GTL Summary:

Document Type: IR - Implementing Regulations
Law: Value Added Tax Law
Decision Number: 3839-article-20
Year: 2016
Country: 🇸🇦 KSA
Official Name: Article 20 - Date of Supply & Tax Due Date in Specific Circumstances
Last updated at: 2025-11-27 14:38:44 UTC

Chapter 3 - Supplies of Goods and Services

Article 20 - Date of Supply & Tax Due Date in Specific Circumstances [32][33]

  1. In cases where services are supplied on a continuous basis and the agreement or contract relating to the supply stipulates payment at specific intervals on specific dates, resulting in the issuance of invoices on a continuous basis, the date of supply shall be the date on which the tax becomes due and payable, which shall be the date of payment, the actual date of payment, or the date of issuance of the invoice, whichever is earlier, at least once every twelve (12) consecutive months.[34]

  2. In all other cases where supplies of goods or services are made on a continuous basis, thereafter a separate supply shall be deemed to have been made and shall be taxable from the date of issue of the invoice or the date of payment, whichever is earlier, to the extent of the value of the invoice or payment.

  3. In the event that no payment is received or no invoice is issued for the ongoing supply of goods or services by the taxable person, the supply shall be deemed to have taken place twelve months after the date on which the supply of goods or services commenced, whichever is later of the following two dates:

    1. the date of commencement of the supply of goods or services,

    2. the earlier date on which the supply took place pursuant to the issuance of an invoice or payment.

  4. After the supply of oil, gas, water, or electricity through a distribution network, which is not done on a continuous basis, it is deemed to have occurred and is taxable on the earlier of the following two dates:

    1. the date of issuance of the invoice by the supplier for those goods,

    2. the date of receipt of payment by the supplier for those goods.

  5. The deemed supply resulting from the cessation of economic activity of the taxable person shall be deemed to have occurred and to be taxable on the date of cessation of economic activity or on the date of cancellation of registration of that specific person in accordance with the Law and these regulations.

  6. A deemed supply arising as a result of the cessation of the economic activity of a taxable person, or due to the taxable person no longer being eligible for registration, shall be considered to have occurred, and tax shall become due on the earlier of: (i) the date of cessation of the economic activity; or (ii) the date of cancellation of that person’s registration.[35][36]

Footnotes

[32] Paragraph (6) was added to Article 20 pursuant to Board of Directors' Resolution No. (2-7-20) dated 12 Sha'ban 1441H (corresponding to 5 April 2020G), and amended pursuant to Board of Directors' Resolution No. (1-5-20) dated 14 Safar 1442H (corresponding to 1 October 2020G).

[33] The title of the Article was amended pursuant to the decision of the Board of Directors of the Zakat, Tax and Customs Authority No. (06-02-21) dated 26 Safar 1443 AH, corresponding to 3 October 2021. Prior to the amendment, the title read as follows:
'Date of supply in specific circumstances'

[34] Paragraphs (1–5) were amended and a new paragraph (6) was added pursuant to the decision of the Board of Directors of the Zakat, Tax and Customs Authority No. (06-02-21) dated 26 Safar 1443 AH, corresponding to 3 October 2021.
Prior to the amendment, the Article read as follows:

  1. In cases where goods or services are supplied and the invoice or agreement between the supplier and customer provides for periodic instalments, each instalment shall be treated as a separate supply taking place on the earlier of the due date of the instalment or the actual date of payment.

  2. In all other cases of continuous supplies of goods or services, the supply shall be deemed to occur and tax shall become due on the earlier of the date of issuance of the invoice or the date of payment.

  3. In all other cases where supplies of goods or services are made on a continuous basis, each supply shall be treated as a separate supply and shall become taxable on the earlier of the date of issuance of the invoice or the date of payment, to the extent of the value of the invoice or the payment.

  4. The supply of oil, gas, water or electricity through a distribution network that does not occur on a continuous basis shall be deemed to have taken place on the earlier of (i) the date of issuance of the invoice or (ii) the date of receipt of payment.

  5. A deemed supply arising from the cessation of a taxable person's economic activity shall be considered to occur on the date of cessation of the activity or on the date of cancellation of registration, whichever is earlier.

[35] This paragraph was amended pursuant to Zakat, Tax and Customs Authority Board of Directors' Resolution No. (01-24-06) dated 17 Jumada Al-Awwal 1446H (corresponding to 19 November 2024G).
Prior to the amendment, the Article read as follows:

'The deemed supply resulting from the cessation of the economic activity of a taxable person shall be considered to have occurred, and tax shall become due on the date of cancellation of the registration of that person, as determined in accordance with the Law and these Regulations.'

[36] The legislative history of this Article is given below:

  1. The following paragraph was inserted by Board of Directors' Decision of the General Authority of Zakat and Tax No. (2-7-20), dated 12 Sha'bān 1441H (corresponding to 5 April 2020):
    'The date of supply for real estate for which ownership is transferred through the competent authority, in accordance with the procedures of the special registration mechanism provided under Article 9 of these Regulations, shall be the date on which the ownership transfer procedures are completed with the competent authority.'

  2. The above paragraph was deleted by Board of Directors' Decision of the General Authority of Zakat and Tax No. (1-5-20), dated 14 Ṣafar 1442H (corresponding to 1 October 2020).

  3. The following paragraph was inserted by Board of Directors' Decision of the General Authority of Zakat and Tax No. (06-02-21), dated 26 Ṣafar 1443H (corresponding to 3 October 2021):
    'The deemed supply resulting from the cessation of the economic activity of a taxable person shall be considered to have occurred, and tax shall become due on the date of cancellation of that person's registration, in accordance with the Law and these Regulations.'

  4. The above paragraph was further amended by the Resolution of the Board of Directors of the Zakat, Tax and Customs Authority (ZTCA) Circular No. (01-06-24), dated 17 Jumādā al-Awwal 1446H (corresponding to 19 November 2024) as detailed in Footnote 35 above.
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