GTL Summary:

Document Type: IR - Implementing Regulations
Law: Value Added Tax Law
Decision Number: 3839-article-39
Year: 2016
Country: 🇸🇦 KSA
Official Name: Article 39 - Value of Certain Supplies Subject to Tax
Last updated at: 2025-11-27 14:38:44 UTC

Chapter 7 - Value of Taxable Supplies

Article 39 - Value of Certain Supplies Subject to Tax [57]

  1. The deemed value of supplies that are treated as a supply transaction in accordance with the provisions of the Agreement, the Law, and the Regulations shall be the purchase price or the cost. In cases where it is not possible or appropriate to determine the purchase price or cost, the value of such supplies shall be the fair market value applicable on the date when the deemed supply occurs, and in accordance with the rules for determining the fair market value specified under the provisions of Article 38 of this Regulation.[58]

  2. Amounts paid by a government entity to a supplier shall not be regarded as a subsidy if such amounts, or any part thereof, constitute consideration for the supply of goods or services to that government entity.[59]

Footnotes

[57] The title of this Article was amended pursuant to the Board of Directors’ Resolution of the Zakat, Tax and Customs Authority by Circular No. (01-06-24), dated 17 Jumada Al-Ula 1446H (corresponding to 19 November 2024). Prior to this amendment, the title read as follows:
'Value of Specific Taxable Supplies – Nominal Supplies'

[58] The paragraph was amended pursuant to the decision of the Board of Directors of the Zakat, Tax, and Customs Authority by circulation, Resolution No. (01-06-24) dated 17 Jumada al-Awwal 1446 AH, corresponding to 19 November 2024 AD. Prior to this amendment, the paragraph read as follows:
'Where the supply of goods or services is treated as a deemed supply due to being made without consideration or for a purpose not related to the economic activity, or where the use of goods is changed to make non-taxable supplies, the value of such supplies shall be regarded as the purchase price or cost of those goods or services. In cases where the purchase price or cost cannot be determined at the time of supply, or where the supply involves a capital asset used in the economic activity, the value of such supplies shall be their fair market value.'

[59] The paragraph was amended pursuant Decision No. (01-06-24) of the Board of Directors of the Zakat, Tax and Customs Authority, dated 17 Jumada Al-Awwal 1446 AH, corresponding to 19 November 2024 AD. Prior to the amendment, this paragraph read as follows:
'The value of a Deemed Supply on the ceasing of an Economic Activity is the Fair Market Value of Goods which are retained on the date of deregistration, other than Goods on which Input Tax was not deducted by the Taxable Person.'

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