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July 17, 2026

Chapter 9 - Calculation of Tax Payable

Article 47 - Persons liable to pay tax in special cases

  1. In cases where the Agreement provides that a Taxable Customer is obligated to pay Tax on a Supply received from a Non Resident Supplier, Tax shall be paid by way of the Reverse Charge Mechanism. The Taxable Customer must report the Output Tax on the Supply and any Input Tax (to the extent that the Customer can benefit from Input VAT deduction) in the Tax Return for that Tax Period.

  2. For the purposes of applying Article 9 of the Law and these Regulations, in cases where electronic services are facilitated in the Kingdom through an electronic marketplace acting as an intermediary for one or more non-resident suppliers, the electronic marketplace shall be deemed to have purchased the services from the non-resident suppliers on its own account and to have resupplied them in its own name and on its own account to the customer benefiting from such services. The electronic marketplace shall be responsible for collecting and remitting the VAT due on taxable supplies made in the Kingdom through the marketplace. The rule set out in this paragraph shall not apply where all of the following conditions apply:

    1. If it is expressly stated that the non-resident supplier or suppliers are the ones making the supply in the Kingdom during the supply process via the Electronic Marketplace to the Customer, and in the contractual arrangements that took place between all parties to the transaction, and in the tax invoice and receipt issued to the Customer regarding the payment of the consideration.

    2. If the Electronic Marketplace is not the one setting the terms and conditions related to the supply of the services supplied through it, and does not determine the consideration for the supply of those services, and does not charge the Customers that consideration, nor does it undertake its collection, and does not handle processing Customer complaints, or offering any promotions or any compensations to the Customers in relation to the supply.

  3. For the application of Article 9 of the Law and these Regulations, in cases where the supply of goods or services in the Kingdom is facilitated through an electronic marketplace acting as an intermediary for a resident supplier or suppliers who are not registered for VAT purposes, the electronic marketplace shall be deemed to have purchased the goods or services from the unregistered resident suppliers on its own account and to have resupplied them in its own name and on its own account to the customer benefiting from those goods or services. The electronic marketplace shall be responsible for collecting and remitting the VAT due on taxable supplies made in the Kingdom through the marketplace. The rule set out in this paragraph shall not apply where all of the following conditions are met:

    1. If it is expressly stated that the unregistered resident supplier or suppliers are the ones making the supply in the Kingdom during the supply process via the Electronic Marketplace to the Customer, and in the contractual arrangements that took place between all parties to the transaction, and in the invoice and receipt issued to the Customer regarding the payment of the consideration.

    2. That an independent and direct contractual relationship arises between the unregistered resident supplier or suppliers and the Customer benefiting from the supply according to the statutory provisions in force in the Kingdom, and that the unregistered resident supplier or suppliers set all terms and conditions relating to the supply to the Customer.

    3. If the Electronic Marketplace is not the one setting the terms and conditions related to the supply of Goods or Services supplied through it, and does not determine the consideration for the supply, and does not charge the Customers that consideration, nor does it undertake its collection, processing Customer complaints, or offering any promotions or any compensations to the Customers in relation to the supply.

  4. For the purposes of applying the provisions of this Article:

    1. An electronic marketplace shall not be considered to be facilitating the supply of goods or services where its role is limited to processing payments related to the purchase of goods or services through it on behalf of suppliers, or to marketing or advertising goods or services offered through it without facilitating the supply process through it, or in redirecting customers to another electronic marketplace that facilitates the supply.

    2. The term “electronic marketplace” refers to an electronic or digital platform, or equivalent means, whose main purpose or one of its main purposes is to enable suppliers to display their products - whether goods or services - or to provide, make available, or enter into contracts for them with the customers benefiting from them.

  5. In cases where the provisions set out in Article 17 of these Regulations do not apply, both the transferor and the transferee shall be jointly liable for the payment of tax and any penalties due that arose prior to the date of the transfer of the activity. This shall apply in cases of transfer of the activity that result in the complete cessation of the transferor’s economic activity, where the Authority has not been notified of the transfer in accordance with paragraph 13 of Article 13 of these Regulations.