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October 29, 2026
This ZATCA Board of Directors Resolution amends the criteria for applying fair market value to taxable supplies under the KSA VAT framework. Specifically, it modifies the first paragraph of Article 38 of the Implementing Regulations of the Value Added Tax Law. The amendment refines the conditions for when the value of a supply must be its fair market value instead of the agreed consideration. This rule applies when a supply is made between related or commonly controlled persons for less than fair market value, and the recipient cannot claim a full input tax deduction.
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