Zakat, Tax and Customs Authority (ZATCA) released draft legislation proposing an addition to Article 33 of the VAT regulations, which includes a zero VAT rate for "exporting" services.

The following amendment has been proposed by ZATCA to Article 33 of the VAT Implementing Regulations:

3- Notwithstanding the second paragraph of this article, the supply of services to a non-resident customer in any of the member states is subject to the zero rate in cases where the supply facilitates the supply of taxable services by that non-resident customer to a person in the Kingdom.

Stakeholders and taxpayers were encouraged to share feedback on this proposal no later than 11 November 2022.