GTL Summary:

Document Type: IR - Implementing Regulations
Law: Value Added Tax Law
Decision Number: 3839-article-36-bis
Year: 2016
Country: 🇸🇦 KSA
Official Name: Article 36 Bis - Supplies of qualifying military goods
Last updated at: 2025-11-27 14:38:44 UTC

Chapter 6 - Zero-Rated Supplies

Article 36 Bis
[53]

  1. Supplies of qualifying military goods to the armed forces and security forces of the Ministry of Interior and all its sectors shall be subject to VAT at the zero rate, provided that such supply is made by a person registered for VAT with the Authority and licensed by the General Authority for Military Industries in the field of military manufacturing.

  2. For the purposes of applying this Article, “qualifying military goods” refers to locally manufactured military goods, provided that the supplier holds a valid certificate of supply of qualifying military goods issued by the General Authority for Military Industries confirming that the supply meets all the conditions and requirements stipulated in this Article.[54]

  3. The zero rate shall only apply to supplies that meet all the conditions and requirements stipulated in this Article as of the date the tax becomes due and within the limits of the qualifying military goods supplied. The Governor of the Authority, in coordination with the General Authority for Military Industries, may issue additional regulations related to the implementation of this Article.

Footnotes

[53]Article 36 Bis was added pursuant to Resolution No. (05-09-22) of the Board of Directors of the Zakat, Tax and Customs Authority dated 5 Jumada Al-Awwal 1444 AH, corresponding to 29 November 2022 AD.

[54] The paragraph was amended by a decision of the Board of Directors of the Zakat, Tax and Customs Authority in Report No. (01-06-24) dated 17 Jumada Al-Awwal 1446 AH, corresponding to 19 November 2024 AD. Prior to the amendment, it read as follows
'2. 'Qualified Military Goods,' for the purposes of applying the provisions of this Article, shall mean military goods manufactured locally that meet all of the following conditions:

  1. The goods supplied shall be manufactured locally by the same supplier who applies the zero rate to such supply.

  2. The supplier shall have obtained a Certificate of Supply of Qualified Military Goods from the General Authority for Military Industries (GAMI) confirming that the supply satisfies all requirements and conditions set forth under this Article.

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