Do I charge sales tax for services to Saudi Arabia?

Question

Hi,

I am quoting for a job in Saudi Arabia and need to find out if I should charge sales tax, how much it is and whether or not the UK has a treaty with Saudi Arabia.

Any advice gratefully received.

Hugh

Answer

Hi there Hugh,

In short I think the answers will be no (pretty sure VAT would be zero-rated) and no.

Links included should provide credible sources of information to back up my reasoning as to why! Hope this can in some way help you on your way.

They don’t currently appear as a ‘preference’ country under VAT Notice 827 (link 4 of 5), although, having said that, I would have thought they will need a Certificate of Origin. If they need an Arab Certificate of Origin this could really rack up your costs and so before quoting, I would just make sure you ask them to specify exactly what documentation that they require beforehand so that they can be accounted for in any quotation. And don’t forget to include a cost for couriering any original documents out to them too!

VAT: exports, dispatches and supplying goods abroad; Specifically section ‘VAT on exports to non-EU countries’

https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad#proof-of-export

VAT Notice 703 (export of goods from the UK); Specifically section 3

https://www.gov.uk/government/publications/vat-notice-703-export-of-goods-from-the-uk/vat-notice-703-export-of-goods-from-the-uk#conditions-and-time-limits-for-zero-rating

Doing business in Saudi Arabia: Saudi Arabia trade and export guide

https://www.gov.uk/government/publications/exporting-to-saudi-arabia/doing-business-in-saudi-arabia-saudi-arabia-trade-and-export-guide#saudi-arabia-export-overview

VAT Notice 827 – European Community preferences – export procedures (section 1.4 and 1.5)

https://www.gov.uk/government/publications/notice-827-european-community-preferences-export-procedures/notice-827-european-community-preferences-export-procedures#introduction

Arab C of O:

http://www.chamber-international.com/exporting-chamber-international/documentation-for-export-and-import/certificates-of-origin/certificate-of-origin-arab-british/

Kind regards,

Simon.

Answer

Thanks Simon,
my account got back to me today as well and confirmed that it is excluded from the return. I should have mentioned in the OP that I’m supplying a service so there are no tangible goods to be imported into the country.

regards, Hugh

Answer

Haha no worries! I have an avid interest in such subjects so sadly enjoyed in the research in any case.

Best of luck with everything!

Simon.

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