Second Version | May 2026

Article 2, Taxable Persons required or eligible to register in the Kingdom, Implementing Regulations (3) Article 1, Definitions, Unified VAT Agreement (4) Article 14, Taxable Supplies in the Kingdom, Implementing Regulations (5) Article 1, Definitions, Unified VAT Agreement 3. Economic Activity The Economic Activity definition contains two important limbs: 3.1. An Activity Being Conducted in an Ongoing and Regular Manner Continuity and regularity of a person in making or receiving supplies are one of the key elements for the carrying on of an economic activity. Other activities carried out by a person other than the making of supplies may be regarded as an indicator of the carrying on of an economic activity in an ongoing and regular manner (such as preparatory activities). Generally, the concept of ‘ongoing and regular’ will depend on the nature of the business or activity carried out by the taxable person, in addition to other factors. The evaluation of whether a person carries on an economic activity will be done with regard to the acts that the person does relating to the making of supplies. The factors that can be considered to determine whether a person is carrying on an economic activity in an ongoing and regular manner will include, by way of example and not exclusively: • Whether the person has a commercial registration for the carrying on of the activity, or similar licenses (or if he is required to obtain a commercial registration or a license, under the laws in force), or • Carrying on activities preparatory to an economic activity, or • The number of supplies made by the person, or • whether the person promotes his products or services to the public in such a manner that it appears to the public that he is carrying on a separate economic activity, and • Any other relevant act These factors serve as non-exhaustive, indicative markers that an individual is conducting an economic activity on a continuous and regular basis or intends to conduct an economic activity in such a manner. Once-for-all transactions, like the sale of a person’s personal belongings by a natural person, are not considered economic activities for VAT purposes unless they are carried out as a component of more extensive activities. Deliveries made in a different way, however, can be part of an