GTL Summary:

This Resolution by the Board of Directors of the General Authority of Zakat and Income, No. (1-5-20) dated 14 Safar 1442H (1 October 2020), significantly amends the value added tax treatment of real estate supplies. It modifies Article 30 of the VAT Implementing Regulations, expanding the scope of VAT exemption. The amendment exempts the supply of all real estate—commercial, residential, agricultural, or bare land—via transfer of ownership. It also maintains the existing exemption for the lease or license of residential real estate, clarifying that temporary accommodation like hotels remains subject to VAT.

Document Type: IR - Implementing Regulations
Law: Value Added Tax Law
Decision Number: implementing-regulations-3839-article-30
Year: 2016
Country: 🇸🇦 KSA
Official Name: Article 30 - Real Estate Supplies Exempt from Tax
Last updated at: 2026-01-05 08:39:39 UTC

Chapter 5 - Exempt Supplies

Article 30 - Real Estate Supplies Exempt from Tax[38]

  1. Subject to the other express provisions of these Regulations, the following Supplies shall exempt from VAT:[39]

    1. The Supply of real estate, whether commercial, residential or agricultural real estate or developed or undeveloped bare land, through a transfer of ownership or transfer of the right to dispose of the same as an owner;

    2. The Supply of residential real estate through lease or license.

  2. For the purposes of this Article, Residential Real Estate means a permanent dwelling designed for human occupation, including:

    1. immovable property used or intended to be used as a home, such as houses, flats and apartments,

    2. other Real Estate intended as a Person's primary residence, including residential accommodation for students or school pupils.

  3. Notwithstanding the first and second Paragraphs of this Article, any hotels, inns, guest houses, motels, serviced accommodation or any other building that is designed to offer temporary accommodation to visitors or travelers are not considered as Residential Real Estate.

  4. Residential Real Estate includes the boundaries legally assigned to the property, including gardens, garages or any other feature that is considered a permanent part of the property.

Footnotes

[38] The title of the Article was amended pursuant to the Resolution of the Board of Directors of the General Authority of Zakat and Income No. (1-5-20), dated 14 Ṣafar 1442H (corresponding to 1 October 2020).
Prior to the amendment, the title read as follows:
'Leasing or Licensing of Residential Real Estate for Occupation.'

[39] Paragraph (1) was amended pursuant to the Resolution of the Board of Directors of the General Authority of Zakat and Income No. (1-5-20), dated 14 Ṣafar 1442H (corresponding to 1 October 2020).
Prior to the amendment, the title read as follows:
'Subject to any other provisions in these regulations, the supply of residential property for lease or licence shall be exempt from value added tax.'

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