1Issue 2 | Mary 2026

Special Cases Presumed supplies for VAT purposes: The general rule for presumed supplies provides that goods and services supplied by the Taxable Person without receiving any consideration (from any person) give rise to a presumed supply by that Taxable Person(26). However, the presumed supply is subject to certain exceptions provided that sufficient evidence is presented for verification: • Input Tax related to the supply has not been previously deducted, as it was considered outside the scope of the Economic Activity. • Gifts and samples have been provided to Customers in the context of promoting the Economic Activity, provided that the market value per recipient does not exceed SAR 200 per calendar year, and the total value of supplies does not exceed SAR 50,000 per calendar year. • Supplies have been provided to employees in the context of the Economic Activity, provided that the market value per recipient does not exceed SAR 200 per calendar year, and the total value of supplies does not exceed SAR 50,000 per calendar year. • Goods have been disposed of due to damage. It is possible that the supply may include multiple and diverse goods or services provided by the Supplier to the Customer. In many cases, each good or service has an individual value, and these values of the goods or services are added together to calculate the total supply value and the total consideration due. Notwithstanding the foregoing, there are other cases where multiple items (such as multiple goods or services, or any combination of goods and services) are sold for a single price. In some cases, a good or service may be described as “free” for promotional purposes; however, this may not reflect the commercial reality. For example, goods or services may be provided together as a secondary part of another principal supply, which is the main objective for the Customer. For instance, “free delivery” may constitute a secondary component of the sale of an expensive piece of furniture. In such a case, the free good or service does not constitute a (25) Article 41, Customer Obliged to Pay Tax under the Reverse Charge Mechanism, Unified VAT Agreement (26) Article 8, Presumed Supply, Unified VAT Agreement separate supply without consideration in itself. Accordingly, the Supplier is not considered to be making a presumed supply. If the facts indicate that there is no separate supply for delivery services and that the Supplier is making a single supply of the goods delivered to the Customer. Example 5: A website sells natural honey for SAR 200 per jar and special wooden honey spoons for SAR 50 per spoon. The website offered the following promotional deal: “With the purchase of any jar of honey, you receive a free wooden spoon.” When a Customer purchases from the website and benefits from the promotional offer for SAR 200 (including the honey and the wooden spoon), the website must account for VAT on the SAR 200 only, which equals SAR 30. The sale of the wooden spoon is not considered a presumed supply because it is linked to another supply for which consideration was received. Example 6: A website sells natural honey for SAR 200 per jar. The website offered a promotional campaign through a social media influencer as follows: “Participate in the draw, and winners will receive a free jar of honey.” When a Customer wins the draw and receives the product, the website must account for VAT amounting to SAR 30 for each jar of honey supplied for free, due to the absence of consideration for this supply as stipulated in