Chapter 6 - Zero-Rated Supplies
Article 32 bis
Suspension of Tax on Import and Supply Transactions Related to Tax Suspension [41]
The supply of goods to any of the customs suspension arrangements shall be subject to a zero rate, and the supply of goods within such arrangements shall be in accordance with the provisions of the Unified Customs Law.
The re-export of goods that have been temporarily imported into the Kingdom for repair, restoration, treatment, or processing shall be subject to zero percent tax, provided that the provisions and procedures stipulated in the Unified Customs System are met.
Tax due on the importation of goods placed under customs suspension arrangements shall be suspended if the conditions for suspension stipulated in the Unified Customs Law are met. The tax becomes due upon the release of the goods from customs suspension, in accordance with the conditions and procedures stipulated in the Unified Customs Law.
Goods exported from any of the customs suspension arrangements to outside the GCC territory shall be treated as exports of goods and subject to the export treatment applicable to such goods.
Without prejudice to any other provisions stated in the applicable laws of the Kingdom, the same tax treatment provided for in paragraphs (1), (2), (3), and (4) of this Article shall apply to the importation of goods into, or the supply of goods to, or within, any of the special zones, or between two special zones, or when goods are removed from customs suspension or from the GCC territory—depending on the nature of the transaction—provided that all of the following conditions are met:
The special zone must be one that enjoys customs suspension status in accordance with the provisions of the Unified Customs Law.
The goods must be related to the licensed activities carried out in the zone, in accordance with the regulatory provisions issued concerning the special zone.
The goods must be placed under one of the customs suspension arrangements in accordance with the provisions of the Unified Customs Law.
The special zone must have procedures in place to monitor the movement and supply of goods into, within, and out of the zone.
Invoices and documents related to supplies within special zones must be retained in accordance with the provisions of this Regulation.
For the purposes of applying the provisions of this article, the taxpayer must keep all documents proving the location of the goods at the time of supply and proving their transfer and placement under any of the customs duty suspension regimes or from or within them - including those relating to special zones - and shall include, in particular, customs documents issued in accordance with the provisions and procedures of the Unified Customs System.
The provisions of this Article shall not apply to water, electricity, or all forms of energy, including gas, lighting, heating, cooling, or air conditioning, which are not subject to customs suspension procedures.