transaction as well as in the tax invoice and receipt issued to the Customer for the payment of the consideration. • If the operator of the electronic platform or marketplace acts on behalf of a non-resident Supplier in the Kingdom, it shall be considered to have purchased the services from the non- resident Supplier and to have made a separate supply of the same services to a Customer in the Kingdom. Electronic platform, gateway, or marketplace acting on behalf of a Resident Supplier not registered for VAT purposes: In cases where the supply of goods or services is facilitated electronically in the Kingdom through an electronic platform or marketplace acting as an intermediary for one or more Resident Suppliers who are not registered for VAT, the platform or marketplace shall be considered to have purchased the services from the non-registered Resident Suppliers on its own account and to have resupplied them in its own name and on its own account to the Customer benefiting from such goods or services. The electronic platform or marketplace shall be responsible for collecting and remitting VAT on the Taxable Supplies carried out in the Kingdom through them, unless all of the following apply: a. It is explicitly stated that the Resident Supplier(s) not registered for VAT are the ones making the supply in the Kingdom during the transaction facilitated via the electronic platform or marketplace to the Customer, and this is reflected in the contractual arrangements between all parties involved, as well as in the tax invoice and receipt issued to the Customer regarding the payment. b. An independent and direct contractual relationship is established between the Resident Supplier(s) not registered for VAT and the Customer benefiting from the supply, in accordance with the applicable laws in the Kingdom, and the Supplier(s) set all terms and conditions related to the supply to the Customer. c. The electronic platform or marketplace does not set the terms and conditions for the supply of the services provided through it, does not determine the consideration for such services, does not charge the Customers that consideration, and does not collect payment, handle Customer complaints, or provide any offers or compensation to the Customers in relation to the supply.