GTL Summary:

Article 27 of the Implementing Regulations of the Value Added Tax Law establishes the rules for determining the place of supply for goods sold with transportation. It specifies that a supply is made with transportation when agreed by both supplier and customer. For chain transactions involving the same goods, only the first supply where transport is organised is deemed to be with transportation. Crucially, for goods transported from outside the GCC to the Kingdom, the place of supply is in Saudi Arabia only if importation under the Unified Customs Law precedes the supply. Any supply prior to this is outside the Kingdom.

Document Type: IR - Implementing Regulations
Law: Value Added Tax Law
Decision Number: implementing-regulations-3839-article-27
Year: 2016
Country: 🇸🇦 KSA
Official Name: Article 27 - Goods Sold with Transportation
Last updated at: 2026-01-05 08:39:39 UTC

Chapter 4 - Place of Supply

Article 27 - Goods Sold with Transportation

  1. Subject to the scond Paragraph of this Article, a Supply of Goods is made with transportation or dispatch in cases where the Supplier and Customer both agree that the goods will be transported to the Customer as a consequence of that Supply.

  2. In cases where Goods are transported directly from one country to another and it is contemplated that this transport will take place in respect of multiple Supplies of these same Goods to different Customers, only one Supply of these Goods is considered to be a Supply made with transportation or dispatch. For the purposes of this Paragraph, the supply with transportation or dispatch shall be deemed to be the first one in which either the Supplier or the Customer is responsible for organizing the transport.

  3. In cases where transportation of Goods being supplied to the Kingdom commences from outside of Council Territory, the place of Supply of the Goods will be in the Kingdom if the Goods have been imported into the Kingdom in accordance with the Unified Customs Law before the supply takes place. Any Supply of such Goods before the Import of Goods in accordance with the Unified Customs Law shall be considered as being made outside the Kingdom.

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